Bank reduces interest rate on simple-access savings accounts - should you consider changing providers?
In a recent shift, the interest rate on Chase current account balances dropped to 3.85% AER on 5 August 2024, following a Bank of England base rate cut. This move is part of a broader trend, as other competitors are also adjusting their rates in response to market conditions, even if their products aren't directly linked to the Bank of England's benchmark rate.
The Bank of England has remained cautious in its language, indicating that interest rates will need to "continue to remain restrictive." This suggests that the account's interest rate could fall further if the base rate is cut again this year.
As of the latest updates in August 2025, the highest current rates for easy-access savings accounts in the UK are around 5% AER. Chase stands out with a 5% AER offer, particularly for new customers within the first 31 days. Other competitive easy-access rates include:
- Cahoot Simple Saver at 4.55% AER with a minimum deposit of £1 and a maximum balance earning interest up to £500,000.
- Chip Instant Access Account offers a 4.84% AER boosted rate for three months, then drops to 2.74%.
Santander’s Easy Access Saver Limited Edition, while still competitive within the big bank segment, has recently lowered to 3.00% AER. Other banks like Oxbury Bank, RCI Bank, and Charter Savings Bank offer rates around 4.3% to 4.4% but often for fixed terms or accounts with limited flexibility.
It's important to note that some savings deals offered by Chase have been pulled from the market, meaning savers need to move quickly to avoid missing out on good rates. For instance, a bonus deal that offered a 1% boost on top of the standard Chase savings rate was available until 17 July but ends on 16 January 2025.
Experts predict that the Bank of England may cut rates slowly, citing the old adage that rates tend to rise like a rocket but fall like a feather. This could mean that the top easy-access rates on the market, currently paying rates north of 5%, may remain for some time.
The top easy-access rates on a balance of £10,000, as of the publishing date, are: Ulster Bank Loyalty Saver (5.20%), Principality Building Society Online Bonus Triple Access (5.00%), and Paragon Bank Double Access Saver (4.91%).
The digital challenger bank Chase also offers a tracker savings rate, which is 1.15% less than the Bank of England base rate. This means that if the base rate falls, so will the savings rate, barring any changes to the terms and conditions.
In summary, for truly easy-access savings accounts in the UK right now, Chase’s 5% AER offer stands out as the highest, followed closely by accounts from Chip (4.84%) and Cahoot (4.55%). Santander's offerings are lower but still competitive within the big bank segment. Markets are currently pricing in another base rate cut later this year, so it's a great time for savers to take advantage of these high rates.
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