Chase UK, the digital bank, has announced a significant alteration to its popular cashback rewards programme, doubling the rate from 1% to 2%. However, this enhanced benefit comes with a new condition: customers must now ensure a minimum monthly deposit of £500 into their Chase current account to qualify for the higher cashback.
This adjustment is effective immediately for new customers joining Chase. Existing account holders will have a grace period, with the new eligibility criteria coming into force from 1st July. Any deposits made into the Chase current account, including salary payments, transfers from other banks, or even cash deposits, will count towards the £500 monthly minimum. Crucially, internal transfers between Chase accounts will not be included in this calculation.
The 2% cashback offer is subject to a monthly cap of £15. This means that customers can earn the maximum cashback on up to £750 of eligible spending per month. For any spending beyond this threshold, no further cashback will be accrued. The cashback applies to most everyday purchases made using the Chase debit card, though certain transactions, such as cash withdrawals, gambling, or buying foreign currency, are typically excluded.
This strategic move by Chase appears to be an effort to encourage greater engagement and primary banking relationships with its customers. By requiring a regular deposit, the bank aims to attract and retain users who actively manage their finances through the Chase platform. This shift could impact how some customers utilise their accounts, potentially prompting them to consolidate their banking activities with Chase to benefit from the increased reward.
While the doubling of the cashback rate is attractive, the introduction of the deposit requirement adds a new layer of complexity for users. Customers who previously enjoyed the 1% cashback without any deposit conditions will now need to review their banking habits to ensure they meet the new criteria if they wish to take advantage of the enhanced offer. This change specifically pertains to the cashback on spending and does not affect the interest rates offered on Chase's linked savings accounts.