A MAJOR online bank has launched a lucrative cashback offer that can help them pocket an extra £240 a year.

Cashback, which is offered by banks, credit cards, and retailers, allows you to earn money back on your purchases.

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From July 1, Chase customers with debit and credit accounts can now get cashback when they spend at restaurants, cafes, and on takeaways.

Previously, the offer was only available when customers spent on groceries, fuel, and everyday transport.

The popular bank is also increasing the amount customers can earn in cashback, rising from 1% capped at £15 to 2% capped at £20.

That means customers have a chance to earn up to £240 cashback per year thanks to the boost.

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The new offer has no monthly fee and cashback is earned by spending in the relevant categories.

It is then added automatically to a customer’s rewards balance, without the need to pre-select retailers or setup a direct debit.

To qualify, customers will need to make 15 or more card transactions (debit or credit) or direct debits each month and maintain a balance of £1,000 or across their Chase saver accounts.

Shaun Port, managing director for Daily Banking and Savings at Chase, said: “By boosting cashback to 2% and expanding it to include restaurants, we’re making it easier for customers to earn more back on the things they spend on the most.

“Our new cashback offer is a simple, practical way to help customers make their money go further at a time when costs are rising, while providing even more reasons to do their daily banking with Chase.”

And Chase is not the only bank that is offering lucrative cashback offers.

Zopa Bank has doubled cashback on household bills in its flagship current account Biscuit from 2% to 4% to help offset rising bills. 

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said of the offer: “The Zopa Biscuit bank account is a fantastic fee-free option, it’s transparent and fuss-free, so having rewards is a great boost.

“Over the course of one year, the cashback someone can earn in total off direct debits will be £80; the previous offer was 2% cashback on bills, so customers would have earned up to £30 per year, so there are still other bank accounts which are more rewarding, and some less so.”