Chase Bank review: Is it the best UK digital bank? - Money To The Masses (2024)

In this independent review, we take a look at how Chase UK*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?
• Chase key features
• Chase bank accounts
• How much does Chase cost?
• Is Chase safe to use?
• Can I use my Chase bank card abroad?
• Chase customer reviews
• Chase alternatives
• Pros and Cons of Chase
• Summary

What is Chase UK?

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. It operates more than 4,600 branches outside of the UK 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 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 key features

• Earn cashback on spending - Earn 1% cashback on eligible debit card spending - max £15 per month.
• Small change round-ups - Round up your spare change to the nearest £1.
• Earn 5% interest with a round-up account - Chase will pay 5% AER (4.89% Gross) variable on your round-up account. Interest is calculated daily and paid monthly.
• Easy access savings account - Earn 3.85% AER (3.78% Gross) variable by opening a linked free Chase Saver account.
• Open additional accounts for free - Open up to 20 current accounts (including 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 UK* 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 current account

To open a Chase UK 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.

Once verified, users can set up their Chase debit card in their digital wallet and the contactless Mastercard debit card should arrive in the post in the next few days. 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 works when travelling abroad in more detail later in this article.

Chase UK saver account

Chase UK current account holders can open a free Chase saver account via the app. The account pays 3.85% interest (AER)* on deposits up to £1,000,000. 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 UK 1% cashback

Chase UK customers can earn 1% cashback* on all eligible debit card spending. 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.

All new customers benefit from an introductory 1% cashback offer where they don't have to make any minimum deposits. However, after the initial 12 months lapse, customers will be moved to Chase's Everyday Cashback offer where they'll need to deposit a minimum of £1,500 per month to continue receiving the benefits. The Everyday Cashback offer replaces a previous Monthly Cashback offer that gave existing customers an additional 12 months of 1% cashback providing that they deposited a minimum of £500 per month.

While the new offer has higher deposit requirements, it seems to be indefinite rather than time limited. However, Chase reserves the right to cancel or amend the cashback offer at any time.

Chase cashback exclusions

Chase customers are not able to earn cashback on every transaction. There are a total of around 34 exclusions listed on its website and these include the following:

Chase round-ups

Chase UK 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 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 cost?

Chase UK 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 UK 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 safe to use?

Chase UK 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 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 UK Customer Reviews

Chase is rated 4.2 out of 5.0 stars by independent customer review site Trustpilot, based on over 9,800 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. 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 often receive quick and detailed responses from the customer support team at Chase.

Chase alternatives

In the table below, we compare Chase UK 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 UK vs Starling Bank vs Monzo vs Revolut

	Chase UK	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 UK

Pros of Chase UK

• Earn 1% cashback on eligible spending
• Earn 5% AER (4.89% Gross) interest on round-ups
• Earn 3.85% (3.78% Gross) interest with the Chase Saver account
• 24/7 customer support
• Fee-free spending while abroad (Destination restrictions apply)

Cons of Chase UK

• Does not offer joint or business bank accounts
• No overdraft facility
• Only available to sole UK residents

Summary

Chase* 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 and 5% interest on round-ups. However, it's worth keeping in mind that 'round-up' balances are automatically transferred to a nominated Chase 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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