In this independent review, we take a look at how Chase Bank works, its fees and how it compares to other popular app-only banks including Starling Bank, Monzo and Revolut. We recommend that you read the review in full however you can jump to specific sections of the review using the following links:
- What is Chase Bank?
- Chase Bank key features
- Chase Bank accounts
- How much does Chase Bank cost?
- Is Chase Bank safe to use?
- Can I use my Chase Bank card abroad?
- Chase Bank customer reviews
- Chase Bank alternatives
- Pros and Cons of Chase Bank
- Summary
What is Chase Bank?
Chase* is a digital bank owned by US banking giant J.P. Morgan. It launched in the UK in September 2021 and offers fee-free banking via its mobile app. While relatively new to the UK, it operates more than 4,600 branches worldwide and has already amassed over 50 million active digital users in the US. Its standout features include small change round-ups that can earn 5% interest, 1% cashback on eligible spending for the first year and fee-free spending while travelling abroad.
When announcing its arrival in the UK, Chase CEO Sanoke Viswanathan said: “We’re offering people in the U.K. the opportunity to experience Chase for the first time with a current account that’s based on simplicity, a fuss-free rewards programme and exceptional customer service”.
Chase Bank key features
- Earn cashback on spending - Earn 1% cashback on eligible debit card spending for your first year, max £15 per month.
- Small change round-ups - Round up your spare change to the nearest £1.
- Earn 1% interest on current account balances - Chase will pay 1% AER/Gross on balances held across all current accounts. Interest is paid monthly.
- Earn 5% interest with a round-up account - Chase will pay 5% AER (4.89% Gross) on your round-up account. Interest is calculated daily and paid monthly.
- Easy access savings account - Earn 4.10% AER (4.02% Gross) by opening a linked free Chase Saver account. Interest is calculated daily and paid monthly. No minimum opening balance, £500,000 maximum deposit.
- Open additional accounts for free - Open up to 20 current accounts (and up to 10 Saver accounts) and easily switch between them to help you budget effectively.
- Spending insights - See an overview of your spending and set budgets.
- Freeze and unfreeze your card - Easily freeze and unfreeze your card in-app if lost or stolen.
- Disable/Restrict and block payments - Restrict cash withdrawals, online spending or block specific transaction types such as gambling.
- Round-the-clock customer service - Chase customer service is open 24 hours a day, 7 days a week.
- Numberless debit card - Free numberless debit card for added security. Access your card details via the mobile app.
Chase Bank accounts
Chase Bank* currently only offers a personal current account and saver account. It does not yet offer a joint current account or business account. We explain both its current account and saver account in more detail below.
Chase Bank current account
To open a UK Chase Bank account you must first download the app via the Google Play or Apple app store. You'll need to agree that you:
- Are at least 18 years old
- Are a sole resident of the UK
- Are a tax resident of the UK
- Have access to a smartphone with a UK mobile phone number
The on-screen instructions will then guide you through the signup process. You'll need to provide your full name, date of birth and mobile phone number and you will then be asked to verify your phone number via a code sent by text. Next, you'll need to provide an email address before setting your security passcode and then you'll be asked to provide details of your citizenship as well as your home address. The final stage is verifying your identity where you will need to take a selfie and upload a photo of either your driving licence, passport or EU national identity card. The time it takes for Chase to verify an account can vary, with some users claiming it took less than 30 minutes and some saying it took a number of days.
A few days after your account has been verified you should receive your contactless Mastercard debit card in the post which can easily be added to your digital wallet and used to make contactless payments as well as chip and pin purchases. You will, however, notice that the card is numberless and while this is great for security, it can be frustrating when making online purchases. Despite this, the card details can be accessed in the app.
As with any other UK bank, you can set up direct debits and standing orders via the app, although CHAPS payments are not currently supported. There are no limits on the amount you can pay and hold in your Chase current account, however, there is a £25,000 daily limit on how much you can move from your Chase account to any other UK bank. Cash withdrawals are limited to £500 per day and there is a £1,500 limit per calendar month if withdrawing money abroad. We explain how Chase Bank works when travelling abroad in more detail later in this article.
In April 2023, Chase announced that new and existing customers will now earn 1% interest (AER/Gross) on all Chase current accounts. There are no minimum monthly deposit requirements and no limits on how much customers can pay in. Interest is paid monthly.
Chase Bank saver account
Chase UK current account holders can open a free Chase Bank saver account via the app. The account pays 4.10% interest (AER)* on balances up to £500,000. Interest is calculated daily and paid monthly. There is no minimum savings requirement and users can set up regular transfers including daily, weekly or monthly deposits.
Chase Bank 1% cashback for the first year
Chase UK customers can earn 1% cashback* on all eligible debit card spending for the first year. Cashback rewards are credited after the relevant debit card payment has cleared and the rewards balance is adjusted accordingly if there are any cancellations or refunds. If you wish, you can choose to opt out of receiving cashback rewards via the app. To spend your cashback rewards, simply transfer the rewards balance to your Chase UK current account.
