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It was not cheap for Chase to acquire all of their shiny new (often Millennial) Sapphire Reserve cardmembers, especially back when they were handing out 100,000 points worth $1,500 in travel booked through Chase to everyone who was approved and hit the spending requirement. I’ve numbers like 5 – 7 years, on average, for the bank to make that acquisition cost back, assuming that folks even keep the card for that long.
However, an interesting trend I have seen with this card is that it is being used as a “gateway” card of sorts to get customers to cultivate a more premium and long-term relationship with Chase. If Chase can turn Sapphire Reserve cardholders who have already demonstrated both a fondness for points and a willingness to pay a $450 annual fee for a credit card into customers who have high balance checking accounts, mortgages, and more with the bank, then I’d bet that the 5 – 7 year pay-back number drops precipitously.
As an example, over the summer, I saw them offering 100,000 bonus Ultimate Rewards points to those with a Sapphire Reserve or Preferred Card who obtained a mortgage through Chase. Now I am seeing bonus points offers going out to those with a Sapphire Reserve Card to try and entice them to develop a relationship with a Private Client Banker.
This week I personally received an offer for 50,000 bonus Ultimate Reward points (which they interestingly call Sapphire Reserve Ultimate Rewards points), if I meet with a Chase Private Client Banker and open a Chase Private Client Checking account with at least $100,000 in new money deposited within 10 business days of that meeting and maintain that balance for at least 90 days. To my knowledge, I don’t currently have any Chase checking accounts.
If you used those 50,000 points to book travel through Chase, they would be worth $750, so it is not an insignificant bonus, though also probably not high enough to go out of your way to come up with the $100,000 liquid dollars to move over to a new account for at least 3 months. I also would not be shocked if a 1099 was delivered to you at the end of the year for these points. While this specific offer talks about needing $100,000 in checking, the email also says that Chase Private Client is available to individuals who maintain an average daily balance of $250,000 in qualifying Chase deposits and J.P. Morgan Investments. The targeted email has an expiration date of December 2, 2017.
If you have the Sapphire Reserve Card have you also been receiving bonus offers to get you to open additional premium accounts with Chase?
Editorial Note: The opinions expressed here are mine and not provided, reviewed, by any bank, card issuer, or other company unless otherwise stated.