Chase Sapphire Banking

[Revelate]

So maybe I just never asked previously or didn't understand the market, but what levels of assets on file with a brokerage house (Schwab or Fidelity) do you get your trade fees zeroed or even reduced non-trivially?

I know where I'm at, and I'm pretty sure you iced and a few others are well ahead of me financially... 75k or even 250k is doable for Chase's side, but it's going to be a while before I get to 1m or more.

[Anonymous]

I think the point of this account is based on investment amounts and then being rewarded with a checking account with no fees, etc. Lots of banks offer different levels of checking depending on how much money overall you have at a bank. On its own, Sapphire checking is nothing to write home about, clearly, Chase is looking at the bigger picture and trying to be your only bank. Word on the street says that there are going to be UR points involved as well. This will entail having a checking account, a chase UR credit card and an investment account. Reward bonus's for mortgages and other loans as well.

[iced]

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@Anonymous wrote:

I think the point of this account is based on investment amounts and then being rewarded with a checking account with no fees, etc. Lots of banks offer different levels of checking depending on how much money overall you have at a bank. On its own, Sapphire checking is nothing to right home about, clearly, Chase is looking at the bigger picture and trying to be your only bank. Word on the street says that there are going to be UR points involved as well. This will entail having a checking account, a chase UR credit card and an investment account. Reward bonus's for mortgages and other loans as well.

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Chase has already been playing the UR game for mortgages for a while now. Last year they were throwing 100k URs at anyone who got a mortgage through them.

[Anonymous]

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@Anonymous wrote:

I think the point of this account is based on investment amounts and then being rewarded with a checking account with no fees, etc. Lots of banks offer different levels of checking depending on how much money overall you have at a bank. On its own, Sapphire checking is nothing to right home about, clearly, Chase is looking at the bigger picture and trying to be your only bank. Word on the street says that there are going to be UR points involved as well. This will entail having a checking account, a chase UR credit card and an investment account. Reward bonus's for mortgages and other loans as well.

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Agreed. I think going forward almost every bank will start enhancing benefits for your "relationship" with them. 

The credit card competition has already matured. Now it's time to focus on actual banking accounts and investments. The more money you hold within your bank accounts, the more money the banks can invest; thus, you're earning them higher profits. 

I think some banks and credit unions fall far behind in the "relationship rewards" aspect and have an enormous amount of room to make their "packages" more attractive to members/customers. And then you have banks like Key who have rewards programs that give you points for bill payments, opening new accounts, using your debit card, using your credit card, automatic payments, etc... But the problem is the $40 annual fee and the points are next to worthless when counted individually.  

[Anonymous]

Absolutely. Chase has always had relationship rewards tiers. I recall having a large amount on deposit (back when the savings rate was 6% in 2006...) and a mortgage and I was in some decent checking account. With You Invest I think they are going to try to get all of a persons banking needs met. Not sure how or if it will work since other brokerages are going to do the same in response. We shall see.

That said, looking at Sapphire Banking as a stand alone checking product is not really the way to look at it... it only is feasible when linked to other banking products - which is the point.

[Anonymous]

I am with Vanguard and they have free ETF trades for all now since August 2018. Their tiers are as follows:

1. <50K = $7 for first 25 Stock trades - $20 after

2. 50K-500K = $7 per stock trade, access to fee based portfolio management

3. $500K- 1M = $2 per stock trade, access to financial advisor, fee based portfolio management, VanguardAdvantage Cash Acct.
4. Over $1M = $0 for first 25 stock trades, $2 after, access to financial advisor, fee based portfolio management, VanguardAdvantage Cash Acct., Trust services

So you see a 75K minimum at Chase give you more than a Vangard customer with 500K. 

I might open a You Trade account to do stock trades, because no minimum at 100free than $2.95/trade is pretty good, and if my acct gets over $75K then hell why not open a Sapphire checking acct at that point, after which all trades will be FREE.

[Anonymous]

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@Anonymous wrote:

I am with Vanguard and they have free ETF trades for all now since August 2018. Their tiers are as follows:

1. <50K = $7 for first 25 Stock trades - $20 after

2. 50K-500K = $7 per stock trade, access to fee based portfolio management

3. $500K- 1M = $2 per stock trade, access to financial advisor, fee based portfolio management, VanguardAdvantage Cash Acct.
4. Over $1M = $0 for first 25 stock trades, $2 after, access to financial advisor, fee based portfolio management, VanguardAdvantage Cash Acct., Trust services

So you see a 75K minimum at Chase give you more than a Vangard customer with 500K. 

