Another Chase question

Archergirl

I have opened a Chase account and am getting 2% on my everyday spending, I have also opened a saving account getting 4.5% interest

Seems to good to be true, so what's in it for them?

la531983

If you are getting the cashback paid, and the interest paid, why even give it a second thought?

flexyfox

https://forums.moneysavingexpert.com/discussion/6679330/another-chase-question

They’re basically buying your loyalty. The cashback encourages you to use Chase for everyday spending, while the savings rate attracts your money so they can use those deposits to make money elsewhere. As long as you check the terms and rate limits, it can genuinely be a good deal for both sides.

Archergirl

https://forums.moneysavingexpert.com/discussion/comment/82097927#Comment_82097927

Because if it sounds too good to be true, it usualy is, I wondered if I was missing something……..

Kim_13

https://forums.moneysavingexpert.com/discussion/6679330/another-chase-question

The 4.5% will be a introductory bonus rate, mine pays 2.25% and it is therefore not worth my qualifying for cashback at the present time as I have another cashback card that doesn't require me to lose interest on £1,000 or make sure I've made enough transactions.

surreysaver

https://forums.moneysavingexpert.com/discussion/comment/82098992#Comment_82098992

It isn't too good to be true, though. Lots of banks offer cashback in various guises. And it's possible to earn more than 4.5% in interest with plenty of organisations too

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82098992#Comment_82098992

4.5% isn’t a lot more than a short dated gilt. Otherwise they’re just loss leaders to get you onboard in an attempt to get you to open a credit card or start investing with JPM Investments (formerly Nutmeg) and whatever else it plans to launch.

This is JP Morgan bank we’re talking about: don’t worry it can afford it.

https://giltsyield.com/bond/