Chase "You Invest" + Sapphire Banking Linking

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itgeek
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Chase "You Invest" + Sapphire Banking Linking

Post by itgeek » Fri Nov 08, 2019 6:00 am

I am thinking of moving my banking relationship to Chase (Sapphire Level) from WF. Excellent banking benefits (specially no ATM or foreign exchange fees worldwide + free checks), ease of paying Chase Credit Card balances and ample branches in the area are key drivers.

However, I do not want to keep any balance in their checking account as it virtually pays no interest and instead keep about $100K in linked You Invest account. Does anyone have this setup where Chase will automatically liquidate money market fund in You Invest to clear a check issued from checking account? This way, I can meet minimum balance requirement to maintain banking privileges and continue to earn money market fund returns.
Last edited by itgeek on Fri Nov 08, 2019 6:22 am, edited 1 time in total.

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RickBoglehead
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Re: Chase "You Invest" + Sapphire Banking Linking

Post by RickBoglehead » Fri Nov 08, 2019 6:16 am

Have you ambled over to an amble branch and asked them if this is an option? Most bank accounts fund on overdraft but there is often a fee. Fidelity does allow the process you describe.
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cowdogman
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Re: Chase "You Invest" + Sapphire Banking Linking

Post by cowdogman » Fri Nov 08, 2019 11:20 am

I have this setup--Chase Sapphire checking and You Invest.

I agree with RickBoglehead, but I don't think what you suggest works for a couple reasons:

1. Because it doesn't. That is, I'm pretty sure there is no overdraft mechanism in You Invest.

2. Maybe more importantly, one of the drawbacks with You Invest is that the sweep account pays minimal interest (as compared to Vanguard and Fidelity) and so you do NOT want to keep any material amount of money in the sweep account (if you want a return on that money). I think the current rate is .03% pa.

What I do is keep a minimal cushion in my checking account (say $1,000 or $5,000) and don't reflect it in the balance on Quicken--and then try to try to keep my balance slightly above zero in Quicken--and if I fall below zero I have the cushion to protect me. It would be nice to have every dollar earning ~2%, but with Chase Sapphire checking I don't think you can.

sam1838
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Re: Chase "You Invest" + Sapphire Banking Linking

Post by sam1838 » Fri Nov 08, 2019 11:32 am

I have Chase You Invest, and I use VMFXX in it as my savings account.

There is no overdraft service like you described in Chase You Invest. I have tested it, and it takes a sale on Monday for the money to become available to transfer immediately to checking on Tuesday. I have all my bills set to pay on the first of the month, so I just scoop the excess out of checking into You Invest on the last day of each month.

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Sage16
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Re: Chase "You Invest" + Sapphire Banking Linking

Post by Sage16 » Fri Nov 08, 2019 5:38 pm

sam1838 wrote:
Fri Nov 08, 2019 11:32 am
I have Chase You Invest, and I use VMFXX in it as my savings account.
+ 1
Bogle on investing: Diversify, focus on low costs, invest for the long term. Don't speculate and don't be distracted by volatility.

smectym
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Re: Chase "You Invest" + Sapphire Banking Linking

Post by smectym » Fri Nov 08, 2019 11:23 pm

sam1838 wrote:
Fri Nov 08, 2019 11:32 am
I have Chase You Invest, and I use VMFXX in it as my savings account.

There is no overdraft service like you described in Chase You Invest. I have tested it, and it takes a sale on Monday for the money to become available to transfer immediately to checking on Tuesday. I have all my bills set to pay on the first of the month, so I just scoop the excess out of checking into You Invest on the last day of each month.
That’s right. Now, they will talk to you about “linking” You Invest to your Chase Sapphire checking, but that’s just for the purpose of making sure that they don’t charge you a steep monthly fee for not maintaining $75,000 in assets. But there is no overdraft or “settlement account” connection between Chase checking and the You Invest brokerage account.

UpperNwGuy
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Re: Chase "You Invest" + Sapphire Banking Linking

Post by UpperNwGuy » Sat Nov 09, 2019 2:13 am

Sounds to me like you are hoping Chase can be an all-in-one solution for your financial affairs (banking, investing, credit cards, etc). Unfortunately, neither Chase nor any other financial institution provides the best in each category. You will have to make compromises somewhere. Or you can use multiple institutions like I do.

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