Bank announces 3% cash back on Amazon offer – with a 5% interest rate for account holders | Personal Finance | Finance
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Amazon.co.uk shoppers will be able to take advantage of a new offer from the digital bank Chase as it announced plans to help Amazon shoppers this festive period. The Chase current account already offers customers one percent cashback on all eligible debit card spend for 12 months, but beginning today, Chase customers can benefit from an increased cashback offer of three percent on online purchases from Amazon.co.uk.
Eligibility
This promotion will run from today through to December 31 and will be applicable to up to £5,000 spent on the site. Customers will be able to earn the three percent cashback when they use their Chase debit card to make purchases at Amazon.co.uk, including digital downloads, Amazon Prime subscriptions, and items sold by third-party merchants through Amazon.co.uk’s marketplace.
In order to start earning this additional cashback, customers must activate the offer in the Chase app via the Rewards hub.
Deborah Keay, Chief Marketing Officer of the digital bank, commented on the launch.
“The festive season is fast approaching and we know consumers are already busy shopping for the holidays,” she said.
“We want to help everyone to have an even more rewarding festive season this year, so we’re delighted to be expanding our fuss-free rewards programme so Chase customers earn a little extra back while they spend with Amazon in the run-up to the holiday period.”
READ MORE: NS&I announces interest rate as Green Savings Bonds go on sale
Additional features
The account will also allow “small change” round-ups on which customers can earn five percent interest. Customers can save as they spend by rounding up their debit card purchases to the nearest £1, and depositing the small change into a separate account where it will earn interest at five percent AER.
A fee-free debit card can also be used abroad. Customers won’t be charged any fees by Chase when using their card while travelling, including for cash withdrawals at ATMs abroad.
Customers will also have access to a UK-led customer support team and “with just a few taps in the Chase app”, customers will be connected to a specialist – 24 hours a day, seven days a week.
New customers interested in taking advantage of the Amazon offer can open a Chase current account quickly and simply by downloading the Chase app.
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Inflation continues to take its toll on savers’ cash
Consumers may want to take advantage of these perks where they can as they are likely to get much of a return from savings interest rates. Yesterday, the ONS shared that inflation rose to 4.2 percent during October, up from 3.1 percent in September.
Money held in savings accounts will be chipped away by this rising cost of living and according to analysis from Moneyfacts, there is not one standard savings account that can outpace inflation.
According to Moneyfacts, the only deal that comes close is with UBL UK. Its current five-year fixed rate bond is paying 2.14 percent.
Additionally, the highest five-year fixed rate ISA from West Brom BS is paying two percent. Rachel Springall, a Finance Expert at Moneyfacts.co.uk, commented on the latest inflation figures.
“Inflation erosion on the true spending power of consumers’ cash persists and any attempts to ease the strain is unlikely to ease the frustration of savers in a low interest rate environment,” she said.
“As the rate of inflation remains above its target of two percent, consumers would be wise to review the rate on any existing savings account and consider switching to a better deal due to recent improvements to the top rate tables.
“Easy access accounts remain a firm favourite among savers due to their flexibility and rates have improved since last month, but the top rate today still pays less than the best rate offered a year ago. However, it is the fixed bond market which has shown more notable improvements to rates compared to a year ago and savers can now get a better rate on a one-year bond than they could have secured on a two-year bond last November.”
Those looking for better deals may be able to get results if they turn away from the big names. Ms Springall continued: “Interest rates on savings accounts on average dropped to record lows this year so the continued improvements to the top cash savings rates is positive, but in real terms inflation is still taking its toll even on the best rates.
“The murmurings of a base rate rise could mean a further uplift to interest rates, but savers would be wise not to wait around for this to come to fruition. Competition among challenger banks and building societies is evident in the top rate tables and savers would be wise to act with pace to take advantage.”
Interest rates
With inflation rising, and expected by some to rise further over the coming months, many expect the Bank of England will have no choice but to raise rates. Currently, the base rate is 0.1 percent and the next review will take place on December 16.
In recent months, Bank of England policymakers hinted increased rates could be on the horizon and while it has not come to pass yet, Giles Coghlan, Chief Analyst at HYCM, noted that could be about to change.
“For months, market commentators and economists have been suggesting that an interest rate hike from the Bank of England (BoE) is not far off,” he said.
“Up until now, these forecasts have not come to fruition – but [the recent] CPI reading for October at 4.2 percent, coupled with strong employment data, will likely be the tipping point for the BoE. As UK labour data has shown a positive surprise with 247,000 jobs added – when only 185,000 were expected – such figures surely make the case, ‘if not now, when?’ for the Monetary Policy Committee (MPC).
“Although there are still a number of MPC members who take the position that inflation is transitory, the cards now seem stacked in favour of a hawkish turn from the central bank in December, given that employment and inflation were the two main factors preventing a rate hike at the last BoE meeting.”
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