[Targeted] Chase checking customers get 50,000 Ultimate Rewards pts with 100k deposit
 

There's a new Chase offer out as of this morning offering (many/some/all?) Chase checking customers who are NOT already Private Client customers 50,000 Ultimate Rewards points for depositing $100k and bumping up to CPC or Platinum Premier. Cash must be left for 3 months to earn the 50k UR.

I went to a branch and patiently got answers to what I think are all the applicable questions which I posted here.

Rewards earned through banking activity other than card spending may be taxable. Did you ask if Chase will issue a 1099 for the points?

Great question, mia. By the 4th call he made I forgot that question (I had thought of it but lost the thought ;-) ). I'll send him an email now and ask.

My guess is no. Why? They may value the pts at 0.01 each so at $500 they wouldn't have to issue a 1099. Pure speculation on my part. :)

Your speculation is wrong. You may be thinking about the AA miles Citi Offer. Miles have no fixed value, quite different from the UR pts. Citi sends out 1099 on TYP bonus earned from opening banking accounts IIRC.

All bonuses earned from banking side that can have a fixed valuation method are taxable.

Chase routinely sends out / put it online, banking account opening bonuses. We do the Saving account each year, depositing 10K for $150 or $15K for $200 depending on the offer - never failed to get a 1099. In fact on the docs you get when opening the account, the 1099 is specifically mentioned.

This offer is an effective 2% APY given the duration to earn the bonus is 3 months.

i thought citi got hit with a lawsuit and had to settle recently

https://hirschairlinemilessettlement.com/

i hope this sets a precedent and ends the nonsense of sending 1099s but IANAL..

Would depend on how the 1099 is classified. Most banks issue 1099-INTs when the "interest" paid is >$10, however 1099s for vendors is usually the $600 min. To be safe, if I were going for this offer I'd be prepared to get a 1099 for $500 in interest income.

For those of you that have $100k to deposit, do you transfer from other banks, deposit cash, or...?

From the email:There is no indication of what dollar value will be imputed to 50k points. Who wants to take one for the team? :D

The logical guess would be $500 since this is what these points could be redeemed for cash.

I have reached back out to the CPC banker who has been graciously making phone calls around Chase on my behalf. He did confirm what NSX posted that it is considered as interest income and will be taxable and WILL generate a 1099-INT (because banks use a $10 threshold rather than the $600 "vendor" threshold for a 1099).

I have asked him to make some calls to see if he can find the value that will be assigned explaining that Chase can basically "pick a value" (though I agree 1c/pt would be rational, Citi wasn't rational) and that would greatly affect the value of the promo.

He agreed to try and get back to me later today or tomorrow.

Is there a monthly fee for this type of checking account? One would think, with the taxes you need to pay on the $500 ($200 or so?) and a monthly fee, this isn't that great a deal.... you cant even transfer them to Southwest any more for A-list or Companion benefits (due to new rule)....

I wonder if this has to be cash only or can it be from an investment rollover.

Currently in the market to roll over my 401k from prior employer and if qualified, this would be a major bonus for me.

Short answer: nobody at Chase has any idea what they will value the points at. Get them now and find out your tax liability later....

More details in my post: I got the answer on the 1099 value. Sort of.

:mad:

It's a reserve card, which allows you to buy travel at 1.5 cents per point. That's the logical value to assign.