JP Morgan introduces a new “Chase” bank account that pays 1% cashback and 5% interest

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    Below we summarize the key features of Chase and how they compare. The new account, which does not have a monthly fee, is currently only available on an invitation basis. If you haven’t received an invitation yet, you can join the waiting list on the Chase website, where you should be invited to open the account ahead of the expected broader rollout in early November.

    If you don’t want to wait until then, our guide to the best bank accounts has a detailed breakdown of the top current accounts for cashback, overdrafts and more, plus various cash incentives up to £ 130 available to switch.

    Chase’s key features include 1% cashback for one year and 5% interest

    Chase is only available via app, which means you need a smartphone to open and operate it. In addition, you can make purchases with your debit card (for privacy reasons there is no card number printed on it, but you can always view it in the Chase app), but you cannot set up direct debits yet. However, JP Morgan plans to make this possible by the end of the year.

    Cash in Chase checking accounts is protected by the Financial Services Compensation Scheme (FSCS) up to a total of £ 85,000. However, it is unclear whether the money stored in Chase’s linked savings account is also FSCS protected – we asked Chase and will update this story when we know more. Here is a summary of Chase’s key features:

    • It pays 1% cashback on most purchases for 12 months. You can transfer cashback from the “Rewards” section of the Chase app to your main account at any time. The 12 months start from the date you activate cashback in the app, so make sure you do this to start earning. Certain purchases are not eligible for cashback, such as: B. Gambling, but a full list of exclusions can be found on the Chase website.
    • It pays 5% AER variable interest on “rounded up” savings. If you choose to take advantage of this benefit, Chase will automatically round up every purchase you make to the nearest pound, saving the difference. For example, if you spend £ 9.55 in a supermarket, Chase rounds that up to £ 10 and saves 45p in a separate account. AER of 5% variable interest is paid on these amounts. This beats the current top savings rates, although it only applies to amounts you have saved by rounding up, which means you cannot top up it with extra cash.

      The interest is calculated daily and paid into the savings account on a monthly basis, after one year the entire balance will be transferred to your main balance, but you can withdraw money beforehand without penalty. This feature has no time limit, so you can keep saving after the first year – but because the interest rate is variable, the amount of interest you receive may change in the future.

    • It offers free debit card usage abroad. You will not be charged any fees for purchases or cash withdrawals made outside the UK. While this isn’t unique to a challenger bank – competitors like Monzo and Starling offer it too – it’s a nice feature if you’re planning on going abroad. For more information on the best vacation debit cards, check out our travel card guide.
    • It gives you the option of dividing your checking account into different “glasses”. These jars have their own separate checking account number and you can use your debit card to dispense from an account of your choice by choosing which account to use for payments through the app. The idea is to help people budget and save.

    Chase does not currently have an overdraft facility, but we have been told it would like to offer loan products later.

    Comparison of Chase

    Chase’s cashback and round-up savings features are nifty, but you need to do your research and see if it is the best account for you based on your needs. It is crucial that Chase does not offer any incentives to switch. So if you’re looking for cold hard cash, there may be better alternatives. For example:

    • You can snap up £ 130 when you switch an existing checking account to Santander. Santander is currently paying both new and existing customers £ 130 to switch to their 123 Lite account, which offers 1% to 3% cashback on household bills. While the account does charge a £ 2 / month fee, the change wipes it out, and those with medium to large bills can earn anywhere from £ 40 to £ 80 / year after the fee. Of course, there’s no reason not to switch to Santander, but you could also open a Chase account and use Santander Lite to pay any bills that qualify for cashback and chase for all other purchases to maximize cashback.
    • You can get £ 100 when you switch to Nationwide – and some can get a 0% overdraft as well. Nationwide offers £ 100 bills of exchange for a number of its accounts – the standout is the Nationwide FlexDirect toll-free which offers a 0% overdraft for a year up to £ 2,750 depending on creditworthiness. You can also earn 2% interest on up to £ 1,500 in the first year.
    • Other exchange offers include £ 110 cash and a £ 30 Uber Eats voucher. Check out our guide to the best bank accounts for full details.

    However, when it comes to cashback, Chase is a solid choice. An alternative option includes:

    • The American Express Platinum Cashback Everyday credit card, which pays a higher cashback of 5%, but only for purchases in the first three months up to a maximum cashback value of £ 100. You must also spend at least £ 3,000 a year to earn any Cashback, and after the first three months the rate drops to 0.5% unless you spend more than £ 10,000 in the year – only then does it equal the 1% that Chase pays. Amex cards aren’t accepted everywhere either, and if you’ve had one in the past two years you won’t be eligible for the 5% introductory bonus.

      If you’re planning a big purchase and you know you’re hitting the £ 3,000 trigger, Amex may be your best option – although it might be worth using Chase after the first three months as it won’t be worth £ 10,000 each Spending a year will earn a higher cashback rate, even if it’s only for a year. For more credit card rewards, including Nectar Bonus Points worth € 264 and an Amazon voucher worth € 30, see our complete guide to credit card rewards.



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