If you fancy getting something a little extra from your bank account, then there’s a new account worth considering.
JP Morgan Chase has just launched its new digital bank – simply called Chase – in the UK, with the promise of rewarding you when you spend through both cashback and helping you to build up a savings pot.
Earn cashback everywhere you shop
One of the big appeals of the fee-free Chase current account will be the ability to earn cashback when you spend with your debit card.
Account holders get 1% cashback on all of their spending with the card for the first 12 months, irrespective of where they spend that money.
What’s more, they can earn that money in person or online, and on international spending as well as within the UK.
Now, earning cashback from your current account isn’t in and of itself new, but the Chase offer is a little different to the norm.
Often current accounts will promise a higher rate of cashback ‒ perhaps as high as 15% ‒ but only when you spend with specific partner retailers.
The Chase deal has a lower cashback rate, but the fact you can enjoy it everywhere opens up the potential for it be more rewarding.
The other way that accounts sometimes pay cashback is based on specific direct debits, for example for your energy and broadband bills, though this isn’t on offer from Chase.
Check out our guide to earning cashback from your current account.
Earn 5% on rounded up savings
Another nice feature of the Chase account is the way that it can help you save money while spending with it.
Your purchases can be rounded up to the nearest £1, with the change being deposited in a savings account where it will earn a rate of 5% for 12 months.
This is a feature that’s becoming more common, particularly among the new breed of app-based banks, and it strikes me as a really smart way to get people to start building a savings safety net, without having to actually change their usual habits.
Of course, the more that you spend with your card, the quicker you’ll build up that savings pot, so it’s something that will suit those who keep their spending to their debit card rather than using a credit card.
We've highlighted some of the best accounts that help you save without realising it.
No fees when spending abroad
As with other challenger accounts launched in the last few years, Chase is designed to appeal to those who want the ability to spend overseas on their card without being punished for it.
That means no fees when using your card abroad, whether that’s for direct purchases or when making a withdrawal from an ATM.
It works as a second account
What often happens with bank accounts that offer something compelling, whether that’s cashback or a decent overdraft, is that you have to make it your main account.
That means moving over your direct debits and commit to paying in a certain amount each month.
So it’s interesting that this isn’t the case with Chase.
Instead, you can start earning cashback on your debit card spending without having to meet minimum deposit levels each month or even move over a single direct debit.
As a result, it’s a cracking option for anyone that needs to keep two accounts, perhaps because they have a joint account set up with their partner for the main household bills.
Chase bank account: loveMONEY's verdict
There’s a lot to like about the Chase account, and for certain types of bank account customers, it could be a smart choice.
The fact that you can earn on all of your debit card spend is going to be really attractive to those who don’t use credit cards, while you can also start building up a savings pot with virtually no effort involved.
The fact that you can take advantage of its features without actually having to make it your main account is also a big selling point.
It means you can give it a go with little pressure involved ‒ if you really like the account and additional money management features of the app, then you can move over all of your direct debits.
Equally, if you don’t get on with it, you haven’t lost anything.
It won’t suit everyone, of course.
As someone who does all of my spending on a credit card, I’m better off with an account that pays cashback on my direct debits than my debit card spending, for example.
And the fact it's a digital bank that means you'll have to manage it through a smartphone will put some people off.
But overall, it's a good all-round account that provides welcome competition to other banks.