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Chase bank - The relationship bank

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Super Contributor

Re: Chase bank - The relationship bank


@KJinNC wrote:

@kdm31091 wrote:

@KJinNC wrote:

Congrats.

 

I'm sure Chase puts more value on relationships with larger deposits, direct deposits, and more age, but just curious if anybody has benefited from (say) opening a savings account and parking a few hundred dollars there, in six months or a year. Maybe that's too low to move the needle, but I'm thinking about doing that. In fact, I opened the savings account and just wondering whether to use it or not.


I cannot say whether it will definitely help or not help but to be honest a few hundred dollars is nothing to a big bank. Most banks don't really care about "relationship" unless you have a ton of money. The OP put 10k in savings, which is still not a ton of money, but I guess enough to see some prequalified offers. However, we have no way to know whether they would have gotten the same offers with only 5k in the bank, etc. Just too many variables.

 

There's also an opportunity cost to keep in mind because a savings account at Chase pays, what, 0.02%? Rates have dropped, but you can still get at least 1.50% in an online savings account.


Yeah - not worth it to me to move all of my banking there to possibly improve odds of getting a card I want but don't need (the Freedom rotating card and/or the Amazon Visa). I have a good thing going with Coastal. Member since 1987. And, I live in a state with a grand total of two Chase branches, of which the closest to me is about 35 minutes from my house. On the other hand, I don't care about the difference in interest rates on a few hundred dollars, so if that got me past 5/24, it would be worth it. I doubt it will, since it is peanuts I'm talking about. Just curious if anybody has tried it and has any anecdotal evidence one way or the other.


I was curious about this too. Many people say parking $300 in US Bank savings gets them around excessive credit seeking in relation to US Bank cards. $300 is the same to avoid fees on Chase savings and a Freedom is on my list. 




Message 21 of 51
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Established Contributor

Re: Chase bank - The relationship bank

Thank you very much @Aim_High !  Very helpful information and DP.  I'll definitely reach out to BOA this coming week, then ponder if it's worth following up with my local bank.  I do really like the idea working with a nationwide bank, with a broader line of services and benefits.  And, I've not seen anything coming close to a "relationship" from my local bank, kind of ironic.  I guess what I've learned about NFCU and  this discussion about Chase and BOA has set the bar high for any other FI or CU that I do business with.

 

I could qualify for their BOA's Gold program, to get my foot in the door, with their Preferred Rewards program.  I'd actually be interested in both their business and personal checking programs. Credit cards as available, given my scores.  And, as I burnt through my retirement funds on the way to the bottom, I need to begin an IRA or 401k program again.  I do travel so the Global Entry benefits are a positive.  I had followed an earlier business post by @imaximous and others which was very positive about BOA as well.

 

I realize it's going to take time for my scores to get back to where I want, but I'd rather recover with my key banking partners than to wait years until I get there.  Thank you again!!

Message 22 of 51
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Community Leader
Super Contributor

Re: Chase bank - The relationship bank

Chase doesn't care about relationships. They only care about how much money you have or how much you move through them. You can use them for 20 years and keep minimum limits and they will barely offer you anything. Drop 15k in there, they'll offer you private client, cards, auto loans, etc. I'm saying this as someone who worked on the back end in funding and auto. 

 

Personally, I stopped using them for the last 10 or so years. Employees got absolutely no benefits, so why keep using them? Barely kept any money in there. Once I got an auto loan, I direct deposited enough for the car payment. Still nothing for over a year. I then moved $200k through it over the course of 6 months and all of a sudden, I was approved for everything including another auto loan at 0% even though my score was in the low 600s and my current loan with them is at 9.99% If I went in to the bank, I was handed off to a private banker who would help me and try to get me to open a private client account. Once I moved the business to a credit union, all of the offers disappeared. If I go into Chase now, I'm helped by the teller. Chase doesn't care about relationships.







Message 23 of 51
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Frequent Contributor

Re: Chase bank - The relationship bank


@Aim_High wrote:

@EverForward wrote:

I would personally consider Chase again, but after burning them on 2 cards, it'd be a long road uphill to regain their trust, and frankly I don't blame them.  Alternatively, it seems best to begin fresh with a FI such as B of A, of course, I'll still have to prove my worth with them, as with every other FI, but nice to hear they do have some preferred programs.

 

Kind of irks me that my local FI seems, after a year+ with them, to be somewhat oblivious, hence my interest in looking elsewhere. I am planning on calling them Monday, guess I at least owe them that before I leave them.


I wouldn't say you "owe" them anything but if they care at all about their customers or if you think it might make a difference, you could ask to speak to a manager before you leave.  Some people don't like to "complain" but a customer with an honest gripe can give good feedback to a receptive manager who is willing to listen and knows there is always room for improvement.

 

For anyone interested, here's a little more about how Bank of America rewards relationship.  I do like how it's well-defined.

