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A recent study by Northwestern Mutual Financial Corporation shows that the average American now has $ 38,000 in debt, not counting mortgages. Sean Dowling of Buzz60 has more.
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A customer uses an automated teller machine at a Chase Bank branch on Wednesday, January 14, 2015 in New York City. JPMorgan Chase announced Wednesday a 7% decline in profits in the fourth quarter, impacted by more legal fees and lower commercial revenues. (AP Photo / Mark Lennihan) ORG XMIT: NYML103(Photo: AP)

The benefits and rewards normally associated with credit cards, such as VIP treatment at major events, are now available in a current account offered by the country's largest bank.

JPMorgan Chase doubles its acclaimed Sapphire Rewards program by launching a premium account called Sapphire Banking.

The new current account offers customers a minimum balance of $ 75,000 to access Sapphire Lounges at concerts and sporting events, as well as a quick advance on tickets before sale to the general public and the opportunity to purchase seats. premium.

Customers also benefit from fee waivers and obtain non-commissioned online transactions in US-listed securities and exchange-traded funds on JPMorgan's new digital investment platform, You Invest.

It's not uncommon for banks to try to attract new customers by offering them fee waivers, refund offers, toll-free ATMs, airline miles and sign-up bonuses. . But rarely do they offer benefits such as VIP treatment at events to customers other than first-rate credit card holders.

"The new aspect is to attach non-bank benefits to the relationship outside of credit cards," says Greg McBride, Chief Financial Analyst at BankRate.com. "Access to concerts and lounges – that's the new part."

To encourage the trend, banks need to establish a deeper multi-product relationship with their customers, especially Generation Y members who are entering their prime years of banking-related financial services, such as loans, investments and credit cards. credit. Schulz, chief industry analyst at CompareCards.com.

"The rewards are keeping the customer with the bank," he says.

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To this end, JPMorgan Chase said that in October, existing Sapphire credit card holders could earn 60,000 Ultimate Reward Points, worth about $ 900, according to CNBC, S & H. They bring in $ 75,000 in deposits and investments and open Sapphire Bank Account.

The high minimum balance must be maintained for 90 days for customers to earn reward points. The bank made a splash in 2016 by introducing its Sapphire Reserve card with a bonus of 100,000 points.

"We believe we can generate the same loyalty with the Sapphire card in a Sapphire bank account," said Thasunda Duckett, CEO of Chase Consumer Banking, in a statement.

However, some personal finance professionals warn that bank customers should be more careful that their money earns a competitive return rather than simply staying idle for the chance to save on ATM fees or increase their chances to obtain a ticket.

"It's easy to be distracted by offers with seemingly prestigious benefits," says Kimberly Palmer, an expert in banking and credit card services at NerdWallet, an online personal finance site.

She points out that if you do not really need $ 75,000 in an account that gives you easy access to your cash, you "will probably benefit from at least a portion of that amount on the stock market, either through a retirement account, which is a brokerage account. "

Investments in stocks of course offer the possibility of obtaining higher returns.

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