Posted by William Charles on September 20, 2019
Bank Account Bonuses

Published on September 20th, 2019 | by William Charles

147

Chase Sapphire Banking $1,000 Upgrade & New Account Offer

Offer at a glance

  • Maximum bonus amount: $1,000
  • Availability: Public
  • Direct deposit required: None
  • Additional requirements: Deposit $75,000 and maintain that for 90 days
  • Hard/soft pull: Soft
  • ChexSystems: No
  • Credit card funding: Cannot fund with debit or credit in branch.
  • Monthly fees: $25, avoidable
  • Early account termination fee: Bonus taken back if closed within six months
  • Household limit:  None listed
  • Expiration date: November 19th, 2019

The Offer

Direct link to offer

  • Chase is offering existing deposit account holders $1,000 when they upgrade to a Chase Sapphire Banking account and complete the following requirements:
    • Within 45 calendar days transfer a total of $75,000 or more qualifying new money or securities to a combination of eligible checking, savings and/or investment accounts, and maintain that balance for at least 90 days (irrespective of any losses or gains due to trading or market fluctuation)

The Fine Print

  • Offer not available to existing Chase Sapphire Banking and Chase Private Client customers. To receive the $1,000 bonus: 1) Meet with a banker to upgrade your relationship or open a new Chase SapphireSM Checking account. 2) Within 45 calendar days, transfer a total of $75,000 or more in qualifying new money or securities to a combination of only eligible accounts:
    • Eligible Accounts: personal checking, savings and/or J.P. Morgan investment accounts (You Invest Brokerage and accounts opened in a Chase branch and serviced by a J.P. Morgan Private Client Advisor or Financial Advisor).
    • Ineligible Accounts: any J.P. Morgan retirement accounts (such as Traditional and Roth IRAs, Keoghs, SEP and SIMPLE IRAs, and 401(k) plans); CDs; insurance products; fixed and variable annuities; J.P. Morgan Fund Accounts; 529 College Savings Plans.
  • The qualifying new money cannot be existing deposits, funds or securities held by you at Chase or its affiliates. AND 3) Maintain at least a $75,000 balance for 90 days from the date of funding. Gains, losses, or market fluctuations will not be counted when determining if you have maintained the $75,000 net new money for 90 days. After you have completed all the above requirements, we’ll deposit the bonus in your new account within 10 business days. The Annual Percentage Yield (APY), for Chase Sapphire Checking effective as of 09/09/2019 is 0.01% for all balances in all states. Interest rates are variable and subject to change. Additionally, fees may reduce earnings on the account. You can only participate in one Chase Private Client CheckingSM, Chase SapphireSM Checking or You InvestSM new money bonus in a 12 month period. Coupon is good for one time use and only one bonus per account. Bonus is considered interest and will be reported on IRS Form 1099-INT (or Form 1042-S, if applicable).
  • All bank account bonuses are treated as income/interest and as such you have to pay taxes on them

Avoiding Fees

Monthly Fees

Sapphire Banking has a monthly fee of $25. To avoid this you need to keep $75,000 in the accounts

Early Account Termination Fee

Normally Chase claws back the bonus if the account is closed within six months. Isn’t clear if that’s the case here or not.

Transfer Out Fee

$75 Applies when any securities are transferred out of the account

Our Verdict

Previously this was a $750 bonus, so this is an extra $250. If you did the other bonus I doubt you can match to this one, but might as well try. They have offered a bonus of 60,000 Chase UR points in the past as well, will be interesting to see if they increase that bonus.

Keep in mind getting this bonus can only be done once per 12 month period, you can do a Chase checking/savings bonus every 24 months and they are on different clocks (e.g doing this bonus doesn’t make you ineligible for the Chase checking/savings bonus). I will be adding this to our list of the best bank account bonuses.

Hat tip to  cookie_monster32

Useful posts regarding bank bonuses:



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Ken
Ken

I want to “upgrade” my 60,000 UR bonus to this $1000 bonus.

