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Chase to pay current account interest and extend cashback perk, but there’s a catch

Paloma Kubiak
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Paloma Kubiak

Chase has announced it will start paying in-credit interest in April, while it will also extend its debit card cashback beyond the first year. But to get it, you’ll need to meet new rules.

The digital challenger said it will introduce interest of 1% AER on current accounts for new and existing customers in April.

There will be no fee, minimum monthly deposit or direct debit requirements as part of this move. Interest will accrue daily and will be paid on the first day of each month for all current accounts held by customers.

Chase confirmed this will apply automatically so customers don’t need to do anything to get it.

However, as part of changes to the debit card spending cashback, Chase will bring in a £500 minimum monthly pay-in amount and cashback will be capped at £15 per month.

Now, exactly if and when these apply depend on when you joined (or join) Chase and when you activated (or activate) the debit card cashback offer which pays 1% back on eligible spends for the first 12 months from sign up.

But in a nutshell, existing customers who want to continue to earn debit card cashback after the initial 12-month period will need to pay in £500 each month and the cashback will be capped at £15 a month.

For customers still within their initial 12-month period, there’s no change just yet.

For new customers signing up to Chase from 1 May, there’s no requirement to pay in the £500 a month, but the £15 cashback cap applies.

Minimum £500 monthly pay in and £15 cashback cap

Here’s the full breakdown of how the changes will affect you:

Early sign-ups: Chase launched in the UK in September 2021. In August 2022 just ahead of its first anniversary, Chase confirmed it would extend the 1% cashback for those ‘early doors’ customers who joined and activated their cashback offer before 28 February 2022. The extension lasts until 28 February 2023.

For existing current account users whose 12-month cashback deal expires in February or March 2023, Chase confirmed you will continue to earn 1% cashback until 31 March 2023.

However, if you wish to continue to earn the debit card cashback from 1 April, you will need to pay in £500 in March to qualify for the cashback the following month.

This £500 balance excludes internal transfers so won’t work if you transfer cash from your Chase Savings to the current account. It can be paid in a single lump sum or a number of lump sums. Further, the cashback will be capped at £15 a month from 1 April.

Customers who activated cashback after 28 February 2022: These customers will continue to receive the introductory 1% cashback offer for their respective 12-month period. Once the term ends, you will then be subject to the minimum £500 monthly pay in and £15 cap if you want to continue earning the 1% cashback on eligible debit card spends.

Customers who activate cashback between now and 30 April 2023: You will be able to earn 1% cashback for a year without needing to deposit the £500 or have the cashback capped at £15 a month. After the year, then the minimum £500 monthly pay in and £15 cap apply.

New customers who activate cashback from 1 May 2023: Here, these customers will receive the introductory 12-month 1% cashback offer on eligible debit card spends. While they won’t need to deposit £500 a month, the cashback will be capped at £15 a month which Chase said equates to a person spending £1,500 a month, earning £180 over the course of a year.

Shaun Port, managing director for everyday banking at Chase, said: “We’re expanding our rewards programme so our customers can continue to enjoy cashback on their everyday debit card spending. At a time when everyone wants their money to work harder, the introduction of 1% interest on current accounts adds another way in which customers can be rewarded for banking with Chase.”

Chase continues to offer 5% AER on round-ups, where spends are rounded up to the nearest pound. Just recently it increased the interest available on the Chase Saver – linked to its current account – from 2.7% AER to 3% AER from 13 February. Chase customers can also earn cashback on overseas spends without any fees.

Earlier this week it confirmed it was going to start reporting information to credit reference agencies, starting with TransUnion.