I might open a You Trade account to do stock trades, because no minimum at 100free than $2.95/trade is pretty good, and if my acct gets over $75K then hell why not open a Sapphire checking acct at that point, after which all trades will be FREE.

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I think Chase should offer an annual bonus of UR's (every 365 days) for having at least $75,000 in assets with them. I'm sure 25,000 UR points would be sufficient. 

[iced]

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@Anonymous wrote:

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@Anonymous

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I think Chase should offer an annual bonus of UR's (every 365 days) for having at least $75,000 in assets with them. I'm sure 25,000 UR points would be sufficient. 

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I don't see this being very likely to happen.

The people I know with $100k to $1 million in brokerages would go for something like this but they're not profitable enough to warrant throwing in much of anything that actually costs the bank money. I can see freebies like no ATM fees and reduced trade pricing, but I just don't see Chase lobbing UR at these clients (which will cost Chase actual money, unlike ATM/trading benefits) when they generate so little revenue. 

The people I know with more than $1 million in brokerages don't care about toy throw-ins like 25k UR or CPC benefits - they value a dependable and trustworthy financial advisor. 

[Anonymous]

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@iced wrote:

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@Anonymous wrote:

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@Anonymous

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I think Chase should offer an annual bonus of UR's (every 365 days) for having at least $75,000 in assets with them. I'm sure 25,000 UR points would be sufficient. 

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I don't see this being very likely to happen.

The people I know with $100k to $1 million in brokerages would go for something like this but they're not profitable enough to warrant throwing in much of anything that actually costs the bank money. I can see freebies like no ATM fees and reduced trade pricing, but I just don't see Chase lobbing UR at these clients (which will cost Chase actual money, unlike ATM/trading benefits) when they generate so little revenue. 

The people I know with more than $1 million in brokerages don't care about toy throw-ins like 25k UR or CPC benefits - they value a dependable and trustworthy financial advisor. 

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Those people are obviously profitable if banks have special checking accounts for them. 

I'm sure Chase wouldn't waive overdraft, wire transfers, checks, and other fees if they weren't making more off of large asset customers than regular customers like you and I. Sapphire isn't aimed at people with $9,000,000 or more in their accounts... That's why they have JP Morgan Private Client accounts. 25,000 UR points costs Chase $250 a year (they pay bulk rates for airline miles and such). 

[iced]

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@Anonymous wrote:

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@iced

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Those people are obviously profitable if banks have special checking accounts for them. 

I'm sure Chase wouldn't waive overdraft, wire transfers, checks, and other fees if they weren't making more off of large asset customers than regular customers like you and I. Sapphire isn't aimed at people with $9,000,000 or more in their accounts... That's why they have JP Morgan Private Client accounts. 25,000 UR points costs Chase $250 a year (they pay bulk rates for airline miles and such). 

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Overdraft, wire transfer, checking, and ATM fees cost Chase nothing, just as a $200 change fee at United costs them nothing. In both cases, they know they can charge a fee for doing something that has an actual cost of $0 because the market will bear it, and it has the added bonus of being perceived as some value-add when they waive it for special members.

There's enough reciprocal agreements in place among the banking world that the cost to do inter-banking is effectively nothing for a bank like Chase. A $3 ATM fee is passed on to the customer when not waived, and when waived, it's likely that the other bank isn't charging Chase because they know there's a similar number of their clients using Chase ATMs. The banks scratch each other's backs to defray the cost there. To do the airline analogy again, when United books me on a Delta flight, it's unlikely they're forking over actual money to do it because they know there's a Delta passenger being booked on United somewhere at about the same time.

With URs, they might be able to defray a bit of it with airline partners like UA, but if you're cashing it out for 1.5 cpp on their portal or redeeming for statement credit/etc, that's cash out of their coffers.

Given how sensitive Chase is to churners, I'll go out on a limb and say they've done their homework and know there's enough people who would take the 25k URs and free trades then do nothing else whatsoever to generate any fees and just slowly suck cash out of them that they're asking for losses by doing something like this.