JP Morgan launches new ‘Chase’ bank account that pays 1% cashback and 5% interest
Below, we put together the main features of Chase and how they compare. The new account, which does not come with a monthly fee, is currently only available by invitation only. If you haven’t received an invitation, you can sign up for the waitlist on the Chase website where you should receive an invitation to open the account ahead of its wider launch slated for early November.
If you don’t want to wait until then, our guide to the best bank accounts has a detailed breakdown of the current top accounts for cash backs, overdrafts and more, along with various cash incentives of up to £ 130 available. for the change.
Key Chase features include 1% cash back for one year and 5% interest
Chase is an app only, which means you’ll need a smartphone to open and use it. Additionally, while you can make purchases on your debit card (there won’t be a card number printed on it for privacy reasons, but you can see it anytime in the Chase app), you cannot set up direct debits yet, although JP Morgan plans to allow this by the end of the year.
Cash held in Chase’s checking account is protected by the Financial Services Compensation Scheme (FSCS) up to a total of £ 85,000. However, it’s not clear whether the money saved in Chase’s linked savings account is also FSCS-protected – we’ve asked Chase and we’ll update this story when we know more. Here’s a look at the main features of Chase:
- He 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 balance whenever you want. The 12 months start from the date you activate cashback in the app, so be sure to do that to start making money. Some purchases are not eligible for cashback, like gambling, but you can see a full list of exclusions on the Chase website.
- He pays 5% AER variable interest on “rounded” savings. If you choose this benefit, Chase will automatically round up every purchase you make to the nearest pound and save the difference. For example, if you spend £ 9.55 in a supermarket, Chase will round that amount to £ 10 and save 45p on a separate account. He will pay 5% AER variable interest on these amounts. This beats the highest current savings rates, albeit only on the amounts you’ve saved through the pool feature, meaning you can’t top it up with extra cash.
Interest is calculated daily and paid monthly to the savings account, and after one year the entire balance is transferred to your main balance, although you can withdraw funds without penalty before that. There is no time limit for this feature, so you can continue to save after the first year – although the rate is variable, the amount of interest you earn could change in the future.
- It offers free use of debit cards abroad. You will not be charged any fees for making purchases or withdrawals of cash outside of the UK. While this isn’t unique for a challenger bank – competitors like Monzo and Starling also offer it – it’s a great feature to have if you plan to travel internationally. To learn more about the best debit cards to use on vacation, check out our guide to travel cards.
- It gives you the option of dividing the money in your checking account into different “pots”. These jars have their own separate checking account number, and you can use your debit card to spend from any account of your choice by selecting which account to use through the app when making payments. The idea is to help people budget and save.
Chase does not currently have an overdraft facility, but he told us he plans to offer loan products later.
How Chase Stacks Up
Chase’s cashback and savings features are nifty, but you need to do your research and check if this is the best account for you based on your needs. Importantly, Chase doesn’t come with change incentives, so if you’re looking for hard cash, there may be better alternatives. For example:
- You can get £ 130 back by transferring an existing checking account to Santander. Santander is currently paying new and existing customers £ 130 to upgrade to its 123 Lite account, which offers 1-3% cash back on household bills. Although the account charges a fee of £ 2 / month, changing cash negates this, and those with medium to high bills can earn around £ 40 to £ 80 / year after the charge. Of course, there is no reason why you can’t upgrade to Santander, but also open a Chase account and use Santander Lite to pay all bills eligible for cashback and Chase for all other purchases to maximize cashback. .
- You can get £ 100 by switching to Nationwide – and some can get 0% overdraft as well. Nationwide offers switches for a range of its £ 100 accounts – the star is Nationwide FlexDirect no charge, which offers 0% overdraft over one year up to £ 2,750 depending on your creditworthiness. Plus, you can earn 2% interest on up to £ 1,500 in the first year.
- Other change offers include £ 110 cash and a £ 30 Uber Eats voucher. For more information, see our guide to the best bank accounts.
When it comes to cashback, however, Chase is a solid choice. An alternative option includes:
- The American Express Platinum Cashback Everyday credit card, which pays 5% higher cashback, but only on purchases in the first three months up to a maximum of £ 100 in cashback. You will also need to spend at least £ 3,000 per year to earn all cashback, and after the first three months the rate drops to 0.5% unless you spend more than £ 10,000 a year – only then does it match the 1% Chase is paying. 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 buy and know you’ll hit the £ 3,000 trigger, Amex might be your best bet – although it may be worth using Chase after the first three months, unless you spend £ 10,000 / year. will earn a higher cash back rate, even if only for one year. For more credit card rewards, including £ 264 in bonus Nectar Points and a £ 30 Amazon Voucher, check out our comprehensive guide to credit card rewards.