In March some Chase customers received a survey asking them about a product Chase was considering called ‘Chase Reserve Banking or Chase Sapphire Banking‘. According to our sources this will be rolled out on August 18th, 2018 and will be called Sapphire Banking. We don’t know the exact specifics of what this will be, based on the previous survey you’d expect:
- 50,000 points signup bonus (Ultimate Rewards, presumably) when depositing $75k for 90 days
- 10,000 points annual bonus when holding a checking account and credit card
- 75,000 points bonus + $500 back when taking out a Chase mortgage
- .50% discount on some home equity and car loans
- 500 free trades
- No ATM fees
- No foreign exchange fees
- Various other benefits and perks
The cost to be part of this Chase relationship? Two options:
- Either hold $75,000 with Chase
- Or pay $25 per month
Obviously Chase may have made changes to the program since the survey was sent out but I’m 85% confident that Sapphire Banking will be rolled out on August 18th (or around that date). Chase is eager to convert Chase Sapphire Reserve customers and high other value individuals into other more profitable products to help recoup the extremely high customer acquisition costs involved with these customers.
If you put $75,000 into a 2% APY account for 90 days you’d earn ~$370 so there is a real opportunity cost involved in having these funds with Chase (especially when they are going to offer you an APY near 0%), but for some it will make sense to get the sign up bonus (60,000 points in most cases). Will/would you sign up for this new product? It will also be interesting to see how this affects Chase’s Private Client program as well.
I know have to make an addendum to my original comment: After having gone down to my local Chase branch the information that I received about military getting fee waived was wrong. They do not waive the $25 fee unless you have $75,000 in assests with them.
Since active duty, retired, and veterans get the fee waiver I’m converting my Premier account to a Sapphire account.
I’m currently BofA plat client and earn 2.625/3.5 with BofA Premium card. If they can bump up their chase cards earning %, I’d jump on it. Otherwise I’m fine with BofA
How does this compare side-by-side with CPC?
Will do a comparison when the official details are released.
This seem pointless (lol) unless you naturally have $75k with Chase. Nothing about that would lure me in save the sign up bonus but then I’d cancel. Annual bonus isn’t worth that kind of cash, mortgage should be best rate/provider not “here’s points”, same applies for loans, everyone gives free trades, no ATM + FX fees is fairly standard.
Give me .5x more on CSR and we can talk.
Actually the oppertunity cost can be 0. Buy a money market fund such as VMMXX, and the risk is so low that can be ignored for the 3 months period, and the return is as high as the best savings account.
That’s only if VMMXX qualifies, it might have to be a cash balance.
Looks like they probably will require cash, but we don’t know for sure yet.
I qualify for the premiere checking with securities so I would hope it would be the same.
I just spent 2 hours with Chase Private Client banker today… he said Private Client starts at $250k
Yeah, they can get you into the program with much less tho.
Really? Do you know how low they’ll go to let people in? I have ~$90k in liquid and another ~$100k in investments. I wonder if I have a chance to get in with Private Client. I’d love to get my hands on that Morgan Reserve card.
For CPC? Some people have been let in with next to nothing. You definitely have a chance. I think the Morgan Reserve is reversed for higher networth individuals than CPC tho..
Did you initiate the CPC conversation or did they reach out to you?
chase already has a 75k level. this means they expect customers to be as stupid as possible given the current pokemon go type of hype around “free travel”. I dont need my UR taxed or restricted in any way.
i buy rental homes… so I’d be all over the mortgage deal.. 75k points for a mortgage…. count me in x3!!!!
first of all, JPM Chase would be my last choice for commercial real estate and investment property mortgages. there are many other banks better suited for such activity. but second, 75k UR under a different classification vs CC UR would make me never consider JPM.
Why would UR points be taxed?
Celia, all UR not earned from personal credit cards are taxable. UR earned on business cards or on checking/savings accounts is taxable. Only the UR earned on personal credit cards is not taxable, as it is a rebate.
Appreciate the response. I get that cash bonuses are taxed but I’ve never had points taxed. Still, since I have a reserve card and a checking account at chase already, I’ll take $100 annually, even if it’s taxed. Between that and the $300 travel credit combined with 1.5 travel availability, it’s a decent deal.
How many people paid taxes on their Thank You Points earned from banking? Not that many I suspect. It’s what you are supposed to do versus what people actually do, and also valuation of the benefit.
This is the first I’ve heard that points from business cards are taxable. Source?
From what I understand you’re supposed to report rebates, etc, you got for your business purchases on your business taxes at the end of the year.
That assumes that business cards are used for business purchases. The T&C for business cards typically make that restriction, but I’ve never heard of it being enforced and I suspect most readers of DoC who have business cards use them for non-business expenses. The IRS probably doesn’t care what you use your credit cards for.
Willing to do this if they actually have a decent APR for savings. Other than that, screw-off.
their savings rates suck but they do offer easily churnable checking/savings accounts… I’ll be getting a min $1500 in bank bonuses from Chase this year.
How many accounts did you churn to get 1,500?
FWIW, I heard similar details in Sept 2016 shortly after the CSR card came out from a Private Banker. He made it sound dependent on the brokerage side (assuming they needed more $$$ in brokerage accounts). The Banker said that it would roll out by YE 2016.
If so, this has been in the works for quite some time, maybe Chase really needs a good reason to pull the trigger to make this reality. I think like CSR, it’d keep other big banks on their toes, and prompt BofA to keep their Plat. rewards competitive or refreshed.