Bank makes ‘disappointing’ change to cash offering after Martin Lewis warns
A major bank with 1.6 million customers is making a “disappointing” change to a simple cash offering and Martin Lewis has issued a warning.
If you bank with Chase, you now have to deposit more into your checking or savings account to receive the 1% cash back reward.
The bank has confirmed that the minimum amount you must pay will increase from £500 to £1,500.
Martin Lewis wrote on X, formerly known as Twitter: “Chase is changing the terms – existing customers will have to pay more to get the 1% cashback.”
It’s part of the new Everyday Cashback offer, which launched earlier this week.
In return, you will receive a maximum of €15 per month, or €180 per year.
Customers were previously rewarded with unlimited cash back, but Chase changed this offer in May 2023.
As part of the new offer, customers can now also deposit the money into their Chase savings account to qualify for the cash back.
The bank said this will provide customers with “additional flexibility” in qualifying for cashback.
When you see the change depends on when you joined Chase.
You only need to meet the new threshold once your existing cashback offer ends and this will vary depending on how long you’ve had your account.
If you opened a Chase back account more than a year ago, you’ll need to start depositing more in the next month.
But if you have had your account for less than a year, you will remain on your current offer until the twelve month period is up.
If you are unsure when you opened your account, please contact Chase customer service.
Andrew Hagger, personal finance expert and founder of Moneycomms, said the move will “disappoint” some of its 1.6 million customers.
“It could prove unaffordable for some people who move their habits elsewhere,” he added.
“The bank is likely trying to get more people to use Chase as their primary bank account rather than a convenient secondary account used as a means to earn money back on some of their monthly expenses.”
Victoria Tilney, head of everyday banking at Chase, said: “Chase’s 1% cash back on everyday spend with debit cards remains hugely popular with our customers, largely because they can earn a little extra on many of the things they already buy every day. day.”
What benefits do other banks offer?
NatWest and the Royal Bank of Scotland (RBS) are offering newcomers £200 to switch their current accounts to an Everyday, Reward or Premier account using the CASS.
Lloyds Bank is offering a £175 cash bonus to anyone who switches to one of its four current accounts.
The offer is only available to customers switching to a Club Lloyds current account.
Overdrafts can easily add up, so if you tend to end up in the red, make sure you have an account with the lowest possible fees.
First Direct’s Free 1st Account offers an interest-free overdraft on balances up to £250.
You can earn money for free from banks with great cashback benefits.
The Santander Edge account pays one percent cashback on selected household bills and travel expenses.
Please note that earnings are limited to £20 per month and the account has a monthly fee of £3.
Switch current accounts and you’ll get access to the best savings rates.
For example, those who open a Santander Edge account will get access to a linked saver, which pays seven per cent interest on pots of up to £4,000.
Virgin Money’s Club M account costs £12.50 per month or £150 per year, but you get free global travel insurance when you switch to the account.
Plus you get free mobile phone insurance, plus UK and European breakdown cover with AA, which typically costs over £150 a year.
Customers can sign up for the account by downloading the Chase app from the App Store or Google Play Store.
You will be required to provide photo ID and the bank will run a soft credit check to assess your eligibility.
Customers receive a free physical debit card that can be used for free foreign transactions and cash withdrawals.
Chase account holders also get free access to a linked savings account that currently returns 4.1% on deposits of £1 or more.
But it’s important to remember that if you’re not a big spender, you might be better off moving to another bank account to take advantage of other free cash benefits.
Can I avoid spending €1,500 per month to get the cashback?
You should still be able to grab the 1% cashback offer without depositing €1,500 per month.
Chase confirmed to The Sun that you can deposit in increasing amounts in one calendar month to qualify for cashback the following month.
So if €500 is more affordable for you, you can pay €1,500 and transfer the remaining €1,000 the next day.
Another way is to pay $750, take it out the next day, and then pay it back to meet the $1,500 threshold.
But it’s important to remember that putting the money into the account itself doesn’t mean you’ll get the reward.
You must spend money with your Chase card to earn cash back.
Meanwhile, we reveal the best time to switch bank accounts for free cash and an important time to avoid or risk getting into the red
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