Chase limits current account holders' access to cashback

Chase Bank will be reducing the amount of its cashback offer as of April 7

What's changing is explained.

Current account holders will only be able to earn money in specific locations as Chase Bank revamps its well-liked cashback offer next month.

The recent interest rate reduction on the Chase Saver account is yet another setback for Chase customers.

Customers will only be eligible to receive 1% cashback on debit card purchases made in three categories starting on April 7: groceries, regular transportation, and fuel.

Additionally, only UK-based purchases made with pounds sterling will be eligible for cashback. Cashback is currently given on all purchases made in the UK or abroad.

The announcement marks the most recent in a series of modifications made to the well-known Chase bank account in recent years. The account was a very alluring choice because it had previously paid 1% cashback and 1% interest.

The maximum amount of cashback you could get was 15 per month in May 2023. The bank then raised the required minimum monthly contribution to receive the cashback from 500 to 1,500 in March of last year.

The 1% interest was dropped in August 2024.

Chase's cashback program is still "one of the most competitive on the market, enabling customers to earn a little extra on many of the essential things they already buy daily," according to Mark Powys, managing director for daily banking.

How is the cashback offer from Chase changing?

Chase customers will only be able to earn cashback on three categories starting on April 7. They are as follows.

Supermarkets, supermarkets, convenience stores, specialty markets, and other food stores are examples of groceries. Stores selling alcohol and some food delivery services, such as Deliveroo, are excluded. Daily transportation includes ferries, buses, charter and tour buses, National Rail, Eurostar, Edinburgh Trams, and London transportation, including replenishing oyster cards. Cabs are not included.) Fuel (service stations, gas pumps, and charging stations for electric vehicles). excludes: charging points at home) Cashback can be obtained when making payments in-person or online with a contactless card or a real debit card. If you pay using Curve or Klarna, though, you might not receive cashback.

Additionally, starting on April 7, Chase customers will only be eligible for cashback on purchases made in the UK and paid for with sterling. Therefore, if you use your card while traveling overseas, you won't receive any cashback.

According to Rachel Springall, a finance specialist at Moneyfactscompare . co . uk, "it's disappointing to see banks tweak the benefits on current accounts, such as cashback, at a time when interest rates are falling," as she tells the BFIA.

She goes on to say: "If Chase customers wish to maximize the 1 percent cashback that is applied each time they spend, they will now need to pay close attention to how they use their debit card for regular purchases. The news that they will no longer receive cashback for purchases made outside of the UK may also disappoint frequent travelers.

"The new cashback categories align with the typical daily essential spending areas of Chase customers," the JPMorgan-owned bank claims.

It goes on to say that its cashback program is "one of the best on the market with no monthly fee, and a straightforward way of earning cashback each month."

Consumers will still receive 1% cashback, up to a monthly maximum of 15%.

The eligibility requirements are still the same: new customers in their first year of cashback are exempt from the deposit requirement, while current customers must still deposit at least £1,500 into their Chase accounts each month. Deposits into Chase Saver accounts may fall under this category.

Since Chase's 2021 launch, the cashback offer has been incredibly popular. Over two million people in the UK are currently clients of the bank.

Does my current account need to be changed?

Since cashback is capped at 15, you will still receive the same amount if you spend at least 1,500 on groceries, public transportation, and gas. Therefore, you won't be impacted by the change.

The changes will, however, impact you if you spend less on these categories and more on dining establishments, beauty parlors, and movie theaters (which will no longer be eligible for cashback as of April 7).

Santander Edge is the current account that pays the most cashback, according to Which? Customers of Santander Edge Up can earn up to 30 cashback per month, while those of Santander Edge are limited to 20. Both accounts pay 1 percent cashback.

These accounts do have a monthly fee, though, which is three for Edge and five for Edge Up.

Conversely, there isn't a monthly fee associated with the Chase account.

According to Springall, some people might find Santander to be a good choice, and it might be worthwhile to consider credit cards that offer cashback as well. "In general, Chase is still offering a competitive return of cashback of up to 15 each month, as it doesn't charge an account fee and just requires users to put 1,500 into the account each month," she continues.

Chase's Powys notes that in addition to the cashback offer, "Chase's current account offers a competitive-rate easy access savings account, interest on small change round ups through Chase's round up account, and a range of money management features."

Interest on the Chase Saver account is three percent. For new customers, this can be increased by 1 percent for the first six months if they open an account within 31 days of joining the bank.

Check out the best bank switching offers if you're considering moving to a different bank or building society. Right now, you can receive up to £175 for doing so.