The New Top Easy Access Savings Discussion Area

MichaelAP

What annoys me with Chip is:-
1. They never announced a change.
2. It was done with immediate effect unlike Tandem who gave their customers until 15th August before change.

linz

MichaelAP said:

What annoys me with Chip is:-
1. They never announced a change.
2. It was done with immediate effect unlike Tandem who gave their customers until 15th August before change.

Precisely the reason I moved what I had in there to Skipton with immediate effect 👍

1spiral

masonic said:

1spiral said:

gravel_2 said:

flaneurs_lobster said:

gravel_2 said:

Chip saving down to 4.58%.

Any word on the Flexi ISA (I know there's an ISA board....)

Post above mine said it - Chip ISA is already down to 4.84 from 5.1.

If this tracks the base rate, how comes it has dropped by 0.26 and not 0.25?

That's the miracle of compounding at work.

But isn't the 5.1% AER not Gross?

masonic

1spiral said:

masonic said:

1spiral said:

gravel_2 said:

flaneurs_lobster said:

gravel_2 said:

Chip saving down to 4.58%.

Any word on the Flexi ISA (I know there's an ISA board....)

Post above mine said it - Chip ISA is already down to 4.84 from 5.1.

If this tracks the base rate, how comes it has dropped by 0.26 and not 0.25?

That's the miracle of compounding at work.

But isn't the 5.1% AER not Gross?

Correct. The gross rate tracks the base rate. AER is an artificial figure provided to consumers so that they can compare like-for-like across savings products with different interest payment frequency. It is not used to determine how much interest is paid in real world scenarios. For that the gross rate is used.

snnexus6

refluxer said:

BigBlueSky said:

refluxer said:

Today's BoE cut means that the recent boosted Chase Saver will go from 5.1% to 4.85% next Thursday (8th August).

Will they definitely reduce it that quickly ?

Yes, the account T&Cs state that rate changes will occur 5 business days after any changes to the base rate are announced.

The normal Chase Saver tracks 1.15% below the base rate and the most recent boosted Saver tracks 0.15% below (until next January)

I've just been looking at alternative options if the Chase interest drops to 4.85% next week.
However, looking at the terms & conditions again it appears to state that the underlying rate won't change until the 16th January 2024.

Quoted from Chase T&C's linked to account:

"What's the interest rate on the account?
The interest rate for the Chase saver account is currently 4.1% AER (variable, 4.02% gross), calculated every day and paid every month.

Your interest rate with the boost is currently 5.1% AER (variable, 4.98% gross), calculated daily and paid monthly until 16 January 2025. After this date, the interest rate will change to the standard variable interest rate for the Chase saver account. We'll let you know when this is about to happen."

So the important point there stating the rate will only change on 16th Jan when the rate reverts to the standard variable interest rate and only then linked to the BoE rate.

So I believe in my circumstances the rate in the boosted account will not alter until 16/01/24 and it will then be linked to whatever the BoE rate will be.

We'll find out for certain next week...!

masonic

snnexus6 said:

refluxer said:

BigBlueSky said:

refluxer said:

Today's BoE cut means that the recent boosted Chase Saver will go from 5.1% to 4.85% next Thursday (8th August).

Will they definitely reduce it that quickly ?

Yes, the account T&Cs state that rate changes will occur 5 business days after any changes to the base rate are announced.

The normal Chase Saver tracks 1.15% below the base rate and the most recent boosted Saver tracks 0.15% below (until next January)

I've just been looking at alternative options if the Chase interest drops to 4.85% next week.
However, looking at the terms & conditions again it appears to state that the underlying rate won't change until the 16th January 2024.

Quoted from Chase T&C's linked to account:

"What's the interest rate on the account?
The interest rate for the Chase saver account is currently 4.1% AER (variable, 4.02% gross), calculated every day and paid every month.

Your interest rate with the boost is currently 5.1% AER (variable, 4.98% gross), calculated daily and paid monthly until 16 January 2025. After this date, the interest rate will change to the standard variable interest rate for the Chase saver account. We'll let you know when this is about to happen."

So the important point there stating the rate will only change on 16th Jan when the rate reverts to the standard variable interest rate and only then linked to the BoE rate.

So I believe in my circumstances the rate in the boosted account will not alter until 16/01/24 and it will then be linked to whatever the BoE rate will be.

We'll find out for certain next week...!

Do you not see the word "currently" and "variable" straddling the 5.1% AER? The change mentioned in January is from the "boosted rate", which is variable, to the "standard variable rate".

gwapenut

MichaelAP said:

What annoys me with Chip is:-
1. They never announced a change.
2. It was done with immediate effect unlike Tandem who gave their customers until 15th August before change.

They didn't need to, the product page stated that the variable element tracked the base rate.

Rheumatoid

snnexus6 said:

refluxer said:

BigBlueSky said:

refluxer said:

Today's BoE cut means that the recent boosted Chase Saver will go from 5.1% to 4.85% next Thursday (8th August).

Will they definitely reduce it that quickly ?

Yes, the account T&Cs state that rate changes will occur 5 business days after any changes to the base rate are announced.

The normal Chase Saver tracks 1.15% below the base rate and the most recent boosted Saver tracks 0.15% below (until next January)

I've just been looking at alternative options if the Chase interest drops to 4.85% next week.
However, looking at the terms & conditions again it appears to state that the underlying rate won't change until the 16th January 2024.

Quoted from Chase T&C's linked to account:

"What's the interest rate on the account?
The interest rate for the Chase saver account is currently 4.1% AER (variable, 4.02% gross), calculated every day and paid every month.

Your interest rate with the boost is currently 5.1% AER (variable, 4.98% gross), calculated daily and paid monthly until 16 January 2025. After this date, the interest rate will change to the standard variable interest rate for the Chase saver account. We'll let you know when this is about to happen."

So the important point there stating the rate will only change on 16th Jan when the rate reverts to the standard variable interest rate and only then linked to the BoE rate.

So I believe in my circumstances the rate in the boosted account will not alter until 16/01/24 and it will then be linked to whatever the BoE rate will be.

We'll find out for certain next week...!

read the next para 'Can the interest rate change'

slinger2

As noted, it's important to realise that the Chip savings accounts (ISA and non-ISA) are trackers. Changes in the base rate are reflected immediately in the interest rate you get. There's no 14 day notice for such a change. As also noted, the gross interest rate was reduced by exactly 0.25%. However when these rates are turned into "AER" rates the reduction was 0.26% because with lower interest rates there's less compounding: 4.99% gross paid monthly turns into 5.10% AER while 4.74% only turns into 4.84% AER. That's just way the AER formula works.

changearound1

Santander have brought out  Issue 2 of the Edge Saver with interest reduced to 6% AER on £4000  (4.5% + 1.5% bonus for 12 months).

https://www.santander.co.uk/assets/s3fs-public/AD_documents/Santander Edge Saver (Issue 2) Key Facts Document SAVEMC0323AUG24IPGCDT.pdf