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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?
This is one of the top premium cards out there since you earn 3x on all travel and dining and have access to great perks like a $300 travel credit each cardmember year, 50% more value when you redeem points for travel through Chase Ultimate Rewards and you get elite travel benefits like Global Entry application fee rebate, Priority Pass Select and special rental car privileges.
- Earn 50K bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year
- Named a ‘Best Travel Credit Card for 2017’ by MONEY® Magazine
- 3X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases. Plus, no foreign transaction fees
- Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards. For example, 50,000 points are worth $750 toward travel
- 1:1 point transfer to leading airline and hotel loyalty programs
- Access to 1,000+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select
- Up to $100 application fee credit for Global Entry or TSA Pre✓®