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JPMorgan offers 60,000 points to sign up for its new Sapphire bank account

JPMorgan offers 60,000 points to sign up for its new Sapphire bank account

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Old Sep 13, 18, 5:13 pm
  #1  
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JPMorgan offers 60,000 points to sign up for its new Sapphire bank account

https://money.cnn.com/2018/09/13/new...ing/index.html

$75k in a checking account seems a little steep buy may be worth it just to park cash for 3 months
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Old Sep 13, 18, 7:29 pm
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You could also buy their fee-free stocks, u don’t just have to park cash.

but the thing I’m wondering is if you can get the 60K if you already have gotten a different checking account bonus in the past year.
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Old Sep 13, 18, 7:50 pm
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This sounds too good to be true! I don't have a problem parking 75 for 3 months for 60k UR points. Interest rate is .01%. I wonder if there are any risk of point claw back. Plus free stock trades is a nice perk.

On TPG there are saying that the points come with a 1099 and we will have to pay taxes on them. This could be a deal breaker...

I can't find much fine print on the bonus on the Chase website. Has anyone heard more on this?

https://thepointsguy.com/news/chase-...banking-bonus/

https://accounts.chase.com/sapphire/brand
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Old Sep 13, 18, 8:49 pm
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Originally Posted by flyguy6 View Post
This sounds too good to be true! I don't have a problem parking 75 for 3 months for 60k UR points. Interest rate is .01%. I wonder if there are any risk of point claw back. Plus free stock trades is a nice perk.

On TPG there are saying that the points come with a 1099 and we will have to pay taxes on them. This could be a deal breaker...

I can't find much fine print on the bonus on the Chase website. Has anyone heard more on this?

https://thepointsguy.com/news/chase-...banking-bonus/

https://accounts.chase.com/sapphire/brand
I paid some tax on CC bonus $. Maybe Chase and I think it is on the $300 CSR travel credit. I do not think we pay taxes on the SUB. The amount is negligible. It is not a deal breaker.

I plan to move some $$$ to open an account. It is good to park your $$ in more than one place.
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Old Sep 13, 18, 9:05 pm
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Originally Posted by RedSun View Post
I paid some tax on CC bonus $. Maybe Chase and I think it is on the $300 CSR travel credit. I do not think we pay taxes on the SUB. The amount is negligible. It is not a deal breaker.

I plan to move some $$$ to open an account. It is good to park your $$ in more than one place.
Normally I only pay taxes on cash signup bonus, not points. The tax on UR points can vary depending on how they are used, so I don't know how they would calculate the tax. If they value them at only $.01 and capital gains tax is 24% (depending on tax bracket) that could be $144 in taxes.

I am also wonder if this is a one time only promo or if it can be repeated like other Chase bank account promos after a wait period.

I will update what I find tomorrow when I speak to Chase branch rep.
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Old Sep 13, 18, 9:12 pm
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Originally Posted by flyguy6 View Post
Normally I only pay taxes on cash signup bonus, not points. The tax on UR points can vary depending on how they are used, so I don't know how they would calculate the tax. If they value them at only $.01 and capital gains tax is 24% (depending on tax bracket) that could be $144 in taxes.

I am also wonder if this is a one time only promo or if it can be repeated like other Chase bank account promos after a wait period.

I will update what I find tomorrow when I speak to Chase branch rep.
I just do not think we pay taxes on reward points. As you said, we can all value the points differently.

But the CSR $300 is cash. Some other cash credits are also taxed, but it varies.

The Chase free trade offer is clearly a winner here. I think they want to catch BA Preferred Reward program. I do not want to pay $5 or so at E*Trade, Fidelity or Schwabs. I do not care what they say about trade quality etc. That is BS.
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Old Sep 13, 18, 9:48 pm
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Originally Posted by RedSun View Post
I paid some tax on CC bonus $. Maybe Chase and I think it is on the $300 CSR travel credit. I do not think we pay taxes on the SUB. The amount is negligible. It is not a deal breaker.

I plan to move some $$$ to open an account. It is good to park your $$ in more than one place.
Originally Posted by flyguy6 View Post
Normally I only pay taxes on cash signup bonus, not points. The tax on UR points can vary depending on how they are used, so I don't know how they would calculate the tax. If they value them at only $.01 and capital gains tax is 24% (depending on tax bracket) that could be $144 in taxes.

