Chip ISA interest rate drop without notification?

freeguy1984uk

Hi all, I've just noticed that my Chip ISA interest rate has dropped some time within the past week or so, but I never got any email notification to say it was happening?

I thought the regulations were that if an interest rate was reducing, they had to notify the customer beforehand?

Anyone else had this issue with Chip?   Thanks.

Barkin

I'm guessing this is a base rate tracker? 

eskbanker

The Chip Cash ISA has a tracker rate. This means the gross interest rate is variable and tracks at 0.26% below the current Bank of England base rate.

Basically, when the base rate moves up or down, your savings rate will move on the same day. This ensures it automatically stays competitive and in line with the wider market.

https://www.getchip.uk/savings-accounts/cash-isa

slinger2

"Your rate will change whenever the Bank of England base rate changes. When the BoE base rate moves up or down, your savings rate will move on the same day."

It's what you signed up to.

freeguy1984uk

Thanks for the replies, I totally forgot it's a tracker. Brain not working too good today. Cheers.

1spiral

Although it is a tracker, I'm still surprised they are not obliged to tell you (even if after the event). Not everyone sees the news and may therefore  oblivious to the fact that interest rates have changed.

I thought all institutions now had to inform you of changes in rates. I wouldn't of thought they could exclude themselves from that requirement just because you'd agreed to a specific t&c.