Talk of joining Chase Private Client is all the rage these days. Rumor has it, joining Chase Private Client makes it easier to get approved for your favorite rewards cards – maybe to the point of exempting you from the 5/24 rule.
As someone who banks exclusively with Chase and even has a mortgage with them, I’ve been invited into this program more than once. The thing is, no matter how much I want all the Chase cards they will give me, there’s no way I would ever pull the trigger on this one.
What is Chase Private Client?
In case you’re not aware, Chase Private Client is basically a VIP program created for their best customers. Once you become a member, you get access to a private banker who can help you plan your estate, pick your investments, and formulate a plan to reach your long-term investment goals.
Of course, not everyone can become a member of Chase Private Client. For starters, this program is only available to individuals who maintain an average daily balance of $250,000 or more in any combination of qualifying deposits and investments. In other words, you need to have at least $250,000 on deposit with Chase – either in savings, checking, or any combination of investment or retirement accounts.
Why Would Someone Join Chase Private Client?
This is the part that throws me off. Why in the world would anyone want to keep $250,000 on deposit with Chase?
I mean, interest rates are notably low across the board. But if you’re going to hoard cash, you should at least try to get the highest interest rate you can. And right now, online banks like Ally Bank and Synchrony Bank are beating interest rates offered by the big banks by a mile.
Of course, you can always transfer all of your investments over to Chase to make up the shortfall. But, why?
For the way I invest (low-cost index funds), doing so could be a financial disaster. Since we’re self-employed, we use Vanguard for all of our investments to get the lowest investment fees out there. If we didn’t use Vanguard, we would probably use Fidelity instead.
In an effort to compare fees and fee schedules, I called Chase to get the run-down. Obviously, it was almost impossible to get a handle on the fees their investments account charge consumers, simply because I would have to actually pick investments before I could find out. Still, from what others have reported, it appears you’ll pay Chase handsomely to actively manage your accounts. And since the average Vanguard fund expense ratio is 82 percent less than the industry average, I’m willing to bet moving my investments to Chase would leave me a lot worse off.
Final Words
Since we’re already paying some of the lowest fees on our investments, switching things up to earn more Ultimate Rewards points is downright crazy. Beyond that, we’re pretty hands-on when it comes to retirement – as in, I’m not sure I want the “help” of a Chase Private banker when it comes to planning our financial future.
On the other hand, I can see where joining CPC makes sense for some people. If you want guidance as you plan for retirement, joining a program like this one can make sense in lieu of, or in addition to, hiring a personal financial advisor.
At the end of the day, only you can decide whether a program like CPC is worth the hassle. But before you join, you should read the fine print and think about not just what you’ll gain – but what you’ll lose, too. If you end up paying higher fees, the “extra” Chase points you earn could cost you dearly.
What do you think about Chase Private Client? Would you join? Why or why not?
[Image via Getty]