Chase bank account: Time running out to earn unlimited cashback

Chase Bank pays you 1% cashback on all your purchases, plus 1% interest on your balance - but, you’ll need to act fast to take advantage of it.

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(Image credit: Getty Images)

The clock is ticking if you want to take advantage of unlimited cashback from a Chase Bank current account.

While many banks have been competing for our business by launching cash switching bonuses, Chase has taken a different route by rewarding account holders when they spend.

The Chase bank account pays 1% cashback on all regular spending on your debit card each month for your first 12 months with the account, and currently that cashback is uncapped. That means that you will get 1% back on all of that normal spending, no matter how much that 1% comes to.

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But, things are changing from 9 May. All applications for the account from that date will still benefit from the cashback on offer, but there will be a cap in place; the caps means you won’t be able to pocket more than £15 a month in cashback. That’s still an excellent proposition, but if you are a big spender on your debit card then you’ll potentially be missing out on further rewards if you don’t apply for the Chase current account by 8 May.

The Chase account also offers a nice alternative to cashback credit cards, should you want to earn cashback on your spending without wanting to take out a new credit card in order to do so.

Can I earn cashback on all of my spending with the Chase current account?

The emphasis on the Chase cashback offer is on everyday spending. You can earn cashback on almost everything - from your daily coffee, train tickets to your weekly groceries shopping.

As a result, you won’t earn cashback on big, out of the ordinary purchases that you make with your debit card.

Exclusions include spending on things like:

  • College and university fees
  • Estate agent fees
  • Buying from art galleries or antique shops
  • Cash withdrawals
  • Gambling transactions
  • Cryptocurrencies
  • Tax payments

Earning interest with the Chase current account

The cashback isn’t the only selling point to the Chase current account; you can also earn interest on in-credit balances.

Chase recently introduced an interest rate of 1% for current account balances. What’s more, this rate is paid on the entirety of your balance, unlike some accounts which will only pay interest on the first £2,500 or so in your bank account.

There are no minimum monthly deposit or direct debit requirements and no fees, either.

The bank also offers a savings account, linked to its current account, which pays 3.1% interest, as well as 5% interest on its round-up account.

What are other digital banks offering?

Digital banks, or app-based banks, have grown in popularity over the past few years.

Though these don’t have physical branches, many users are switching to them for the convenience they provide.

Monzo pays 3.20% on its Instant Access Savings Pots, and you don’t need a minimum deposit. Additionally you can withdraw your money at any time, but it will take a working day for it to hit your account.

Starling Bank allows you to save between £2,000 to £1,000,000 into a one-year fixed saver with a rate of 3.25%. It’s worth shopping around for the best one-year fixed savings accounts, as some of them are offering rates of over 4.50%.

And while Atom Bank does not operate a current account, its one year fixed saver pays a rate of 4.55%.

No digital banks pay cashback on debit card spending, though some regular high street banks do.

For example, Santander has the Edge account which pays 1% cashback on debit card spending at supermarkets and on travel. It also pays 1% cashback on certain household bills paid by direct debit.

John Fitzsimons

John Fitzsimons has been writing about finance since 2007, and is a former editor of Mortgage Solutions and loveMONEY. Since going freelance in 2016 he has written for publications including The Sunday Times, The Mirror, The Sun, The Daily Mail and Forbes, and is committed to helping readers make more informed decisions about their money.