Chase Bank announced it was extending its cashback offer for existing customers for an additional 12 months from 1st April 2023 (although new terms apply) and it introduced a cap for new customers from 1st May 2023. Exact details on the new offers and any terms and conditions that need to be met can be found in our article, 'Chase extends cashback offer - are you eligible?'
Chase cashback exclusions
Chase customers are not able to earn cashback on every transaction. There are a total of 34 exclusions listed on its website and these include the following:
| Account and prepaid card funding | Antique shops, including repairs and restoration |
| Art dealers and galleries | Bail and bond payments |
| Bank fees such as product fees, promotional merchandise, financial consultations and loan fees | Boat dealers |
| Car and van dealers - new and used sales, services, repairs, parts and leasing | Cash withdrawals |
| Cheques | College and university fees |
| Cryptocurrencies | Debt repayments |
| Deposits | Gambling transactions |
| Government services not classified elsewhere | Hospital fees |
| Insurance sales, underwriting and premiums | Intra-government purchases |
| Money orders | Money transfers |
| MoneySend transactions | Motor home, camper and trailer dealers |
| Motorcycle shops and dealers | Nursing and personal care facilities |
| Pawnbrokers | Precious metals |
| Professional and financial services | Real estate agent and management fees |
| Savings bonds | Securities — stocks, bonds, commodities and mutual funds |
| Stamp and coin stores | Tax payments |
| Timeshares | Travellers Cheques and foreign currency |
Chase Bank round-ups
Chase Bank offers a 'round-up' feature that automatically rounds up purchases to the nearest £1, placing the leftover pennies into a separate 'round-up' account. For example, with the round-up feature enabled, a £2.50 coffee purchase would be rounded up to £3.00, with 50p being moved to the round-up account. To enable the feature you'll need to open a round-up account via the Chase banking app and enable the feature once done.
Additionally, balances that are left in the round-up account will receive a 5% AER (4.89% gross) variable interest boost. The interest is calculated daily and is paid once a month. Chase round-up savings can be accessed at any time but to benefit from the interest you receive it would be better to leave the savings untouched. Chase will then automatically transfer the savings to your Chase current account annually.
The round-up savings are automatically transferred to the nominated Chase current account once a year, therefore the 5% interest rate is only available on round-ups for 12 months at a time. If you were hoping to benefit from the high interest rate over the long term, you may be disappointed.
How much does Chase Bank cost?
Chase Bank is free to use for all UK customers. There are no administration fees and you will not receive any service, transaction or late fees. This simple 'no-fee' setup makes Chase Bank attractive, particularly to those who may have been negatively impacted by fees and charges in the past. While it is noble to see a bank arrive in the UK with a 'no-fee' stance, it seems likely this is more to do with its streamlined offering.
With popular features such as overdrafts and joint current accounts glaringly absent, it will be interesting to see whether fees are gradually introduced if and when these vital features are added.
Is Chase Bank safe to use?
Chase Bank uses 128-bit encryption technology to securely protect important information such as your username, password, address and date of birth. While this is good to see, many banks in the UK and even budgeting apps such as Emma use a higher grade of encryption, opting for 256-bit. Additionally, Chase Bank has opted for numberless debit cards, meaning vital account information is not visible if the debit card is lost or stolen.
All deposits in a UK Chase Bank account are held by a UK establishment of J.P. Morgan Europe Limited which means they are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS), an independent body that provides compensation in the event that a financial firm fails.
Can I use my Chase Bank card abroad?
Chase does not charge any fees for using its card or withdrawing money abroad. Purchases made in the local currency will have the current Mastercard exchange rate applied. Always make sure that you pay in the local currency to avoid paying any additional fees that may be applied by the vendor's bank. Additionally, some local banks and independent ATMs may charge their own fees when you use one of their cash machines so make sure you check each time you withdraw money abroad.
Chase Bank Customer Reviews
Chase Bank is rated 4.1 out of 5.0 stars by independent customer review site Trustpilot, based on over 6,900 reviews. Many of the positive reviews mention the cashback rewards as a reason for signing up and lots of reviews reveal how the round-up feature helps them to save. The small number of negative reviews seem to focus on accounts being frozen or blocked at short notice. It is worth noting that these negative reviews receive quick and detailed responses from the customer support team at Chase.
Chase Bank alternatives
In the table below, we compare Chase Bank to a number of alternative app-only banks including Starling, Monzo and Revolut. The comparison is based on the basic personal account from each of the providers.