Peter
Peter

Upgrade? Is it working?
Thanks

qmc
qmc

After tax they might be relatively comparable, depending on your tax rates.

60k UR is 1099 reported at 1cpp but is worth 750-900ish if used for travel. Minus 240 in taxes at 40% marginal gives you $510-660. Versus $1000-40% gives you ~$600

anthonyjh21
anthonyjh21

Highest bracket is 38% and you’d need to be making over $600k. I get your point but I think many of us would take $1,000 over 60k UR. I know I would have waited had I known this was coming.

Steve

State tax in places like California adds over 9%

(And for federal, the numbers I see for 2019 are 37% for income over $510,300 (for single))

anthonyjh21
anthonyjh21

The numbers I pulled were probably for filing jointly. Either way your effective tax rate is going to be much lower than 37% federal. Don’t forget about the higher standard deduction as well. For state yes you’ll have to factor that in as well.

Steve

Standard deduction doesn’t help me since with high state taxes & mortgage interest, I itemize anyway. But my point was just that 40% total marginal tax isn’t uncommon. (But, I don’t travel much, so in the end I agree with you that I’d prefer $1000 rather than 60K UR.)

Joe
Joe

Of course it’s uncommon;.

qmc
qmc

It’s not the effective tax rate that matters here. You “have” 3 choices — not do it ($0 taxable income), 60k UR ($600 taxable), or $1000 ($1000 taxable).

For that last 0-600-1000, the marginal rate is what matters. We know a lot of readers are in higher income brackets (to have $75k lying around in investments or whatever) and higher-income tax states, so I just spitballed.

My point was just that depending on your valuation of the UR and your tax rate, they could be comparable. At 30% marginal, it’s $570-$720 (at 1.25/1.5cpp) for UR compared to $700 for the cash.

Kevin
Kevin

I agree that 60k UR is still somewhat considerable for those with high marginal tax rate. If you live in CA and have ~500k household income your marginal tax rate can be 35%+9.3%+3.8%(thanks to Obama) = 48.1%. I prefer to use marginal because the bonus indeed in addition to your normal income.

qmc
qmc

It doesn’t even need to go to that high wealth. $189k gross for a single filer, minus standard deduction 12200 minus 401k max 19000 is 158k, which is 32% federal plus 9.3% state totalling 41.3%

Rob
Rob

I know the offer states so, but is it really necessary to do this in-branch, or might one be able to apply the offer over the phone/secure message?

Chris
Chris

The direct link to the offer takes you to a Chase page that gives you the option to open the account online. Seems like it would also work that way.

Orgalon
Orgalon

Does anyone have dp for opening the account online? For example, if you get a coupon code and open the Sapphire acount online do you then need to make an appointment with a banker for the youinvest account?

Steve

If you’re opening a new account, it can be done online on in-branch. Someone was able to open a new account online even though they already had a Chase checking account (i.e., they ended up with 2 checking accounts). But if you want to upgrade your existing account, I think in-branch is the only option (but I don’t know if anyone has tried upgrading via phone/SM).

hayden
hayden

how does the 12 month calculated? the enrolment date or bonus posting date?

SY
SY
Riley
Riley

Can I have both the Chase checking and Chase Sapphire Banking?

Jay
Jay

So, lets assume the following:

– on day 45, I transfer over $75k in cash.
– leave it there for 90 days
– then transfer it out, meaning I’d have to pay the monthly $25 fee for 1-2 months (to reach 6 months of account being open)
– close the account after 180 days.

That would mean $950 bonus for tying up 75k cash for 90 days.

Is that correct / would that work?
If so, what’s my annualized return rate on the money?

(my napkin math: (950/75000) x 4 = 5% ???)

Heritage
Heritage

you want someone to do the basic math for you?

Jay
Jay

Kinda, since I don’t trust myself or my napkin… 😉

Anyway, also would appreciate any suggestions how to make this more profitable WITHOUT dealing with any investment account (e.g maybe there’s an interest-paying savings option that would qualify) ?

