Chase Sapphire Banking

[Laeno]

So my wife today found some information about Chase Sapphire Banking.  Looks like for a minimum of $75,000 in checking and in investments, you get 60,000 Ultimate Rewards points... which are worth about $900 in travel benefits, at least.  No fee if you keep the $75000 in there, but $25/mo if you drop below it.

 

That's a lot of money, but I keep a fair amount in checking/savings, but mostly in savings in Ally for the higher rates.  However, we've also just hit the point where we're investing in a taxable account, which I JUST opened at Vanguard (literally this week).  Student loans are gone, haven't had car payments in years, 401k being maxed, both backdoor roths done, and HSA being maxed.  Only other big goal ATM is to save up for a newer car for me.

 

I was considering, if I do my taxable investing through Chase's investments, could get this bonus, and reap some of the other benefits of this upgraded checking account (no ATM fees, early ticket sales, and some lounges at sports venues), but would that be worth it?

 

All thoughts appreciated!

[Panscan]

This type of stuff is forrest for the trees imo. You're going to keep 75k somewhere for 900 in travel rewards and then possibly pay fees if your balance goes below 75? The interest difference alone with ally is probably worth more and thats cash.

I get it for like a 5k spend for 750 in travel rewards but maintaining 75k balance vs 5k spend is a huge difference.

I think the next question is why are you keeping 75k in cash

[Larry Ragman]

This makes no sense to me. You would allow $900 in travel to sway a decision on how to deploy $75,000? In the first place, do you really think Chase is a better place for your money than, say, Vanguard? Second, you can get 50,000 point by signing up for a Chase Saphire Preferred credit card and spending $4000. Get the card now and pay your taxes with it...

[Laeno]

I've already got the Chase Sapphire Reserve, and I have my main checking with Chase.  It already stays in the $20-40k range, especially this time of year with tax bills coming due. Sorry I didn't include that.  Also, the 60,000 points could just be turned into cash on my card, at $600.

I'll be investing a few grand per month into a taxable account going forward, so it wouldn't take me too long to have $75,000 between my checking and taxable accounts.  I think the math would likely work out that the bonus was worthwhile, despite the losses from the higher interest rate at Ally.

[Laeno]

Re: keeping the cash, we keep our emergency fund at $40k in a 2%+ savings account, as it makes the wife happy, though we could probably go smaller.  Plus a hefty savings for our frequent travel, taxes, and monthly paychecks in the $20k+ range...

[Larry Ragman]

Ok, but look at the fees Chase will charge for your investments. I’ll just go out on a limb and say over time you will save a lot, even relative to your points, by keeping the funds in Vanguard low cost or even Fidelity’s no cost mutual funds.

[FIREshrink]

Chase won't charge you anything to buy Vanguard index funds. They won't really even complain. I have Chase Private Client and am very happy with the service. If you already have a Chase relationship this seems like a no brainer.

[roncitro]

Worth it.  You get your 60K UR points after 3 months and you can invest the money as you wish in a Chase You Invest account.  I bought stocks with most of my 75K with zero transaction fees.  If you are just holding it in cash then get your money out after 3 months and put it into an account that earns 2% or more interest.  Sapphire banking is well below 2%.

[Raddoc123]

We have used chase for checking for years.  When this offer came around, we upgraded.  I parked about 120k in vanguard total market etf in the brokerage account.   For this I got a better checking account and am waiting for 60k points.  Only negative I see is if I transfer the etf out completely, it costs 75 dollars.  But I see no reason to do this. I see no advantage to holding all my money at vanguard or fidelity.

[Lithium]

Also waiting for my 60k points.  Transferred about 85k of ETF's in.  Will probably move out after I get the bonus.  Unfortunately the bonus is considered taxable income - 1 cent per point.

[Zaphod]

Thats far less than a standard savings rate of interest or short term bond fund, even 3 month bills.

[TXDDS]

I just did this myself. I feel like people hate on these offers without fully understanding or doing the math. I put $75k into VMSXX through chase, as I was going to have the money in cash anyways. I’ll get an additional 60k points (worth $900 minimum since I have sapphire reserve card). That’s a 1.2% return, which you argue is less than many online savings accounts, but I get that return in 90 days, not annually. Plus whatever the money market returns.

I’m open to be proven wrong, but seemed like a no-brainer to me since I love to travel.

[StarTrekDoc]

TXDDS wrote:

I just did this myself. I feel like people hate on these offers without fully understanding or doing the math. I put $75k into VMSXX through chase, as I was going to have the money in cash anyways. I’ll get an additional 60k points (worth $900 minimum since I have sapphire reserve card). That’s a 1.2% return, which you argue is less than many online savings accounts, but I get that return in 90 days, not annually. Plus whatever the money market returns.

I’m open to be proven wrong, but seemed like a no-brainer to me since I love to travel.

Click to expand...

Which annualizes to 4.8% for doing very little with money you have from A>B.  We already have Private client, so don't think we qualify .  Fidelity did this routinely for points in the past.  Move this between your BOA>Chase>Etrade.  with 75k-100k every 3-6 months.  Easy points.

[Zaphod]

If you dont mind the game its fine. As a longer term thing I dont think it makes much sense. I dont like annualizing things I cant repeat easily. Thats how people fool themselves into thinking they can be billionaires with options and such.

[FIREshrink]

Agree with zaphod if you leave the money in cash but you don't have to leave it in cash. I bought Vanguard admiral TSM and TISM funds; I was going to do that anyway. I like having the free everything banking and we needed a bank with locations in several states. Free wires. Free checks. No ATM fees. Could be worse.