 

Just having a checking account at Bank of America boosts your credit card payouts by 10% when you deposit cash rewards.  So a Cash Rewards card paying 1%, 2% or 3% earns 1.10, 2.20% or 3.30% respectively.  That's a separate boost from the Preferred Rewards Program.

 

The Bank of America Preferred Rewards program requires total deposits in accounts and investments of at least $20,000.  That is the bottom level of the Gold tier.  Platinum starts at $50K.  Platinum Honors at $100K.   That's not just basic savings, checkings, CDs.  Bank of America bought Merrill Lynch in 2009, and investment accounts there count also.  Some people have rolled over IRA's or other long-term investments to qualify for higher Preferred Rewards status.   Depending on the tier, you receive a range of benefits including waived fees, higher interest payments on accounts (although it's still not impressive), reduced fees on loans, etc.  But for credit cards, it can really bump up your return.  Instead of just 10% back like you get with checking, you get credit card rewards boost of 25%, 50% or even 75% respectively based on tier status, and that applies to any credit cards you hold.  For a Cash Rewards card that pays 1% on anything, 2% on groceries or warehouse, or 3% on special category, that gives you:

 

  - Gold (1.25%, 2.5%, 3.75%)

  - Platinum (1.5%, 3%, 4.5%)

  - Platinum Honors (1.75%, 3.5%, 5.25%)

 

The only cap is that the 2% and 3% categories combined only pay that amount up to $2500 per quarter, $10K per year.

 

Even at Platinum Honors, the base rewards level of the Cash Rewards card is unimpressive at 1.75%.  There are lots of 2% or better cards.  With the exception of a couple of unicorns like the recent AOD FCU 3% cash back card which may or may last for the long haul, the highest paying cash back cards that have stuck around have maxed out at about 2.5% (USAA Limitless Cash Back.)   So Platinum or Platinum Honors clients would really benefit from having the Premium Rewards credit Card.  As I mentioned upthread, it's hard to get without relationship, as a minimum some banking accounts if not investments.  At face value, the card doesnt' look that impressive.  It charges a $95 AF.  And it only pays an uncapped 2% cash back on travel and dining out and 1.5% elsewhere, all uncapped.  Yawn, right?  It gets better.  There are credits, so if you travel you get Global Entry or TSA precheck reimbursed once every 4 years (value $25 per year.)  And you can be credited $100 annually for airline incidentals like checked bags or other fees.  So if you use all the credits, Bank of America is actually paying you an average of $30 per year just to carry the card!   This card is also eligible for the boost in credit card rewards.  So instead of 1.5% and 2%, you earn:

 

  - Gold: (2.5% travel-dining),(1.875% on anything else)

  - Platinum: (3% travel-dining),(2.25% on anything else)

  - Platinum Honors: (3.5% travel-dining),(2.625% on anything else)

 

These rewards are CASH payouts, so if you prefer flexible cash instead of dealing with more complex travel-limited MR-UR-TY points from AMEX, Chase, or CITI, this card might be attractive!

 

With the exception of those recent 3% "unicorn" cards (AOD FCU, USAlliance CU), that 2.625% has been the best available uncapped uncategorized cash-back rate that didn't require payment by Mobile Wallet. (US Bank Altitude Reserve pays 3% but only on Mobile Wallet payments and it carries a $400 AF, so allowance has to be made for offsetting part of that fee against cash back.  The travel credits only help with $325 of that.)

 

This is an example of some banks get more concrete defining how they reward relationship instead of leaving clients hanging and wondering what they are getting back for their deposits and loyalty.   I've seen very similar programs advertised by some other banks so there is industry imitation. 

 


I could possibly be wrong about this. Bank of America removed the 10% bonus on cash rewards when they switched to their new earnings structure (the one that allows you to choose a 3% category). Cardholders that had a Cash Rewards before the transition were simply grandfathered in and kept their 10% bonus for having a BoA deposit account without being part of the Preferred Rewards program. 

 

Let's not forget to add an asterisk next to investments, as one's 401K through their employer doesn't even count towards deposits for Preferred Rewards eligibility (which is ridiculous). 

Message 24 of 51
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Frequent Contributor

Re: Chase bank - The relationship bank


@Brian_Earl_Spilner wrote:

Chase doesn't care about relationships. They only care about how much money you have or how much you move through them. You can use them for 20 years and keep minimum limits and they will barely offer you anything. Drop 15k in there, they'll offer you private client, cards, auto loans, etc. I'm saying this as someone who worked on the back end in funding and auto. 

 

Personally, I stopped using them for the last 10 or so years. Employees got absolutely no benefits, so why keep using them? Barely kept any money in there. Once I got an auto loan, I direct deposited enough for the car payment. Still nothing for over a year. I then moved $200k through it over the course of 6 months and all of a sudden, I was approved for everything including another auto loan at 0% even though my score was in the low 600s and my current loan with them is at 9.99% If I went in to the bank, I was handed off to a private banker who would help me and try to get me to open a private client account. Once I moved the business to a credit union, all of the offers disappeared. If I go into Chase now, I'm helped by the teller. Chase doesn't care about relationships.


