Chase Sapphire Reserve 50k points for private banking checking relationship

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walletless
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Chase Sapphire Reserve 50k points for private banking checking relationship

Post by walletless » Wed Oct 11, 2017 10:34 pm

I have a CSR since October last year, my renewal is coming up soon. I am not planning to renew, but instead downgrading to a free category card.

Today I received a call from a banker at my local Chase Bank branch with an offer to convert my checking account to a private banking relationship account. He told me that I have to move $100,000 in New funds to this account & maintain the balance for 3 months to get 50k bonus points (worth $500). There will be no 1099-INT for this bonus according to him. He however was unsure if I can avail this offer without renewing the CSR card. The banker confirmed that I can downgrade back to my regular checking account after 3 months & there will be no need to maintain any minimum balance after that.

I've been saving money towards down payment on a house & most of it is locked in Ally no-penalty CD earning 1.50%. So essentially, my opportunity cost of taking this offer is $375 (vs $500 plus tax savings). At the surface, this seems like a good offer assuming I'll not be required to renew the CSR card ($450 annual fee).

Has any one else received this offer, and if so what are your thoughts on this?

mega317
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by mega317 » Thu Oct 12, 2017 12:03 am

Would I go through this process for ~250 bucks (in my tax brackets)? Probably. But from your description it seems like it's dependent on having the CSR, which you would have to renew before 3 months are up. So you better be sure about the terms.

You should figure it out and decide soon. Every minute you spend reading posts in this thread reduces your hourly rate on the offer.

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whodidntante
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by whodidntante » Thu Oct 12, 2017 12:12 am

I don't think it is a good offer. There are several checking and savings account bonuses that are more lucrative though you will have to do more than one. You can even get a stockbroker to pay you $500 on 100 grand.

If you want to become a chase private client however, you might as well let them pay you to do it.

DEBTINATOR
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by DEBTINATOR » Thu Oct 12, 2017 12:14 am

I received the same phone call and offer yesterday. Didn't have time to find out the details and I've got funds tied up at TD Ameritrade.

Curious to know some of the terms and conditions and offer end date though.

Spirit Rider
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by Spirit Rider » Thu Oct 12, 2017 12:55 am

I would make the following point. Regardless whether you get a 1099 or not. Cash bonuses to open a checking account are taxable. The fact that the bonus is credit card points may or may not be relevant.

IRS has said that bonuses for credit card accounts are not taxable because they constitute rebates.

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heartwood
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by heartwood » Thu Oct 12, 2017 1:08 am

Is this all about the points? Perhaps someone could mention, in a sentence or two, what private banking checking relationship at Chase is and how it functions. AUM fees?

To move $100k to Chase would you have to sell something, perhaps with a capital gain effect? Or do you have $100k sitting somewhere in cash?

For the facts in evidence, I'd pass for 50,000 CSR points.

Inverted Pyramid
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by Inverted Pyramid » Thu Oct 12, 2017 7:29 am

It depends how you use those points. Since chase locked down their core credit cards with the 5/24 rule sign up bonus UR points can be hard to impossible to come by. If you just use them for cash 50k = $500 probably not worth it. If you use them for flights then the value goes up southwest is 1.6cent per point that bumps it up to $800 now it's borderline. If you already have a lot of UR points and these 50k will get you over the finish line to book a first class flight abroad then that could make those worth 5-10cents per point making those 50k worth $2,000-$5,000k That is most certainly worth it, but those international 1st class flight are few and far between and part of the fantasy the travel blog push, so unless you already found a flight/destination and can book asap i wouldn't value them so highly.

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walletless
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by walletless » Thu Oct 12, 2017 2:33 pm

DEBTINATOR wrote:
Thu Oct 12, 2017 12:14 am
Curious to know some of the terms and conditions and offer end date though.
They gave me a small flyer but it did not have any fine print conditions listed on it, unfortunately. The offer requires you to talk to a banker to get all fine print.
Spirit Rider wrote:
Thu Oct 12, 2017 12:55 am
I would make the following point. Regardless whether you get a 1099 or not. Cash bonuses to open a checking account are taxable. The fact that the bonus is credit card points may or may not be relevant.

IRS has said that bonuses for credit card accounts are not taxable because they constitute rebates.
Thanks, this is very useful information, making the offer less enticing.
heartwood wrote:
Thu Oct 12, 2017 1:08 am
Is this all about the points? Perhaps someone could mention, in a sentence or two, what private banking checking relationship at Chase is and how it functions. AUM fees?
There is no aum since the money is being held as cash. My intention is to cut off that relationship once 3 months expire.
heartwood wrote:
Thu Oct 12, 2017 1:08 am
To move $100k to Chase would you have to sell something, perhaps with a capital gain effect? Or do you have $100k sitting somewhere in cash?
I have cash sitting in ally no penalty CDs earning 1.5% - this is money towards a future down payment which I'll not need in 3 months.
heartwood wrote:
Thu Oct 12, 2017 1:08 am
For the facts in evidence, I'd pass for 50,000 CSR points.
I'm starting to agree on that. Especially since I'm not renewing the CSR card where the points could be with 1.5x towards travel.