JT
JT

I was thinking maybe just downgrade after the bonus? That’s how we used to do it with chase ofc. But I’m not sure really how these sapphires accounts work.

Charles Mann
Charles Mann

You need a new Apple Digital Napkin (soon to be released)

Dan
Dan

The play is to transfer securities, not cash.

Bobby
Bobby

Great point, that’s what my play is too!

Matt
Matt

This is what I did last year for the $750 bonus. When I transferred the securities back out after I got the bonus, they charged me $75. When I asked them to credit that fee back to me, they did.

Yu
Yu

is it because you transfer out ALL securities and close the account that causes the charge of $75? What if you leave some cash there and keep the account open?

Steve

The fee schedule says the $75 fee “applies when any securities are transferred out of the account”, which sounds like it’d apply for a partial transfer, not just a full transfer. But, I haven’t seen a data point of someone trying a partial transfer to see if it’s enforced.

Jim
Jim

Yes, they charged me the full $75 for a partial.

Good thing most firms reimburse

S
S

Then you pay $25/month for every month you’re under $75k

qmc
qmc

Or transfer cash and buy securities with it.

Charles Mann
Charles Mann

Or open the account in cash, buy ETF’s, then cash out when you are ready.

elaine
elaine

If you fund it at day 45, do you still pay the $25 service fee while waiting to fund it?

Samosa
Samosa

Sound fabulous but in reality its only $175 after accounting for interest lost and fees incurred:
$50K in TAB Kasasa = 50K x 0.04/12 = 166.66/m x 3 = $500
$25K in a Orient = 25K x 0.04/12 = 83.33/m x 3 = $250
Withdraw ~75K after 3m and pay $25/m fee for next 3m = 25 x 3 = $75
Total = 75+500+250 = $825
Its still $175 extra, but not as good as $1000.
A great opportunity only for those who have maxed out TAB, Orient, Heritage etc and still have extra $75K.

Jay
Jay

“A great opportunity only for those who have maxed out TAB, Orient, Heritage ”

Might not be a “great” opportunity, but the way I see it, your math shows you get more money (even if its ‘only’ $175) for upgrading a Chase account and less work in that time period (since no extra requirements as with TAB and Orient )…

And I have my doubts that Chase will increase the bonus amount even higher in the future.

Samosa
Samosa

Jay true that one would get more money with less effort for 3 months period, but another factor to consider is whether $175 is worth an additional Chex entry (for new accounts of course).

Charles Mann
Charles Mann

The last time I saw my Chex report I fell asleep reading it because it was soooooo long! I’ll take the $175 per Chex entry anytime!

Alex
Alex

What is Orient?

arizonapv
arizonapv

He meant Orion.

Samosa
Samosa

sorry, I meant Orion.

Ben
Ben

If you’re leaving the money in a checking account, you’re doing it wrong. Investment balances count. A money market fund in a YouInvest account will be paying 2% interest, so your opportunity cost is only half of what you calculated.

L
L

Ben Is right. I did this deal for 600 UR points. I put the $75k in VUSXX in a linked YouInvest account. VUSXX is VERY safe and currently yields 1.97 percent.

Samosa
Samosa

The qualifying $75K must be deposited in eligible accounts. “Eligible accounts; personal checking, savings and/or J.P. Morgan investment accounts (You Invest Brokerage and accounts opened in a Chase branch and serviced by a J.P. Morgan Private Client Advisor or Financial Advisor).”

I think a money market fund is not “serviced by a J.P. Morgan Private Clint Advisor or Financial Advisor”.

Steve

money market FUND in the You Invest account; not a money market ACCOUNT. And the “serviced by a …” phrase doesn’t look like it applies to “You Invest Brokerage” anyway; that phrase applies to other “accounts opened in a Chase branch”.

Samosa
Samosa

You are right…idk what was I thinking.

Dan
Dan

wtf are “TAB, Orient, Heritage”?

arizonapv
arizonapv

lol It’s Orion, not Orient.

Samosa
Dan
Dan

Tab is a pain in the ass. 3.33 is hardly worth it.

