JPMorgan Chase wants to lure wealthy, young customers to its fresh Sapphire bank account.
The plan? Offer 60,000 credit card points.
The bank said Thursday in which Sapphire card customers who open a fresh Sapphire checking account beginning in October can earn the signing bonus, which Sapphire Reserve cardholders can redeem for $900 in travel money.
however the allotment is usually contingent on customers creating at least $75,000 in deposits along with investments.
Chase first launched its Sapphire bank account in late August.
The perk, along with the account itself, is usually part of the bank’s ploy to attract along with retain wealthy Millennials, which have flocked to its favorite Sapphire credit cards.
By expanding the Sapphire brand, the bank hopes to deepen its relationship with loyal customers as they grow their savings along with make big financial decisions like buying a house, said Matt Massaua, general manager of Chase Sapphire Cards.
CEO Jamie Dimon has said before in which he sees Amazon Prime as a design, noting in which the platform keeps adding services for users to improve its value.
Sapphire bank account holders will also get free stock trades on JPMorgan’s You Invest platform, which debuted last month.
“This specific account is usually a real example of how we’re rewarding our customers for their relationship,” Jed Laskowitz, head of You Invest, said in a statement.
The largest US bank also wants to stay from the game as competition for deposits heats up.
Online bank accounts, such as the one offered by Goldman Sachs’ Marcus, have been drawing in fresh customers with interest rates in which are significantly higher than those for traditional checking along with savings accounts.
The Sapphire brand has been a huge success among younger customers, which ran to the luxury Sapphire Reserve card in 2016 when the item launched which has a 100,000-point sign-on bonus. More than half of Sapphire cardholders are Millennials, according to Chase.
Competitive rewards packages are Great for recruiting fresh customers. however they’re expensive for companies.
Chase reported a $900 million revenue loss in 2017 due to “headwinds” in their credit card portfolio, specifically, “investments in Sapphire Reserve along with different notable items,” according to an investor report coming from February.
CNNMoney (fresh York) First published September 13, 2018: 1:58 PM ET