JP Morgan-owned bank Chase has been one of the top app-based current accounts on the market due to its attractive cashback and overseas spending perks.
But two years since launch, the provider is slowly making changes to how customers qualify for its perks, which will impact the two million customers who have a Chase account.
It comes amid its famous 1% cashback offer being extended for another year last February- though the 12-month term is coming to an end for customers.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Chase's new 'Everyday Cashback' offer now replaces this, still offering 1%, but with some changes to the eligibility.
Latest Videos FromMoneyWeek
The account gives customers cashback for everyday spending including travel, entertainment and supermarket shopping.
Find out if Chase still ranks up to be one of the best app-based bank accounts with its changes, and what the alternatives are.
Changes to the Chase current account
The three main perks with the Chase bank account were its cashback perk, savings rate and no fees for using your card abroad.
But what has changed and which perks remain the same?
Cashback
Chase launched a new cashback offer on 28 February which means to be eligible for 1% cashback on spending you now need to pay in a minimum of £1,500 per month into your account- up from £500.
But, the new rule will take effect depending on when you open your account.
- Those who’ve held a Chase account for more than a year will be required to abide by the new cashback rules.
- If you opened your Chase account less than a year ago, the £500 minimum deposit rule will stay put until your year is up. After a year, your eligibility will change to a minimum £1,500 pay-in.
- New customers who sign up to Chase will get cashback for 12 months with no monthly deposit required.
The offer permits up to £15 per month in cashback.
You can check on the Chase app which cashback offer you are on by tapping ‘rewards’ and the end of the ‘home’ tab.
Savings rate
There is no change to the Chase savings rate, which offers 4.1% on its easy-access saver. But it isn’t the best rate on the market.
Currently, you can earn up to 5.2% AER on an easy-access saver with a reputable bank.
For example, Cahoot (division of Santander) is offering 5.2%, and Ulster Bank is also offering 5.2%.
Existing Santander customers can also bag the 5.2% rate for a limited time on its easy-access saver- but this rate is set to be dropped in the coming months.
Spending abroad
There are no changes to Chase’s spending abroad rules. You can still spend and withdraw cash abroad, with no fees.
If you make any purchases in a local currency, the Mastercard exchange rate will be applied which is competitive compared with the rest of the market.
What are the alternatives?
Whilst Chase is making a substantial change in its cashback offer, it remains the best deal on the market.
The Amex Cashback Everyday Credit Card does beat Chase in the short-term with its limited offer- currently giving new customers 5% cashback on up to £125 per month for the first five months.
That’s up from £100 per month for the first three months only.
But after five months, the offer reverts back to a minimum £10,000 spend to get 1% cashback or 0.5% cashback on balances under £10,000- in which case the Chase cashback offer wins.
Like the Chase account, this Amex credit card has no annual fee.
The Amex 5% offer is only around until 9 April and cashback with Amex is paid after a year. But remember, it’s a credit card and you will only qualify for the cashback if you pay your balance off in full each month.
Plus, if you’re on the hunt for a current account or debit card, then it's best to steer away from Amex credit cards.
Alternatively, if you’re willing to pay a fee to hold a current account, Santander Edge offers 1% cashback on household bills of up to £10 per month.
Though it still doesn't rank up to £15 cashback with Chase.
The Edge account also doesn’t charge a fee when spending abroad.
Plus, the Santander Edge account has a £3 monthly fee and it requires you to pay in £500 per month.