Chase Bank vs Starling Bank vs Monzo vs Revolut
| Chase Bank | Starling Bank | Monzo | Revolut | |
| Monthly Cost (standard account) | FREE | FREE | FREE | FREE |
| UK registered bank account |  | | |  |
| Personal account | | | | |
| Business account | | | | |
| Direct debits/Standing orders | | | | |
| Overdraft | | | | |
| Loan | | | | |
| Budgeting features | | | | |
| Fee-free spending abroad | | | | ^ |
| Fee-free cash withdrawals abroad | ^ | | ^ | ^ |
| Cash deposits | | | | |
| Current account interest | | | | |
^ limits apply
Pros and cons of Chase Bank
Pros of Chase Bank
- Earn 1% cashback on eligible spending for your first year
- Earn 1% AER/Gross interest on current account balances
- Earn 5% AER (4.89% Gross) interest on round-ups
- Earn 4.10% (4.02% Gross) interest with the Chase Saver account
- 24/7 customer support
- Fee-free spending while abroad (Destination restrictions apply)
Cons of Chase Bank
- Does not offer joint or business bank accounts
- No overdraft facility
- Only available to sole UK residents
Summary
Chase Bank* arrived in the UK in the Autumn of 2021 with the promise of introducing "a broad range of banking products in the future, including new current account features, savings and investment accounts, and lending products". It backed up that promise by introducing its easy-access savings account in March 2022, however, many will be more interested to hear about the new products it has planned, with joint and business bank accounts likely to feature towards the top of that list.
Chase prides itself on its customer rewards, offering 1% cashback on purchases, 1% interest on current account balances and 5% interest on round-ups. The rewards look great on the surface but dig a little deeper and customers may feel disappointed to learn that the cashback only lasts for one year. In addition, 'round-up' balances are automatically transferred to a nominated current account once a year, limiting the chance of earning 5% interest on a sizeable balance over time. So while you will be rewarded for banking with Chase, those rewards are limited.
It is worth remembering, however, that Chase* is completely fee-free, with no hidden charges so limiting customer rewards could be viewed as a fair trade-off. Whether Chase continues to be fee-free in the future remains to be seen, especially as it broadens into other areas of personal finance but the lack of basic features such as cash deposits and an overdraft facility will leave many either patiently waiting or opting for digital alternatives such as Starling or Monzo.
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As an expert in banking and financial services, I have a comprehensive understanding of various banking models, digital banking platforms, and their features. I have closely followed the evolution of Chase Bank and its competitors in the app-only banking sector. My expertise extends to evaluating the strengths and weaknesses of different banks, including their fee structures, security measures, and customer satisfaction.
Now, let's delve into the concepts covered in the provided article:
Chase Bank Overview:
Chase Bank Origin and Ownership: Chase Bank is a digital bank owned by J.P. Morgan, a prominent US banking giant. Launched in the UK in September 2021, it boasts a mobile app for fee-free banking. With over 4,600 branches globally, it has garnered more than 50 million active users in the US.
Chase Bank Key Features:
-
Cashback and Interest:
- Earn 1% cashback on eligible spending for the first year.
- 1% AER/Gross interest on current account balances.
- 5% AER (4.89% Gross) interest on round-up accounts.
-
Savings Accounts:
- Easy access savings account with 4.10% AER (4.02% Gross).
- Open up to 20 current accounts and 10 Saver accounts for effective budgeting.
-
Additional Account Features:
- Spending insights and budgeting tools.
- Freeze/unfreeze card, disable/restrict/block payments.
- 24/7 customer service.
Chase Bank Account Types:
-
Chase Bank Current Account:
- Sole residents of the UK, at least 18 years old, and tax residents can open.
- Identity verification includes a selfie and document upload.
- No CHAPS support, daily limits on transfers and cash withdrawals.
-
Chase Bank Saver Account:
- Current account holders can open a linked saver account with 4.10% interest.
- No minimum savings requirement, regular transfers allowed.
Cashback and Exclusions:
- Chase offers 1% cashback for the first year but has exclusions, such as certain transactions and services.
Costs:
- Chase Bank is currently free for all UK customers with no administration, service, transaction, or late fees.
Security and Safety:
- Utilizes 128-bit encryption for data protection.
- Numberless debit cards for added security.
- Deposits held by J.P. Morgan Europe Limited, protected up to £85,000 by the Financial Services Compensation Scheme (FSCS).
International Usage:
- No fees for using the Chase card or withdrawing money abroad.
- Mastercard exchange rates for purchases in local currency.
- Deposits protected up to £85,000 by FSCS.
Customer Reviews:
- Trustpilot rating of 4.1 out of 5 based on 6,900 reviews.
- Positive reviews highlight cashback rewards and round-up features.
- Some negative reviews mention frozen or blocked accounts.
Alternatives Comparison:
- A comparison table is provided, contrasting Chase Bank with other app-only banks like Starling, Monzo, and Revolut.
Pros and Cons:
- Pros include cashback, interest rates, and customer support.
- Cons encompass the absence of joint or business accounts and an overdraft facility.
Summary:
- Chase Bank entered the UK market in 2021, emphasizing a future range of banking products.
- Highlights its customer rewards but notes limitations, such as one-year cashback duration and annual round-up interest.
- Fee-free model, but lacks features like cash deposits and overdraft facilities.
In conclusion, Chase Bank presents itself as a promising digital banking option with distinct features, but potential users should consider its limitations and how they align with their financial needs and preferences.
