Chase Bank makes unwelcome change to savings accounts from Thursday | Personal Finance | Finance

Chase bank has issued an unwelcome message to customers with savings accounts. The popular online-only bank has announced it will cut its interest rates on savings accounts permanently by 0.25 percentage points.

Chase has become one of the most popular online banks in the UK thanks to its 1% cashback offer, its boosted savings rate for new customers and fee-free spending abroad. The bank’s savings normally track 1.5% below the Bank of England’s base rate. It means that, whatever the Bank of England’s base rate is, Chase customers will always be 1.5% from that interest rate with their savings from Thursday, August 14, when the change is made. Chase issued a message to customers which said: “On 7 August 2025, the Bank of England base rate was reduced by 0.25% [it’s actually 0.25 percentage points] meaning the new rate is 4%.

“As the Chase saver rate is tied to the Bank of England base rate, we’ll be updating it. The standard saver rate will change from 2.75% AER (2.72% gross) variable to 2.5% AER (2.47% gross) variable on 14 August 2025.”

The Bank of England chose to cut interest rates to 4%, which means Chase savers will be getting a 2.5% interest rate on their savings.

The Bank’s Monetary Policy Committee (MPC) chose to reduce interest rates by 0.25 percentage points to its lowest level since March 2023.

Policymakers pointed to a recent fall in pay growth and reduced uncertainty over the impact of US tariffs.

The decision is likely to bring relief to some borrowers, who will benefit from lower mortgage deals entering the market as a result of the Bank’s base rate being lowered.

However, Governor Andrew Bailey described it as a “finely balanced decision” after MPC members were forced to hold a second vote after failing to reach a majority the first time.

Mr Bailey also stressed that the future path for rate cuts was clouded by uncertainty amid divisions among the committee and an array of conflicting economic data.

“I do think the path continues to be downwards,” Andrew Bailey said.

“There is however genuine uncertainty about the course of that direction of rates.

“The path has become more uncertain because of what we are seeing.”