Home Money Chase hikes minimum pay-in for cashback deal to £1,500 a month

Chase hikes minimum pay-in for cashback deal to £1,500 a month

by Elijah
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Changes: Soon, Chase customers will have to pay £1,500 per month into the account to get the 1% cashback.

Chase Bank has made another change to its 1 percent cash back checking account offering, creating a bigger hurdle to overcome.

The cashback deal has been immensely popular since the US giant launched in Britain in 2021, with millions opening the account to get it.

The digital bank, part of the American giant JP Morgan, has always offered a 1 percent cashback offer on the account, which previously had no limit.

Last year, it created a £15-a-month cap on the amount of cashback that could be claimed, and now it has added another caveat.

Changes: Soon, Chase customers will have to pay £1,500 per month into the account to get the 1% cashback.

Changes: Soon, Chase customers will have to pay £1,500 per month into the account to get the 1% cashback.

To get the cashback offer, customers must pay £1,500 per month. Previously, £500 per month had to be paid into the account in order to pay the refund.

Experts say the new monthly amount is likely a move to entice more customers to treat it not as a secondary account, but as their primary account.

Those who have had Chase for more than a year will soon need to meet the criteria to continue receiving the refund.

Those who have had an account for less than a year will have to pay £1,500 per month after the 12-month period ends.

Those who sign up today will receive the refund without needing to pay a monthly amount into the account and then after a year the £1,500 per month will be applied.

For the first time, customers will be able to pay £1,500 a month into a Chase round-up savings if they wish instead of into their current account to qualify for the cashback. You must have a Chase checking account to open a round-up savings.

In order to pay £1,500 into the account each month, many will have to receive their salary into their Chase account, making it their main account.

James Blower, founder of the website Saving Guru, says: “Chase is likely to find that many of its customers use it as a secondary account, rather than a primary account.”

‘That is, they keep their existing bank account but transfer some money to Chase to spend on the card, using it like a prepaid card.

‘This is something other new entrants, such as Monzo, found in the early days.

“This change is likely designed to encourage more customers to get paid and use Chase as their primary account, as well as higher-net-worth savers who can meet the threshold by placing larger balances in Chase, which they otherwise current rate of 4.1 percent are potentially very profitable for them.’

More than a third of Brits now have a digital-only bank account, but exclusive research for Finder’s This is Money found that many people use them as a secondary account, rather than their main current account.

In the first nine months of 2023, digital banks suffered a total loss of more than 25,000 accounts through the switching service.

Monzo lost almost 20,000 more customers than it gained, while Starling lost 4,631.

By comparison, some of the big banks have seen too much change. For example, NatWest gained 59,158 switches between July and September 2023, and HSBC (which includes First Direct) 25,037.

Digital bank Challenger has attracted millions of customers by offering free spending abroad, Finder says.

While many customers opened a Chase account to take advantage of their cash back offer. Customers can earn up to £15 per month with Chase’s monthly cashback offer, which equates to up to £180 cashback over the course of a year.

For some, the new minimum monthly reimbursement payment may be too much.

Andrew Hagger, founder of the MoneyComms website, says: This move by Chase will be a blow to some of its customers with a higher credit funding requirement of £1,500 a month, and may prove unaffordable for some people who end up switching elsewhere. .

Victoria Tilney, director of everyday banking at Chase, said: “Chase’s 1 percent cash back on everyday debit card spending continues to be very popular with our customers, in large part because they can earn a little more on many of the things they already buy. every day.

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