Chase is set to increase the cashback offered on its credit and debit cards but the criteria may make it harder to qualify for the perks.
The JP Morgan-owned bank has grown market share in recent years with a popular cashback card offer, although its criteria and rates have been scaled back in the past.
Last year, Chase announced that customers will only be able to earn 1% cashback on debit card spending across three categories: groceries, everyday transport and fuel.
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The cashback was also restricted to purchases made in the UK and paid for in pounds sterling rather than worldwide.
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But now the bank appears keen to attract more users with a higher cashback rate of 2%, but you will need to work harder to get it.
What is the new Chase cashback offer?
From 1 July, new and current Chase customers will be able to earn 2% cashback on spending.
Plus, a new restaurant and cafes category has been added, meaning you will earn money when paying for meals out as well as on groceries, fuel and everyday transport.
There are no monthly fees and the cashback can be earned using a Chase debit or credit card.
Is the Chase cashback offer any good?
The cashback terms are technically better than what customers currently get, especially with the extra restaurant category.
Cashback has been increased from 1% to 2% and the monthly amount you can earn will be capped at £20 rather than £15.
This means you could earn up to £240 per year from cashback with Chase instead of £180.
But, there is a catch. Currently, you only need to pay in a minimum of £1,500 into either your Chase current or savings account to qualify for the cashback.
But from July, customers will need to make 15 or more card transactions or direct debits each month and maintain a balance of £1,000 across their Chase saver accounts.
This means you can no longer just put £1,500 from your income into the account each month and will need a Chase savings account.
That requires a bit more work but Chase does currently offer a decent easy access savings account paying 4.5%.
You need to hold £1,000 in a Chase saver account for the whole month to qualify for 2% cashback the next month.
Customers can’t deposit £1,000 and then move it out but you can hold a combined total of £1,000 across any Chase saver accounts.
How does it compare to other cashback cards?
The annual amount of cashback you can earn with Chase is hard to beat.
But there are other cashback current accounts on the market that are more flexible.
The new Zopa Biscuit current account pays 4% cashback up to £80 per year on any direct debits paid from the account. Plus, customers can access a 7% regular saver account with £300 per month.
Alternatively, Santander Edge pays 1% cashback on bills paid through its account such as council tax, energy and broadband. This is capped at £10 per month and there is a £3 monthly fee. Santander is also offering a £180 switching bonus at the moment.
Another option is the American Express Cashback Everyday Credit Card.
It pays 5% cashback on spending for the first five months, up to a maximum of £125.
You can then earn 0.5% cashback on first £10,000 spend.
