3 min read

The Base Rate is up.

Published on
August 8, 2022
Author
Paul
Head of Commercial
Join our newsletter
Sign up to hear exclusive news and product updates.
By subscribing you agree to with our Privacy Policy
Thanks! You're added to the list.
Oops! Something went wrong while submitting the form.

The Bank of England just took the base rate up. When will your savings rate go up? What's Chip doing about it?

As you'll know, Chip is not a normal savings account. We fight to bring amazing rates to you, as well as automatically build your savings.

The Bank of England has announced that they will increase the base rate from 0.10% to 0.25%.

This is important for savers because it could have an impact on the interest rate your bank pays you on your savings account. But it's especially big news for Chip savers, because we're already swinging into gear to bring you better rates.

And remember, you can now earn 0.70% (variable) AER on up to £85,000 on any price plan in Chip!

What's the base rate?

Busting the jargon.

The base rate of interest is set by the Bank of England (the UK's central bank that controls monetary policy), it's the interest rate they pay to commercial banks.

As a rule, when the inflation rate is high (prices are going up), the Bank of England raises the base rate to try to slow inflations down.

It's one of the biggest influences on the rates that banks charge people to borrow money or pay on their savings. So when the base rate goes up, savings rates should go up too.

What will happen to savings rate?

They could go up, but not right away.

It’s unlikely we'll see an immediate jump in savings rates, Banks will take a little while to decide what they want to do.

It likely depends on what happens after this rate rise. Essentially they'll be asking "will the Bank of England raise the base rate again?"

The last time the Bank of England raised rates in two consecutive quarters, the savings market saw rates go up.

But with many banking pundits speculating that it's likely we'll see the base rates rise again in early 2022, banks might react to this and up their savings rates now.

As a rule they'll up their notice accounts' rates first, followed by easy-access rates after.

Predicting the future (sadly Chip can't... yet)

Bear in mind the decision over what to do with the base rate has many unpredictable influences.

For example, after the Covid-19 outbreak in 2020 the BoE took the base rate from 0.75% to 0.1%. So without a crystal ball, it's hard to say for sure what will happen!

What's Chip doing to bring me better rates?

We're always hustling for better deals for you.

As always we’re working with the best people and banks to constantly bring you the best savings rates.

If rates increase as expected, rest assured we’ll be at the front of the queue aiming to deliver the best possible returns to Chip savers.

But right now you can earn 0.70% (variable) interest on up to £85,000 on all price plans in Chip. Read more here.

What can I do now?

The more savers, Chip has, the better rates we can bring you.

One of the most important aspects of Chip is that by negotiating on behalf of our users we can get the best rates possible. 400,000 people have so much weight, it truly is the power of the community. As Chip grows, this community will only have more power and be able to demand better terms.

So how can you help?

The more savers that save with Chip the more powerful we are. So, if you know someone who isn’t saving with Chip, please forward them this article and get them to sign up.

£0.00/28days
Basic
Tax wrappers: General Investment Account
Build your long-term wealth, free of charge. For those who want great savings accounts, and access to basic investment funds.
Access to leading saving accounts
General Investment Account with a selection of funds
FTSE 100, S&P 500 and BlackRock Mixed Investment Funds (annual platform fee of 0.5%)
Investment Funds managed by BlackRock (annual platform fee of 0.5%)
Prize Savings Account 
Save without feeling it with our award winning AI-powered automatic saving (45p per autosave)
Build wealth yourself and program recurring saves into any account in our new Savings Plans (25p per save)
2 free withdrawals per month
Get started
£4.99/28days
ChipX
Either £4.99 every 28 days (paid annually at £65.05) or £5.99 every 28 days (paid monthly)
Tax wrappers: General Investment Account, Stocks & Shares ISA
One of the most comprehensive wealth management tools on the market. Adds full access to our range of investment funds, with no platform fees in either a GIA or ISA, as well as exclusive access to our Alternative Assets platform.
Zero platform fees
Zero trading fees
Zero withdrawal fees
Additional entries into our Prize Savings Account (TBC)
Stocks & Shares ISA
General investment account with a selection of funds
Access to leading saving accounts
All the investment funds from the basic plan plus: Ethical funds, Commodity funds, thematic funds, Crypto Companies Fund and BlackRock actively managed funds
Unlimited free usage of our AI-powered autosaving and recurring saves
Unlimited withdrawals
Unlimited access to Alternative Assets like whisky, wine and classic car investing
Get started
£9.99/28days
Chip Wealth
Tax wrappers: General Investment Account, Stocks & Shares ISA, Junior ISA
Build your long-term wealth, at every stage of your life. Access to everything from the previous tiers, we will be looking to add JISAs, managed portfolios and more in the future.
Everything from previous tiers +
More complex investment products, more tax wrappers, managed portfolios, Income Funds and much more
Early access to Alternative Assets like whisky, wine and classic car investing.
For these plans we’ll be working closely with our communities to iron out the details. Get involved in the discussion on the community forum here
The ChipX savings account
Coming 2023
£TBC
Chip Private Banking
Tax wrappers: Everything from the previous tiers
We’re building an invitation-only Private Banking experience. Supercharge your experience with professional account managers, wealth coaching services, and elite rewards programs for our most exclusive tier.
Everything from previous tiers +
Access to an account manager who helps you get the most out of your accounts
Full, unlimited and premier access to every product, tax wrapper and feature Chip offers
Access to exclusive events and talks with high profile investment experts
Metal membership card that unlocks airport lounges, queue jumps at every UK airport, free Uber upgrades… and much more
Coming 2023