Chase current account review: new bank will pay cashback on debit card spending

Chase current account review: new bank will pay cashback on debit card spending

Chase pays 1% cashback when you shop with your debit card and lets you earn 5% interest on rounded-up savings.

John Fitzsimons

Banking and Borrowing

John Fitzsimons
Updated on 4 August 2023

If you fancy getting something a little extra from your bank account, then the Chase current account could be worth considering.

It pays cashback on spending, lets you earn interest on your in-credit balances and helps you avoid rip-off fees while abroad.

Let's take a closer look at the Chase account to help you decide whether it's right for you, starting with the cashback element.

Earn up to £15 cashback a month

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, provided you pay in a minimum of £500 a month.

Unfortunately, the bank recently capped the maximum amount new customers can earn at £15 a month. 

Given that you'd need to spend £1,500 a month to hit the limit it probably won't have much of an impact for most customers, but it was still sad to see the last uncapped cashback current account offer on the market pulled.  

A more practical cashback offer

One thing that definitely works in Chase's favour is that it's far more straightforward than rival offers.

Often, current accounts will promise a higher rate of cashback ‒ perhaps as high as 15% ‒ but only when you spend with specific partner retailers.

Others will only pay cashback on specific direct debits, for example for your energy and broadband bills.

So while the Chase deal has a lower cashback rate, the fact you can enjoy it everywhere opens up the potential for it be more rewarding.

You can earn cashback whether in person or online, and on international spending as well as within the UK.

If cashback is all you care about, we should point out that you could earn more with a rival current account. We've rounded up the best accounts for earning cashback here

Earn up to 5% on your savings

Any money you hold in your Chase current account will earn 1% interest. That's nothing to write home about but it's still a lot better than many of the High Street banks, which effectively pay no interest at all (although you can earn up to 5.12% on current account balances).

Of far more interest to savers will be the linked easy access Saver Account, which pays 3.8% on balances of up to £500,000, rising to 4.1% on 14 August.   

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.

See our roundup of the best current accounts for spending abroad

loveMONEY's verdict: a great all-rounder

There’s a lot to like about the Chase account.

It may not be table-topping in any one area, but it's a great all-round offering. 

You can earn a decent rate of cashback, pocket some interest on your cash and spend abroad without racking up extortionate charges.

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 great all-round account that provides welcome competition to other banks. 

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