Chase offers people with $15,000 in deposits a Private Client relationship? I thought that was reserved for those with $250,000 or more in assets? 

Message 25 of 51
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Regular Contributor

Re: Chase bank - The relationship bank

Also, I consider that to be a relationship. I am not talking about having a bank account open with a couple grand in it. What I consider a true banking relationship would be direct deposit savings...etc. I run all my deposits through them and have over $10k in savings through them and they opened up their cards to me with a rather low score that others with better scores but no relationship may not get. (Also override the 5/24). So by relationship I meant a true relationship which is direct deposits... savings etc. 

Message 26 of 51
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Regular Contributor

Re: Chase bank - The relationship bank

Hello, I spoke to the branch about this actually and got some more information. The branch and chase in general

have different levels of preferred clients. They told me one of my prequals was a branch referral for opening a savings with 10k. They base it on a lot of factors including growth opportunities. I am in my early 20's but we move about 8k a month in direct deposits through them and save quite a bit monthly. The branch said they have a lot of different calculations but they valued us as a growth opportunity based on our spending and savings habits and our higher income for being "younger" leads to more potential down the line. I guess it's a loyalty building thing between the branch and who they value as their high potential customers. If they see you as someone who will flow more and more money through them and potentially get to a point where you become a "private client" or bring other business they may refer you to chase corporate as an important customer to them In particular. 

Message 27 of 51
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Valued Contributor

Re: Chase bank - The relationship bank


@Jds142 wrote:

Hello, I spoke to the branch about this actually and got some more information. The branch and chase in general

have different levels of preferred clients. They told me one of my prequals was a branch referral for opening a savings with 10k. They base it on a lot of factors including growth opportunities. I am in my early 20's but we move about 8k a month in direct deposits through them and save quite a bit monthly. The branch said they have a lot of different calculations but they valued us as a growth opportunity based on our spending and savings habits and our higher income for being "younger" leads to more potential down the line. I guess it's a loyalty building thing between the branch and who they value as their high potential customers. If they see you as someone who will flow more and more money through them and potentially get to a point where you become a "private client" or bring other business they may refer you to chase corporate as an important customer to them In particular. 


So they do have relationship banking. 

Scores, HPs/24 mos. (updated 10/09/20):
    Experian FICO Score 8 = 825, 1/24
    Experian FICO Score 9 = 813, 1/24
   TransUnion = 815, 1/24
    Equifax = 819, 0/24

Total 2019 rewards, incl. offers/deals = $1,709.07
Avg. rewards rate, incl. offers/deals = 3.92%

Total CL: $247,000

Cards (hover over for CL | interest rate | Date Opened):
Message 28 of 51
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Community Leader
Super Contributor

Re: Chase bank - The relationship bank


@CardNut wrote:

@Jds142 wrote:

Hello, I spoke to the branch about this actually and got some more information. The branch and chase in general

have different levels of preferred clients. They told me one of my prequals was a branch referral for opening a savings with 10k. They base it on a lot of factors including growth opportunities. I am in my early 20's but we move about 8k a month in direct deposits through them and save quite a bit monthly. The branch said they have a lot of different calculations but they valued us as a growth opportunity based on our spending and savings habits and our higher income for being "younger" leads to more potential down the line. I guess it's a loyalty building thing between the branch and who they value as their high potential customers. If they see you as someone who will flow more and more money through them and potentially get to a point where you become a "private client" or bring other business they may refer you to chase corporate as an important customer to them In particular. 


So they do have relationship banking. 


A "relationship" as long as you bring money to them. I don't see how that's any different from any other bank

Message 29 of 51
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Valued Contributor

Re: Chase bank - The relationship bank


@kdm31091 wrote:

@KJinNC wrote:

Congrats.

 

I'm sure Chase puts more value on relationships with larger deposits, direct deposits, and more age, but just curious if anybody has benefited from (say) opening a savings account and parking a few hundred dollars there, in six months or a year. Maybe that's too low to move the needle, but I'm thinking about doing that. In fact, I opened the savings account and just wondering whether to use it or not.


I cannot say whether it will definitely help or not help but to be honest a few hundred dollars is nothing to a big bank. Most banks don't really care about "relationship" unless you have a ton of money. The OP put 10k in savings, which is still not a ton of money, but I guess enough to see some prequalified offers. However, we have no way to know whether they would have gotten the same offers with only 5k in the bank, etc. Just too many variables.

 

There's also an opportunity cost to keep in mind because a savings account at Chase pays, what, 0.02%? Rates have dropped, but you can still get at least 1.50% in an online savings account.


This. Anecdotal evidence is anecdotal. For every story like this one, there's going to be another one where someone gets approved for high SLs with no relationship and a third story of someone with a relationship who got AA'd or denied. Unless someone on behalf of Chase tells someone explicitly "you're getting this because you have a ______ relationship with us" (aka the JPMR card), there's just no way of knowing what, if any, impact one's "relationship" has with them.

Message 30 of 51
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