Modifying cashback policy by Chase, effective from Monday: Insights into potential implications for customers.
Revised Article:
Brace yourself, Chase account holders! Starting April 7th, the bank is revamping its cashback deal, making it a tad more selective.
Dealing another blow to Chase customers, who've recently seen a cut in the interest rate on the Chase Saver account, this update means current account customers can only earn cashback on specific places.
From April 7th, customers can only cash in on 1% cashback when spending on three main categories: groceries, regular transport, and fuel.
Cashback, Your Way
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The revised cashback will be limited to UK purchases and payments made in pounds sterling. Previously, cashback was handed out for UK/global transactions in any currency.
The announcement follows a series of alterations to the popular Chase bank account throughout the past few years. At one point, the account offered a combined 1% cashback and 1% interest, making it a terrific option.
In May 2023, the bank capped monthly cashback earnings at £15. This was followed by raising the minimum monthly contribution to £1,500, hiked from £500, in March 2024. Fast forward to August 2024, and the 1% interest was scrapped.
Chase's managing director for daily banking, Mark Powys, maintains that the bank's cashback offer still ranks among the most competitive in the market, providing customers with an extra edge on their daily essential expenses.
What's Changing with Chase's Cashback Deal?
From April 7th, customers can expect to earn cashback in only these selective categories:
- Groceries: including supermarkets, grocery stores, convenience stores, and specialty markets (excludes alcohol and certain food delivery services)
- Regular Transport: local and suburban passenger transportation like ferries, buses, trains, trams, and topping up Oyster cards (excludes taxis)
- Fuel: filling up at service stations, petrol pumps, and electric vehicle charging points (excludes home charging points)
Earning cashback is possible when you pay online or in-store using your debit card or contactless. However, using third-party payment services like Curve or Klarna could prevent you from getting cashback.
A second change, also starting April 7th, means customers will earn cashback only on purchases made in the UK and paid for in sterling. So, forget the cashback when swiping your card abroad.
Rachel Springall, finance expert at Moneyfacts, laments that with falling interest rates, it's disheartening to see banks tinker with the benefits on current accounts, such as cashback. She states that frequent travellers might be displeased to learn they won't earn cashback on international transactions.
JPMorgan-owned Chase reasons that the "new cashback categories align with the everyday spending areas of Chase customers." They boast that their cashback offer is "one of the best on the market - with no monthly fee, a straightforward way to earn cashback each month, and no hassle!"
Customers will still earn a maximum of £15 cashback per month, and the eligibility criteria remain the same. There's still no deposit requirement for new customers in the first year of cashback, while existing customers must deposit at least £1,500 per month.
The cashback offer has been a major hit since Chase launched in 2021. With more than 2 million UK customers sporting a Chase current account, the bank isn't losing steam anytime soon.
Should You Change Current Accounts?
If you routinely spend £1,500 a month on groceries, public transport, and fuel, you'll continue to earn the same cashback amount, as the cap remains £15 per month. If this isn't an issue, the changes won't affect you.
However, if you struggle to hit that spending target or allocate more funds to restaurants, beauty salons, or cinemas (categories excluded from cashback from April 7th), then, yes, the updates could impact you.
If Santander catches your eye, its Edge range offers 1% cashback. The Edge Up account allows users to earn up to £15, while Edge is capped at £10 per month. However, there are monthly fees of £5 for Edge Up and £3 for Edge.
Compared to Santander, Chase still offers a competitive cashback return, although it doesn't charge an account fee and requires a minimum deposit of £1,500 per month.
Powys at Chase emphasizes that their current account offers more than just cashback. It boasts an array of budgeting tools, a round-up savings feature, and a competitive-rate easy-access savings account. The Chase Saver account, for instance, yields 3% interest, which can increase to 4.75% for new customers during the first six months, if opened within 31 days of joining the bank.
If you're contemplating a bank switch, check out the top bank switching deals. You could earn up to £175 by moving your current account.
- In light of the revised cashback deal, it's crucial for personal-finance enthusiasts to review their spending patterns, as Chase account holders can now only earn cashback on specific categories such as groceries, regular transport, and fuel starting from April 7th.
- With the increasing emphasis on finance and personal-finance management, understanding the altered cashback categories offered by Chase, comprising of three main options – groceries, transport, and fuel – can help individuals maximize their savings, providing an edge in navigating their daily expenses.
