Barclays and Chase customers warned of changes to popular savings accounts

Interest rates for some accounts are changing
-Credit:Reach Publishing Services Limited


Barclays is reducing interest rates on a number of its popular savings accounts. The interest rate on the Barclays Everyday Saver will be reduced from 1.51% to 1.26% on balances up to £10,000.

People who have more than £10,000 saved will see the interest rise from 1.16% to 1.26%. The interest rate on its Barclays Rainy Day Saver is being slashed from 5.12% to 4.87% on balances up to £5,000.

Anyone with a balance topping £5,000 will see no change to the interest rate, so it will remain at 1.16%. Barclays is not the only bank to be cutting its savings rates.

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Chase offers an interest rate that tracks 1.25% below the Bank of England base rate, which is now 4.75%, Mirror reports. But there will be a change from February 19.

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It will track 1.5% below the Bank of England base rate. This means that customers who do not have a boosted saving rate with Chase will see the standard interest rate go down from 3.5% to 3.25%.

New Chase customers currently get an extra 1.5% bonus on their savings for six months. Anyone who took out a Chase account before December 9, 2024, would have seen the offer at 1%.

But this came to an end on January 26. It is worth seeing what your savings rate is as there are many accounts which still pay better than the rate of inflation.

It's important to find the right type of account to suit your needs. Easy-access savings accounts usually allow you to make withdrawals whenever you want - but some providers do limit how many withdrawals you can make in a set period of time.

If you do not need access to your cash, there are notice and fixed rate savings accounts. These accounts lock your money away for a set period of time.

Cash ISAs currently pay the best rates - but you should keep in mind that you can only deposit £20,000 each tax year into an ISA. Any interest you make from an ISA account is also free from tax.