JPMorgan Targets Rich Millennials With 60,000 Points For Sapphire Checking Account
(Photo: REUTERS/Amr Alfiky)
JPMorgan announced on Sept. 13 a 60,000-point bonus for its credit card users who opened a new Sapphire checking account. The points when redeemed for travel can be worth to as much as $900.
Apart from travel points, all rewards system that is usually acquired by using credit cards is included in the bonus points.
To be eligible for the 60,000-point bonus system, users have to bring a minimum $75,000 in deposits or investments. The money should stay with the bank untouched for the next three months. Account holders who were automatically shifted into the new Sapphire checking account and who have existing $75,000 money in their accounts are not qualified for the bonus.
The offer will officially begin in October according to CNBC. Those who will qualify for the 60,000 points will be awarded 45 days after their required amount of investments and deposits sit in the bank for 90 days. CNBC added that the 60,000-point bonus can be loaded with the 50,000-point-sign-on bonus given to new signatories of the Sapphire Reserve credit cards. It can also be stacked with the 75,000-point bonus for credit card account holders who have mortgages through the bank.
CNN reported that the new bonus system is JPMorgan Chase's strategy to attract more and retain the affluent Millennials. Matt Maassua, general manager of Chase Sapphire Cards, said the nation's biggest bank want to establish a long-term relationship with the younger demographic to be able to assist them along as they transition from one financial decision to another, like applying for loans, making investments, up until they purchase their new homes.
CEO Jamie Dimon said the model for the bonus system was patterned after the Amazon Prime where users are given more services to increase its value.
Greg McBride, chief financial analysts at BankRate.com, told USA Today that JPMorgan's offer for VIP treatment and access to lounges for customers who are not premium members is "uncommon" to banks.
The nation's largest bank announced the Sapphire checking account in August. It comes with perks including VIP access to Chase members-only lounges in events like the upcoming concerts by Marron 5 and Drake. The new platform also provides unlimited free trades on JPMorgan's newly launched brokerage app, the You Invest.
JPMorgan Chase announced the You Invest on Aug. 29. The new digital investment platform offers account holders 100 commission-free online stock and ETF trades. You Invest was launched within the bank's mobile apps and websites. The platform makes it easy for both new and long-time investors to stay invested.