Changes to the Chase cashback offer start in April
If you are a Chase customer, you'll likely be enjoying the 1% cashback on your purchases, which you'll receive for 12 months after activating your account. I know I have and have earned a decent amount of cashback over the last year, but I have been disappointed that the offer will soon end for me as I come up to my one-year anniversary as a Chase customer in May this year.
So I was chuffed to hear that Chase has announced that customers can earn 1% cash back on all eligible everyday debit card spending for an additional 12 months after the expiry of their initial offer as part of its new monthly cashback offer, which was announced recently.
However, this extended offer is different from the current offer and isn't a straightforward extension of the current deal.
Under the new monthly cashback offer - which is available to existing customers after their initial 12-month offer - customers will need to pay £500 into their Chase current account (excluding internal transfers) each month to qualify for cashback in the following month. Cashback will also be capped at £15 per month, rather than the current unlimited cashback being offered.
The new cashback offer works a month behind in that to be able to earn cashback in April (assuming your 12-month initial cashback offer has already expired), you need to have deposited £500 into your Chase account in March to be able to earn cashback in April, then to earn cashback in May, you'll need to have deposited a minimum of £500 in your account in April, and so on.
The new offer will come into effect for existing customers from the 1st of April, 2023. Customers due to come to the end of their initial 1% cashback offer at the end of February or in March can continue to earn 1% cashback until the 31st of March, so they can seamlessly take advantage of the new offer.
New customers joining Chase will continue to enjoy its introductory 12-month 1% cashback offer on eligible everyday debit card spending without depositing into their Chase account. For customers joining Chase from the 1st of May 2023, cashback will be capped at £15 per month.
So for anyone only using their Chase account for the cashback element, perhaps only transferring cashing their Chase account when they are making a purchase, rather than using the account as their primary bank account, they'll need to start adding £500 a month to their account to be able to earn the new £15 a month cashback. For some, this might not be worth the hassle of moving all their banking to Chase, as the maximum £15 a month (£180 a year) means you'll need to have spent £1,500 a month through **qualifying retailers to earn that maximum £15 a month, which cant earned through direct debits for mortgages, loans, council tax etc., it needs to be through debit card spending, which for many people isn't achievable.
Realistically though, many standard current accounts don't offer any cashback on purchases made from the accounts. So if you aren't earning cashback currently, you don't have anything to lose, only gain, as if you're paying in £500 a month, you'll earn some cashback on purchases made, and even if that's not the maximum £15 with of cashback every month, it's still better than nothing!
In addition to this revised cashback scheme, Chase will begin paying 1% interest on current account balances starting in April 2023. There will be no minimum monthly deposit or direct debit requirements, and will it apply across all Chase current accounts.
Interest will accrue daily and be paid on the first day of each month. This is an added bonus for those customers who move to Chase as their primary bank current account.
The new cashback deal is set to last a year but will likely be extended next year, going by Chase's track record of extending cashback promotions. If any changes to the scheme are made, Chase will let you know 30 days before it happens.
** Cashback cannot be earned on the following payment types:
Antique shops, including repairs and restoration
Art dealers and galleries
Bail and bond payments
Bank fees such as product fees, promotional merchandise, financial consultations and loan fees
Car and van dealers - new and used sales, services, repairs, parts and leasing
College and university fees
Government services not classified elsewhere
Insurance sales, underwriting and premiums
Motor home, camper and trailer dealers
Motorcycle shops and dealers
Nursing and personal care facilities
Professional and financial services
Real estate agent and management fees
Securities — stocks, bonds, commodities and mutual funds
Stamp and coin stores
Travellers Cheques and foreign currency
Information is correct as of 25th March 2023.