You may have noticed over the last eighteen months that there is a new contender to the high street banking fraternity, and it may be a name you are not too familiar with.
That is Chase Bank, and they are here from over the pond offering some of their vast experience in looking after money to UK customers for the first time.
Who Are They?
They, as a bank were formed back in 1877 by Joh Thompson and was aptly named after the US Treasury Secretary Salmon Chase.
Primarily after many mergers they became one of the world’s leading investment banks and ran branches in most major financial cities around the globe.
It has in recent years and since the markets crashed in 2008 focused on its consumer side and already provides banking to 60 million households in the US.
Foray Into The UK
The US bank Chase has launched its first current account in the UK, prompting one analyst to say it “will blow the competition out of the water”.
Offering 1% cashback on everyday spending for the first 12 months, free card use abroad, including at ATMs, and 5% interest on limited savings, the deal may be an attractive option for Britons who are looking for a fresh option in the banking world.
Its UK offer is a digital-only, app-based account, making it a rival to firms such as Monzo and Starling. The digital bank, which is part of US giant JP Morgan, launched in September 2021 and already had more sign-ups than Monzo and Starling Bank managed in their first full 12 months combined.
Chase Bank has more than one million UK customers banking with it, just 12 months after it opened operations in Britain. The demand has been so great that prospective account holders are being asked to register on its waiting list.
The bank’s current account comes with a cashback rate of 1% on debit card spending for the first 12 months, and customers can deposit up to £250,000.
High Demand Causes Delays in Applications
Since the launch, the bank said over 1,000,000 new customers had opened a current account, but due to high demand, it has now been forced to open a “waiting room” for new customers looking to join.
A spokesperson for Chase bank said: “We care deeply about the quality of the experience we provide to our customers and so, to maintain that during this period of high demand, new customer applications are being temporarily held in a queue.”
The bank says it is taking a “controlled approach” to manage such high demand, and those who sign up should be able to become customers within days.
What Are Its Selling Points
It pays 1% cash back on most purchases for 12 months. You can transfer cashback from the ‘Rewards’ section of the Chase app to your principal account balance whenever you like. The 12 months starts from the date you activate cashback in the app, so make sure you do this to start earning.
It pays 5% AER variable interest on ’rounded-up’ savings. If you opt-in for this perk, Chase will automatically round up every purchase you make up to the nearest pound and save the difference.
For example, if you spend £9.55 at a supermarket, Chase will round this up to £10 and save 45p in a separate account. It will pay 5% AER variable interest on these amounts.
This is easily one of the best offers for the “round-up”, but you can’t top it up with extra cash.
Can I Deposit Cash Into a UK Chase Account?
There’s no way to pay in cash or a cheque direct to your Chase account.
At the time of writing, they do not have any consumer branches in the UK but have been considering this option due to the excellent response it has had from its UK customers.
Can I Withdraw Cash From Chase Bank UK?
You can withdraw up to £500 daily from cash machines (in the UK and abroad). If travelling abroad, there is also a £1,500 limit on cash withdrawals from your Chase current account in any calendar month.
Is Chase UK Regulated?
This firm is not authorised or registered by the UK but has been targeting people in the UK, claiming to be an authorised firm. This is legal as the company is authorised and registered in the USA.
Does The UK Government Cover Chase Bank?
Your eligible deposits held by a UK establishment of J.P. Morgan Europe Limited are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered.
Is Chase UK a Safe Bank?
Chase is authorised by the Prudential Regulation Authority (PRA) and is regulated by the Financial Conduct Authority (FCA). It is also protected by the Financial Services Compensation Scheme (FSCS) – any deposits up to £85,000 will be protected should Chase fail, although amounts above this are unlikely to be covered.
Does Chase Offer Other Accounts
This is one of the reasons the take up for the current account has been so high here in the UK, as the savings account is a market leader in terms of interest. However, there is a catch.
To open a savings account with Chase, which pays 1.5%, you must already have a Chase current account.
Chase, launched the savings account in early 2022. It is only available to existing Chase current account holders and those who sign up for a new current account – you can only open a ‘saver account’ if you have a current account with Chase.
Is Chase Bank Any Good?
Chase Bank is rated 4.0 out of 5.0 stars by independent customer review site Trustpilot, based on over 3,800 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.
It offers a fee-free account which is a positive, but it is low on other customer rewards and has no plans to add any in the near future.
