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If you have $ 75,000, Chase has good news for you.
Hunt
JPM, + 0.39%
announced Thursday that it was offering 60,000 points to customers who are using a new "premium check account," called Sapphire Banking. Each Chase point is worth around two hundred, according to The Guy Points, a website that scores points every month. That makes the premium of about $ 1,200.
The new account is based on the success of Chase, Sapphire Reserve and Sapphire Preferred credit cards, the company said. We want to create a similar value for a bank account under the Sapphire brand, "said Jennifer Piepszak, CEO of Chase Card Services.
Of course, there is a trap. Clients must have at least $ 75,000 in deposits or investments to qualify. These investments must be held at Chase and can not be retirement investments. If customers meet these requirements, they will also have access to a new digital investment platform called YouInvest by JPMorgan, which offers stock and non-commission ETFs with $ 0 account limits.
In addition, existing Chase audit account customers who do not have the $ 75,000 minimum can upgrade to a Sapphire account, but this will cost a monthly service fee of $ 25.
This is not the first time Chase has been trying to attract customers with points. In addition to Chase Sapphire cards, the company also offered 100,000 points to customers opening mortgages in Chase.
With this new offering, Chase seems to be courting wealthy clients, said Brian Riley, director of credit counseling at Mercator Advisory Group, a Massachusetts-based payment consulting group. The average current account in the United States contains only $ 3,000, he added.
Creating a sense of connection between Sapphire products could help customers become familiar with Chase's digital investment platform, he added.
Competition for digital customers has become important, as more and more financial technology companies have entered the investment and wealth management business, said Kendrick Sands, Head of Consumer Credit at Euromonitor International. This has led to the money of traditional financial institutions.
"Consumer confidence in financial technology companies has increased, while overall satisfaction with financial institutions has declined," he said.
In addition, as the Federal Reserve raised interest rates, which means banks are paying more to borrow money, banks are trying to attract more deposits, he added. They will then use this money to generate income by lending.
Kimberly Palmer, an expert in credit cards in the personal finance industry, said that consumers with $ 75,000 worth of liquid assets can get better returns if they put their money in another type of account, for example an interest savings account. the company NerdWallet. Some online banks only, such as Marcus of Goldman Sachs
GS + 0.08%
offer 1.8% or more on savings accounts.
Once Chase has tested this program, he could finally extend it to accounts that have less than $ 75,000, said Riley. "Chase can modify the product to address a qualified but less wealthy base, with interesting banking options," he said.
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