Funding Bank Accounts with Chase Cards: Could Now Be Considered Cash Advances

 

Using a credit card to fund new bank accounts has long been a clever strategy to meet spending thresholds and unlock lucrative signup bonuses. Chase cards, in particular, have been a popular choice for this technique. However, recent reports suggest that Chase might be tightening its policies.

 

According to a Reddit datapoint, users who recently funded bank accounts with a Chase credit card received notifications stating: *”You recently used your credit card to transfer money or fund an account(s). This is like withdrawing cash, which incurs a cash advance fee and APR.”* Additionally, another Chase document warns that such transactions may soon be treated as cash advances.

 

This potential change is important to consider because cash advances come with significant downsides. They typically carry steep fees—as they immediately accrue interest charges and fees.

 

This is based on one Redditt post so it may be a one off, but proceed with caution, and let’s hope it’s not so.