A MAJOR bank with 1.6million customers is making a “disappointing” change to an easy cash offer and Martin Lewis has issued a warning.
If you bank with Chase, you will now need to pay more into your current or savings account to get its 1% cashback reward.
PAChase customers will need to pay more into their current account to get cashback[/caption]
The bank confirmed that the minimum you’ll need to pay in is increasing from £500 to £1,500.
Writing on X, formerly known as Twitter, Martin Lewis said: “Chase is changing it terms – existing customers will need to pay in more to get the 1% cashback.”
It’s part of its new Everyday Cashback offer, which launched earlier this week.
In return, you get a maximum of £15 a month, or £180 a year.
Customers were previously rewarded with unlimited cashback, but Chase changed this offering in May 2023.
As part of the new offer, customers will now also be able to pay the cash into their Chase saver account in order to qualify for the cashback.
The bank said this will provide customers with “extra flexibility” in how to qualify for cashback.
When you will see the change will depend on when you joined Chase.
You’ll only have to meet the new threshold once your existing cashback offer ends and this will vary based on how long you’ve had your account.
If you opened a Chase back account over a year ago, you’ll have to start depositing more in the coming month.
But if you’ve had your account for less than a year, you’ll stay on your current offer until that 12 month period is over.
If you’re not sure when you opened your account, it’s worth contacting Chase’s customer service team.
Andrew Hagger, personal finance expert and founder of Moneycomms, said the move will “disappoint” some of its 1.6million customers.
“It may prove unaffordable for some people who may move their custom elsewhere,” he added.
“The bank is probably trying to get more people to use Chase as their primary bank account rather than a handy secondary account used as a vehicle to earn cashback on some of their monthly spend.”
Victoria Tilney, head of daily banking at Chase, said: “Chase’s 1% cashback on everyday debit card spending continues to be hugely popular with our customers, in large part because they can earn a bit extra on many of the things they already buy every day.”
What perks do other banks offer?
NatWest and the Royal Bank of Scotland (RBS) are offering newbies £200 to switch their current accounts to an Everyday, Reward or Premier account using the CASS.
Lloyds Bank gives a £175 cash bonus to anyone who switches to one of four current accounts.
The offer is only available to customers who switch to a Club Lloyds current account.
Overdraft debts can easily add up, so if you’re prone to slipping into the red, ensure you have an account with the lowest possible fees.
First Direct’s fee-free 1st Account offers an interest-free arranged overdraft on balances up to £250.
You can make free money from banks with great cashback perks.
The Santander Edge account pays one per cent cashback on selected household bills and travel spending.
Bear in mind, earnings are capped at £20 a month and the account comes with a £3 monthly fee.
Switch current accounts and you can access top saving rates.
For example, those opening a Santander Edge account get access to a linked saver, which pays seven per cent interest on pots up to £4,000.
Virgin Money’s Club M account costs £12.50 a month or £150 a year, but you get free worldwide travel insurance when you switch to the account.
On top of this, you’ll get free mobile phone insurance, plus UK and European breakdown cover with AA, which usually costs more than £150 a year.
Customers can sign up for the account by downloading the Chase app on the App Store or Google Play store.
You’ll need to provide a photograph of identification and the bank will run a soft credit check to assess your eligibility.
Customers will be provided with a free physical debit card which can be used fee-free when making overseas transactions and cash withdrawals.
Chase account holders also get free access to a linked savings account which currently pays 4.1% back on deposits of £1 or more.
But it’s important to remember that if you’re not a big spender you might be better off looking at moving to another bank account to take advantage of other free cash perks.
Can I avoid spending £1,500 a month to get the cashback?
You should still be able to bag the 1% cashback offer without depositing £1,500 a month.
Chase confirmed to The Sun that you can deposit in incremental amounts in one calendar month to qualify for cashback the next month.
So if £500 is more affordable for you, you could pay in £1,500 and then transfer the remaining £1,000 back out the next day.
Another way is to pay in £750, take it out the next day, and then pay it back in again to meet the £1,500 threshold.
But it’s important to remember that putting the money in the account itself don’t mean you’ll get the reward.
You’ll have to spend using your Chase card in order to start earning cashback.
Meanwhile, we reveal the best time to switch bank accounts for free cash and major moment to avoid or risk falling into the red
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