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hegemony

JPMorgan extends Sapphire card brand to checking accounts

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The Sapphire checking accounts are apparently available in-branch starting today, and online beginning on 10/15.

 

If I take $75,000 out of liquid savings at 1.9% APY I will lose:

 

[(75000 * 0.019) / 12] * 3 = $356.25

 

I will also get a 1099-INT for $600.  At that should cost me ~$250 in state and federal income taxes.

 

The way I use URs I will get $0.015 each.

 

So the net benefit would be approximately:

 

$900 value of URs

(356) forgone interest

(250) taxes on SUB

$294

 

I suppose I could open a brokerage account and park the money in a money market ETF or similar fund...

 

https://thepointsguy.com/news/faqs-chase-sapphire-banking/

 

Unlike credit card sign-up bonuses which are generally not taxable, Sapphire banking customers will be issued a 1099-INT form for their bonus points. Chase values the points at 1 cent each, so customers will owe taxes on the $600 value of the bonus. 

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Wouldn't the tax on the loss of mma interest offset much of the sub taxes although still not as good as non taxed cc sub

Sent from my Redmi 5 Plus using Tapatalk

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53 minutes ago, haydeno said:

Wouldn't the tax on the loss of mma interest offset much of the sub taxes although still not as good as non taxed cc sub

Sent from my Redmi 5 Plus using Tapatalk
 

Yes, true.  :good:  Add back ~$100 for that.

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I just got a SUB offer for Private Client; $1250 to "upgrade" needing to move 250k to chase accounts for 90 days. using 1.9% APY from amex as baseline, this is a terrible deal given the opportunity cost and 1099

Edited by hegemony

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Last week I got an invite to upgrade my plain old Chase checking account to Sapphire Banking. If I increased my balances at Chase to over $75,000 they'll give me a $750 taxable bonus. I only have about $3,000 at Chase. I don't plan to take them up on the offer. Chase is a weird bank when it comes to them closing accounts for mysterious reasons. You really need to keep your balances above $75K to avoid a $20 or $25 monthly fee, so consider that $75K tied up at the bank for as long as you're a Sapphire customer.

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Last week I got an invite to upgrade my plain old Chase checking account to Sapphire Banking. If I increased my balances at Chase to over $75,000 they'll give me a $750 taxable bonus. I only have about $3,000 at Chase. I don't plan to take them up on the offer. Chase is a weird bank when it comes to them closing accounts for mysterious reasons. You really need to keep your balances above $75K to avoid a $20 or $25 monthly fee, so consider that $75K tied up at the bank for as long as you're a Sapphire customer.

Some people do pay monthly fees because they cannot maintain required minimum balance or deposits. Someone has to pay for all that churning people here do. :-)

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