Orion is cool.

raj
raj

You’re thinking about this wrong. Do an in-kind transfer in 75k of investments and the opportunity cost should be exactly 0, unlike most bank bonuses.

Samosa
Samosa

raj your idea sounds good for those who invest in securities. I admit I was narrowly focused on my own situation.

anthonyjh21
anthonyjh21

You can park the $75k in a YouInvest money market fund such as vanguard and earn currently 2.14%. Then when the bonus hits move it all out, request to downgrade to total checking and you’ll pay no fees.

You can also confirm the date you must hold the money through to qualify. When that date comes cash out your money market funds because it can take a few days to clear.

I did twice in two player mode earlier this year for 60k UR. Your opportunity cost is therefore whatever your current APY is minus the 2.14%

Based on your 4% – 2.14% = 1.86% APY opportunity cost which translates to $263 lost. $1,000 – $263 = $737. Absolutely worth it in my book. Too bad they didn’t offer $1000 when I did it.

Samosa
Samosa

Thanks anthonyjh21 …I realize my math was way off as I didn’t think through it.

Jay
Jay

Agree, thanks anthonyjh21 .
That was the kind of the advice I was looking for too in my original post with my ‘napkin math’.

(since the 75k is needed in cash for future bank bonus offers, like the 50k Marcus offer I’m doing atm.)

P.S.: And Samosa , lol I was already half asleep when I responded to ya, so, after originally writing Orion in my reply, I actually went back and edited it to say Orient too. Just assuming you were right 😉

Samosa
Samosa

Jay haha…you are literally the first person ever who assumed I could be right.

Tony
Tony

80,000 UR coming?

Atlind01
Atlind01

You can get additional $200, if you put that 75K in a new YouInvest Account.

danny
danny

yea i think the play is to use it as a brokerage account, the additional $200 helps

Romero
Romero

Is there a fee for the Youinvest account? How much interest rate on that account? I am not familiar.

anthonyjh21
anthonyjh21

It’s a brokerage account. No fees on the account but as usual you’ll pay for trades. I think you get a few free. I didn’t pay anything to buy the vanguard money market fund.

Allan
Allan

I did the 60k UR offer a few months ago. The banker tried to apply both offers but found that you can get only one.

According to:
https://accounts.chase.com/consumer/investing/online/youinvestoffer

“You can only participate in one You InvestSM, Chase Private Client CheckingSM, or Chase SapphireSM Checking or new money bonus in a 12 month period.”

Atlind01
Atlind01

got it thanks

anthonyjh21
anthonyjh21

Yeah it’s one or the other. At least we can do it yearly though.

paul
paul

“You can only participate in one Chase Private Client CheckingSM, Chase SapphireSM Checking or You InvestSM new money bonus in a 12 month period.” Read it.

Bobby
Bobby

How do you get the additional $200 for the YouInvest account?

Homer Jay
Homer Jay

I tried this in branch and it did not work because of this fine print:

“You can only participate in one Chase Private Client CheckingSM, Chase SapphireSM Checking or You InvestSM new money bonus in a 12 month period.”

The YouInvest bonus would disqualify you for the Sapphire bonus.

DM
DM

One thing to just potentially be aware of, not sure if this language has changed at all from the 60k UR offer where un-managed You Invest accounts DID WORK

“Eligible Accounts: personal checking, savings and/or J.P. Morgan investment accounts (You Invest Brokerage and accounts opened in a Chase branch and serviced by a J.P. Morgan Private Client Advisor or Financial Advisor).”

Unclear if that “AND SERVICED BY…” refers to both You Invest Brokerage or just accounts opened in a Chase branch. Maybe worth asking/comparing to other language…

datapoint

To recap — account can be a brand new YouInvest account, with a new money deposit of 75,000 and keep it there for 6 months (earn bonus + interest). Upon closing at 6 mo + 1 day, there is a 75 charge to move funds out. Is that correct synopsis ?

paul
paul

Not exactly. $75k+ only needs to remain in the account for 90 days. But if you choose to zero-out then, you will need to keep the Sapphire Checking account open for another 3 months, assuming people are right about the clawback, incurring a total of $75 in service fees. Best strategy would be to plan on keeping the funds in Youinvest for 6 months. Then, if you’re not happy, leave. Competitors often offer bonuses that will cover the close-out fee or, depending on the balance being transferred, will negotiate a reimbusement. Keep in mind that Youinvest offers no-commission mutual fund trading with no holding period or fund family restrictions, totally unparalleled.

