Bank of England rate change
Our interest rates aren't automatically tied to the Bank of England bank rate. We do keep our interest rates under constant review though, and we’ll let customers know if there are any changes in the future.
Interest rates explained
AER is the rate of interest you earn from us on any balance above £0. It's short for Annual Equivalent Rate and shows the interest rate for a year, taking into account any interest payments made to you during the year. The AER enables you to easily compare the interest rates on accounts from different banks and building societies where interest may be calculated or paid at different frequencies.
Gross interest is the rate used to calculate your monthly interest payments where no tax is deducted. UK bank interest is paid gross. The interest you receive is subject to taxation.
Chase interest rates
Effective from 14 August 2023:
Chase current account
Chase saver account
How we pay interest
We calculate your interest daily and pay it monthly. With a 1% AER interest rate that means, if you put in £1,000 on your first day, you'd earn £10 in interest over the year. If nothing changes (including the interest rate), you'd have £1,010 at the end of the year. Please note, a 30 day month will generate less interest than a 31 day month.
Interest and tax
Interest you earn with a bank is taxable in the UK. We don't deduct tax from your interest before it's paid to you, as the amount of tax you pay depends on how much you earn.
You'll need to tell HMRC yourself if you need to pay tax on your interest. If you're a UK taxpayer, you might get the UK Personal Savings Allowance, which basically lets you earn some interest before tax. How much your tax-free amount is depends on your tax rate. If you pay the basic rate of income tax, you can earn £1,000 in interest before tax. Higher rate taxpayers have £500 before tax and additional rate taxpayers get no UK Personal Savings Allowance. You can find out more on gov.uk (Opens in new window)
If you are also tax resident in another country, interest income may be taxable in that other country.
This note is general information for customers on taxation. It is not tax advice and must not be treated as advice. Customers' tax treatment will depend on their individual circumstances and may be subject to change in the future.