Chase is boosting its cashback rate to 2% from 1 July, but the JP Morgan-owned bank is simultaneously making it harder for customers to qualify for the perk.
In a move that will affect both new and existing customers, the higher rate comes with a fresh set of conditions that go well beyond the current requirement of simply paying in £1,500 a month. Anyone hoping to earn the maximum £20 a month – up from the current £15 cap – will need to meet two new criteria: making at least 15 card transactions or direct debits each month and maintaining a minimum balance of £1,000 across Chase saver accounts for the entire month.
The changes mark a significant shift from the existing setup, where customers only had to deposit £1,500 into either a Chase current account or savings account to unlock 1% cashback on spending in three categories – groceries, everyday transport and fuel. From July, that single-step qualification disappears, replaced by a far more demanding regime that explicitly requires customers to hold money in a savings product and to use the account more actively.
What the new cashback offer looks like
From 1 July, Chase customers will earn 2% cashback on spending, double the current 1% rate. A new category – restaurants and cafes – has been added, meaning the cashback now applies to meals out as well as groceries, fuel and everyday transport. The monthly cashback cap rises from £15 to £20, potentially yielding £240 a year instead of £180. There are no monthly fees, and the cashback can be earned using either a Chase debit card or a Chase credit card.
On paper the deal is clearly better, but the headline improvement masks a substantial barrier.
The new, more stringent criteria in detail
Currently, customers qualify for cashback by paying in at least £1,500 a month into their Chase current or savings account. From July, that will no longer be enough. Instead, customers must:
– Make 15 or more card transactions or direct debits each month.
– Hold a balance of at least £1,000 across their Chase saver accounts for the whole month.
The savings requirement means customers cannot simply deposit £1,000 and then withdraw it. The £1,000 must stay in place for the entire calendar month to qualify for 2% cashback the following month. Chase does allow customers to hold a combined total of £1,000 across any number of its saver accounts, but the money cannot leave those accounts during the qualifying period.
Chase currently offers an easy-access savings account paying 4.5%, so there is an incentive to leave the money there. But the new rules effectively force customers to maintain a minimum savings balance with the bank – a step up in commitment compared with the current requirement, which simply demanded a monthly pay-in of £1,500 without any ongoing balance condition.
The transaction requirement also adds friction. Customers who previously used the Chase account only to receive their salary and then transfer money elsewhere will now need to use the card or set up direct debits at least 15 times a month to qualify.
How Chase compares with other cashback accounts
Despite the tougher criteria, the annual cashback potential with Chase – up to £240 – is hard to beat among current accounts. However, several competitors offer more flexible arrangements.
The Zopa Biscuit current account pays 4% cashback on any direct debits paid from the account, up to a maximum of £80 per year. Zopa also offers a 7% regular saver account capped at £300 a month.
Santander Edge pays 1% cashback on bills paid through the account – including council tax, energy and broadband – but caps the cashback at £10 a month and charges a £3 monthly fee. Santander is currently offering a £180 switching bonus.
For those who prefer a credit card approach, the American Express Cashback Everyday Credit Card offers a 5% introductory rate on spending for the first five months, up to a maximum of £125. After that, the rate drops to 0.5% on the first £10,000 of spending each year.
The new Chase offer raises the bar for earning rewards, but for customers willing to meet the tighter conditions – particularly the £1,000 savings balance and 15 monthly transactions – the 2% rate and the inclusion of restaurant spending make it one of the most generous uncapped cashback deals on the market.
