Nationwide, Barclays and Chase to make bank account changes in weeks – see if you’re affected
NATIONWIDE, Barclays and Chase are all making major changes to their bank accounts in the next few weeks.
All three are slashing rates on their savings accounts, so you’ll get less interest on any cash you’ve stashed away.
Nationwide is lowering rates on almost 90 accounts by between 0.1 and 0.26 percentage points from February 1.
Meanwhile, Barclays and Chase are slashing rates on a combined three accounts from February 13.
It come following the Bank of England‘s (BoE) earlier decision to cut the base rate from 5% to 4.75% in November.
The base rate is charged to high street banks and any rise or fall is mirrored in savings rates.
Here are all the upcoming changes and what you can do if you’re facing dwindling interest on your savings.
Nationwide
Nationwide is slashing its rates on 89 variable-rate easy and instant access savings and cash ISA products next month.
The building society is dropping rates on 55 non-ISA savings accounts, with many dropping by 0.25% from February 1.
This includes the Branch Easy Access, Cashbuilder Book, Cashbuilder Card and Direct Easy Access accounts.
Nationwide is also reducing the interest rate on 34 ISAs, with most seeing their rates dropped by 0.25%.
However, the building society is also upping the rate on its Branch Single Access non-ISA savings account by 0.75% from 2.8% to 3.55% from next month.
Barclays
Barclays is dropping rates on two of its savings accounts – the Everyday Saver and Rainy Day Saver.
The accounts let you deposit and withdraw money freely, but the interest rate can change if you make any withdrawals.
The interest rate for the Everyday Saver is dropping from 1.51% to 1.26% on balances up to £10,000.
However, if you’ve got more than £10,000, the rate is going up from 1.16% to 1.26%.
Meanwhile, the Rainy Day Saver is going from 5.12% to 4.87% on balances up to £5,000.
On balances over £5,000, the rate is staying the same at 1.16%.
Chase
Online-only bank Chase is dropping the interest rate on its easy-access Chase Saver account in February.
The savings account’s interest rate tracks the Bank of England’s (BoE) base rate.
The Chase Saver interest rate sits at 1.25% below the base rate, which is currently at 4.75%.
However, from February 19, the interest rate will track 1.5% below the base rate instead – a 0.25 percentage point change.
It means savers will see their interest rate go down from 3.5% to 3.25% currently.
How to get the best savings rate
Anyone looking to ditch Barclays, Nationwide or Chase can find better deals elsewhere.
According to Moneyfactscompare.co.uk, the best easy-access savings account currently is with Chip which is paying 4.85%.
The best easy-access cash ISA from Plum is 5.06%, and any savings you earn are protected from tax.
Bear in mind, the best type of savings account for you depends on your circumstances.
For example, with cash ISAs, you can only deposit up to £20,000 in a tax year, but you can add more to a standard savings account.
However, the advantage of a cash ISA is that you aren’t taxed on any earnings.
A standard savings account will see you taxed on interest earned above your Personal Savings Allowance (PSA).
This is either £0, £500 or £1,000 depending on your income tax band.
Easy-access accounts are useful if you’re looking to dip into your savings on a regular basis.
Some let you withdraw cash an unlimited amount while others give you a set amount of withdrawals before you are charged.
Fixed rate savings accounts, also known as fixed term bonds, offer you a fixed rate of interest over a set period of time.
They usually offer better rates than easy-access savings accounts but in most cases penalise you for each withdrawal made.
If you’re thinking about opening a savings account, it’s worth comparing the best ones on a comparison website.
Some worth trying include moneyfactscompare.co.uk, comparethemarket.com or moneysavingexpert.com.
SAVING ACCOUNT TYPES
THERE are four types of savings accounts fixed, notice, easy access, and regular savers.
Separately, there are ISAs or individual savings accounts which allow individuals to save up to £20,000 a year tax-free.
But we’ve rounded up the main types of conventional savings accounts below.
FIXED-RATE
A fixed-rate savings account or fixed-rate bond offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw, but it comes with a hefty fee.
NOTICE
Notice accounts offer slightly lower rates in exchange for more flexibility when accessing your cash.
These accounts don’t lock your cash away for as long as a typical fixed bond account.
You’ll need to give advance notice to your bank – up to 180 days in some cases – before you can make a withdrawal or you’ll lose the interest.
EASY-ACCESS
An easy-access account does what it says on the tin and usually allows unlimited cash withdrawals.
These accounts tend to offer lower returns, but they are a good option if you want the freedom to move your money without being charged a penalty fee.
REGULAR SAVER
These accounts pay some of the best returns as long as you pay in a set amount each month.
You’ll usually need to hold a current account with providers to access the best rates.
However, if you have a lot of money to save, these accounts often come with monthly deposit limits.
What will happen to savings rates in 2025?
Savings rates usually go up and down based on the BoE’s base rate, which currently sits at 4.75%.
The base rate is decided by the Monetary Policy Committee (MPC), which is made up of nine members.
The MPC will next meet on February 6.
If the base rate falls, it spells bad news for savers who see the interest rates on their savings account drop.
However, it is usually good news for those looking for a mortgage as it leads to rates on these dropping.
It’s worth bearing in mind, if you’ve got a savings account, the interest rate won’t drop if it’s a fixed bond.
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