JPMorgan Chase is pulling out all the stops to get wealthy, young customers to open a new Sapphire bank account. The bank announced that customers who open a new Sapphire checking account, beginning in October, can earn 60,000 rewards points, which Sapphire Reserve cardholders can redeem for $900 in travel money.
Last month, the financial institution (FI) announced it was expanding the Sapphire credit card brand into new areas of personal finance, including checking accounts. The bank changed the Chase Premier Platinum accounts to Sapphire Banking accounts, which have a $75,000 minimum for deposits. With the new checking accounts, customers will get access to sporting events and other entertainment, just as Sapphire Reserve credit card customers do.
According to a company report, the Sapphire Reserve card is popular among millennials because of the generous rewards points, which cater to their desire to travel. Customers will also get a reduction in some undesirable fees, including wire transfer fees and foreign exchange fees at ATMs outside of the country. Later in 2018, Chase will offer Ultimate Rewards points as a sign-up incentive to new Sapphire Banking account holders.
The bank hopes the expansion of the Sapphire brand will deepen its relationship with loyal customers as they focus on saving more and making major financial decisions, like buying a house, said Matt Massaua, general manager of Chase Sapphire Cards, according to CNN Money. In addition, Sapphire bank account holders will get free stock trades on JPMorgan’s new You Invest platform.
“This account is a real example of how we’re rewarding our customers for their relationship,” said Jed Laskowitz, head of You Invest, in a statement.
However, while competitive rewards packages can successfully lure new customers, they’re also expensive for the companies offering them. Chase reported a $900 million revenue loss in 2017 due to “headwinds” in its credit card portfolio, specifically, “investments in Sapphire Reserve and other notable items.”