JP Morgan’s Neobank Chase: Introduces Cashback Cap and Expands Rewards Program

In the past 18 months, Chase Bank has quickly established itself as a major player in the UK banking sector. 

Launched by JP Morgan as a direct challenger to the likes of Monzo and Starling, Chase has been widely regarded as a runaway success story.

A key component of Chase’s early success has been its attractive rewards programme, which includes a 1% cashback offer on all spending.

A New Cap on Cashback

Unfortunately for customers, the good news is coming to an end. From April, the 1% cashback offer will come to an end, and a cap of £15 per month will be placed on the offer for new customers starting from May.

This means that customers can still earn up to £180 per year, but only if they spend a minimum of £1,500 each month.

New Rewards

Despite the change in its cashback programme, Chase is looking to expand its rewards offering. From April, customers will be able to earn 1% interest on their current account balances.

This is in addition to the existing 3% savings account, and 5% interest on small change round-ups. These rewards are aimed at attracting and retaining customers while encouraging them to use Chase as their primary banking provider.

Qualifying for Cashback

Under the new cashback offer, existing customers will need to pay a minimum of £500 to their Chase current account each month in order to qualify for cashback the following month.

The new offer will come into effect from 1 April 2023 for existing customers.

For customers joining Chase from 1 May, the cashback offer will be capped at £15 per month.

Looking Ahead

According to Shaun Port, Managing Director for Everyday Banking at Chase, “We’re expanding our rewards programme so our customers can continue to enjoy cashback on their everyday debit card spending.

At a time when everyone wants their money to work harder, the introduction of 1% interest on current accounts adds another way in which customers can be rewarded for banking with Chase”.

While the cap on cashback may disappoint some customers, it is clear that Chase is committed to offering attractive rewards for its customers. It will be interesting to see how this new rewards programme will play out in the months and years to come, and how it will shape the wider UK banking landscape.