Spirit Rider
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by Spirit Rider » Thu Oct 12, 2017 3:36 pm

walletless wrote:
Thu Oct 12, 2017 2:33 pm
Spirit Rider wrote:
Thu Oct 12, 2017 12:55 am
I would make the following point. Regardless whether you get a 1099 or not. Cash bonuses to open a checking account are taxable. The fact that the bonus is credit card points may or may not be relevant.

IRS has said that bonuses for credit card accounts are not taxable because they constitute rebates.
Thanks, this is very useful information, making the offer less enticing.
In case I wasn't clear. I'm not saying they are taxable.

Cash bonuses to open a checking account are taxable. Points for opening a credit card account and rewards programs are consider rebates and not taxable.

With CC points for opening a checking account, I just don't know if they may or may not be taxable].

SlowMovingInvestor
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by SlowMovingInvestor » Thu Oct 12, 2017 3:40 pm

Spirit Rider wrote:
Thu Oct 12, 2017 3:36 pm
walletless wrote:
Thu Oct 12, 2017 2:33 pm
Spirit Rider wrote:
Thu Oct 12, 2017 12:55 am
I would make the following point. Regardless whether you get a 1099 or not. Cash bonuses to open a checking account are taxable. The fact that the bonus is credit card points may or may not be relevant.

IRS has said that bonuses for credit card accounts are not taxable because they constitute rebates.
Thanks, this is very useful information, making the offer less enticing.
In case I wasn't clear. I'm not saying they are taxable.

Cash bonuses to open a checking account are taxable. Points for opening a credit card account and rewards programs are consider rebates and not taxable.

With CC points for opening a checking account, I just don't know if they may or may not be taxable].
BankDirect gives AA miles for opening and operating an account, and does not send 1099-INTs. Miles aren't the same as points, but close enough

aqan
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by aqan » Thu Oct 12, 2017 4:47 pm

I received the call too but the guy didn't offer me any points. anyone setup an appointment yet?

spammagnet
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by spammagnet » Thu Oct 12, 2017 10:48 pm

walletless wrote:
Thu Oct 12, 2017 2:33 pm
There is no aum since the money is being held as cash. My intention is to cut off that relationship once 3 months expire.
Confirm that you can close it in 3 months without them clawing back the bonus. It may be that you can reduce the balance in three months, but can't close it for 6 months.

That is the case with a Chase checking and savings account that I opened for a total of $500. BTW, that required only $15K in savings and I'm reducing that to $1,800 combined balance later this month. I will no longer need $15K to earn the bonus but I want to avoid checking account fees, hence the $1,800 combined balance until January.

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walletless
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Re: Chase Sapphire Reserve 50k points for private banking checking relationship

Post by walletless » Fri Oct 13, 2017 4:31 am

spammagnet wrote:
Thu Oct 12, 2017 10:48 pm
walletless wrote:
Thu Oct 12, 2017 2:33 pm
There is no aum since the money is being held as cash. My intention is to cut off that relationship once 3 months expire.
Confirm that you can close it in 3 months without them clawing back the bonus. It may be that you can reduce the balance in three months, but can't close it for 6 months.

That is the case with a Chase checking and savings account that I opened for a total of $500. BTW, that required only $15K in savings and I'm reducing that to $1,800 combined balance later this month. I will no longer need $15K to earn the bonus but I want to avoid checking account fees, hence the $1,800 combined balance until January.
Confirmed - the offer has two options:
(1) Open a Chase Private Client Checking account with $100K. This requires a minimum amount of $250K maintained between all Chase account after 1 year of opening (incl. IRA, brokerage, checking, savings, etc). The account must maintain 100K min balance until the first year anniversary.
(2) Another option is to open the Premier Plus Checking account which requires an average minimum balance of $15,000 to be maintained.

In either accounts, one can downgrade after 3 months to regular checking account or cancel the account fully for no penalty.

At least that was the offer that the banker read out to me in person when I was at the branch today.

Unfortunately, they do require the CSR card to remain open at the time of points deposit in 3 months; so the offer was not very lucrative for me. The banker said she will call the card department to see if there is possibility of fee waiver. I don't think that will happen, but informed the banker that I would be interested if that was a possibility.

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