Obtain the Grain
Obtain the Grain

To avoid the $75.00 move funds fee, would you liquidate your funds at Chase resulting in a $2.95 trade fee, and then move the cash out?

RD
RD

If you’re doing tax loss harvesting, it’s a great idea. But otherwise it’s easier to just eat the $75 fee (or convince the brokerage that’s accepting to the transfer to refund the fees).

This is very much YMMV, but being in Cali all cap gains are treated as income, so that’s a 10% haircut right there for me. I’d rather realize my gains in a state w/o income tax.

Steve

In addition to the other responses, there’s no trade fee anyway if you have Sapphire Banking.

Yu
Yu

where do you see the word of $75 charge when you move funds out?

Steve

fee schedule for You Invest

Steve

That $75 fee is for transferring securities out (e.g., an ACAT transfer to another brokerage). If you only have cash in the account, you could withdraw all the cash and not be charged a fee. (But, if you were holding securities in the account, that would mean that you’d need to sell them to get cash, which has tax implications.) Often the brokerage you’re transferring securities to will reimburse you the $75 fee anyway.

Arturo
Arturo

I already have ~$30k in a YouInvest account. Wondering if I can transfer in $75k of new money, then immediately withdraw $45k leaving an overall balance of $75k for 3 months? Or does the entire $75 of “new” money need to remain for the 3 months.

Paul
Paul

Many of the questions being raised here are plainly addressed in the T&C. “The qualifying new money cannot be existing deposits, funds or securities held by you at Chase or its affiliates.”

Amex Fangirl
Amex Fangirl

I saw the word “net new money” in the term, so you should withdraw $30K before enrolling in this promotion.

RD
RD

>(e.g doing this bonus doesn’t make you ineligible for the Chase checking/savings bonus).

Just to be clear, the vice versa is true too right? I’m eligible for Sapphire banking if I’m NOT eligible for the regular Checkings/Savings bonus right?

Amex Fangirl
Amex Fangirl

Yes, there are many data points support this.

Amex Fangirl
Amex Fangirl

“doing this bonus doesn’t make you ineligible for the Chase checking/savings bonus”

Have we seen anyone who did this successfully? I searched here and in Reddit but could not find any data point. The T&C of regular Chase checking bonus sounds ambiguous. It excludes anyone who received a checking bonus in the past 24 months, and Sapphire banking is clearly a checking account…

Betelgeuse
Betelgeuse

I’m wondering about this one too. There may not be anyone who has received a sapphire checking bonus and is eligible for basic checking bonus again since they either opened the total check and upgraded right away or it’s not yet 2 years since last total checking bonus,

Nick
Nick

Does opening a chase checking account help with preapproved credit cards from chase? I am at lol/24 but would gladly open a chase checking account if it would help me get more credit cards.

chchch
chchch

not worth the effort. Chase has whiffed on all its efforts since CSR. Their mobile payment app, this sapphire checking, youinvest. yikes. What those last 3 have in common is a half-ass effort by Chase. It’s like they aren’t even trying. They got what 200k employees. How effectively can we market a shitty checking account that pays .1% interest or whatever? That’s what these mba brainiacs at Chase are doing. What they don’t concern themselves with, is how to create a better checking account. And so it was with mobile payment and youinvest, as well.

Product marketing over product development, in other words.

Jay
Jay

Don’t forget that other DOA Chase product, I don’t remember the name, but it was the online only checking account aimed at millenials or Gen Z they shut that down this year since no one was using it… Just remembered it, Chase Finn.

You’re right lots of swings and misses from Chase recently.

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