Will chase pass on the interest rate rise?

Daliah

inflationbuster said:

Given how many people opened a saving account for that juicy 1.5% rate l doubt they will be increasing it by much soon.  Keep an eye out of Marcus they may do so to temp away Chase savers.

Marcus? Just another has-been.

Beddie

They don't really want the customers who jump ship for 0.25% at the first sign of a new market leading rate. Those people are not profitable to them.

Most of us on here are those types of people though! I'm going to give them until the end of August, when every provider will have reviewed their rates, then decide what to do. A month's interest differential is neither here nor there.

Martico

The 1% cashback and (to a lesser extent) the 5% on top-up are still pretty compelling. But I can keep those if I decide to move the instant access savings elsewhere

jimexbox

I think chase are so big, that the uk is a flea bite in terms of profit. So whoever has picked up their bonus for the 1.5% offer and moved on.

Imagine a bank that is 'fair' with savers and borrower's. We can only hope. It's an odd concept. 

t1redmonkey

Just open a Zopa/Al Rayan account instead of waiting for something that may or may not happen. Just keep a few quid in there to keep it open, then if they up their rates easy to move back to them.

ZeroSum

When Marcus opened up they came with a market leading rate. Then they were no longer market leading & didn't even try to compete. I can see chase doing exactly the same.

My cashback offer runs out I'm about 6 weeks, then I'll stop using the card. I'm using it less anyway as stoozing is now more profitable. Savings are being shipped to zopa. I'll probably just keep the card for holidays unless something better comes along.

isasmurf

I agree that I don't expect either Chase or Marcus to increase their rates to market leading,  but have very different reasons for not doing so. 

Chase is building a full service digital bank and the easy access account was offered as a loss leader to build brand awareness and their customer base.  It achieved those aims and with other incentives,  it was arguably too successful as they had to introduce a 5 week waiting list for new customers to their current account. I suspect the more important metric for them is the customer base for the current account rather than the amount they hold in savings deposits. They are probably ahead of where they expected to be in the growth of their customer base so will be in a period of more natural growth which won't require offering incentives such as market leading savings rates.

Marcus on the other hand have no intention of building a full service digital bank in the UK (unlike in the US) because of the regulatory environment here. They built up the maximum amount of savings balances they are allowed under the regulations they want to operate in.  They don't want to attract additional funds that will take them over the maximum amount they are allowed to hold without requiring changes to their structure under UK regulations so they will position themselves at just below the market leaders. Additionally,  they said last year their strategy was to move to be an investment and wealth provider and to that end intend to introduce their robo investments in the UK.