I am also wonder if this is a one time only promo or if it can be repeated like other Chase bank account promos after a wait period.

I will update what I find tomorrow when I speak to Chase branch rep.
Same. I have only paid taxes on form 1099-INT for bank checking bonuses. But since points are not a direct cash currency, it is exempt from being considered a cash payment, just like all the credit card signup bonuses.
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Old Sep 13, 18, 10:32 pm
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Chase is trying to emulate Prime as reported. I doubt many customers can easily transfer the amount required to a Chase account. There is a great opportunity cost to do so from an investment account.
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Old Sep 13, 18, 10:39 pm
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Originally Posted by NauticalWheeler View Post
Chase is trying to emulate Prime as reported. I doubt many customers can easily transfer the amount required to a Chase account. There is a great opportunity cost to do so from an investment account.
Why?
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Old Sep 14, 18, 12:21 am
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Originally Posted by Explorer789 View Post
Same. I have only paid taxes on form 1099-INT for bank checking bonuses. But since points are not a direct cash currency, it is exempt from being considered a cash payment, just like all the credit card signup bonuses.
I wouldn't be too sure about that. If you dig around in the Citi forum and google, I believe many Citi checking account bonuses that were paid in Thank You points did receive 1099-INTs. Also banking TYPs weren't transferable to partners. Now since I don't think Chase has ever done a UR related banking promotion, we don't know how they'll treat this, but I would go into it expecting to get a 1099 and them to assign a value of 1 cpp, since that's what the cash out value of UR points are and be pleasantly surprised if they don't issue 1099s.
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Old Sep 14, 18, 12:31 am
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Chase periodically sends me mailers for $500 bonuses if I open an account for 6 months with any direct deposit. I don't bank with Chase but my mom put in 6x$100 DD and got $500 for it.

My point is, 60k UR shouldn't require such a steep balance.
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Old Sep 14, 18, 4:17 am
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Originally Posted by Gig103 View Post
My point is, 60k UR shouldn't require such a steep balance.
75k is a steep requirement but according to this are article Chase is doing this to target a specific demographic they want as customers. They also want to get more users on their new JPMorgan's You Invest platform that just launched.

https://www.localnews8.com/news/econ...ount/794514925
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Old Sep 14, 18, 7:45 am
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And you get a little bit more than "just" 60k UR as the account itself is premium too (if you actually use it)
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Old Sep 14, 18, 10:08 am
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I think a lot people get it wrong that you need to keep $75,000 cash in the account and hold it for many months. This is not what Chase wants you to do and they do not even want this kind of customers.

Chase wants to keep your WEALTH at its bank, be cash, stock, mutual funds, ETF, IRA etc. If you get those sitting somewhere that you are paying a fee, such as any of the brokers, or you get an IRA from your previous job, then this is the way to go.

If you keep the cash at Chase and move the $$$ out later, Chase may try to get the URs back.... They want some relationship. It is Sapphire Banking relationship. BA and Wells Fargo both are doing it. Also CitiGold.
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Old Sep 14, 18, 10:48 am
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Things that are not certain:

1) What point valuation will they use if they are going to issue you a 1099
2) Is it going to be like Citi where taxable points are not transferable to other people or other program?

Originally Posted by RedSun View Post
I just do not think we pay taxes on reward points. As you said, we can all value the points differently.

But the CSR $300 is cash. Some other cash credits are also taxed, but it varies.

The Chase free trade offer is clearly a winner here. I think they want to catch BA Preferred Reward program. I do not want to pay $5 or so at E*Trade, Fidelity or Schwabs. I do not care what they say about trade quality etc. That is BS.
Originally Posted by Explorer789 View Post
Same. I have only paid taxes on form 1099-INT for bank checking bonuses. But since points are not a direct cash currency, it is exempt from being considered a cash payment, just like all the credit card signup bonuses.
I remember Citi issuing 1099-MISC for Checking account Thank You Points about 5 - 6 years ago. Did they stop doing that? Citi used 1.6c/ TYP to issue a tax form back then IIRC.

Also, CSR $300 would be considered a rebate, so not taxable.
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