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Chase Private Client Review, Requirements and Fees


JP Morgan Chase Private Client review for 2018: account requirements, minimum balance, managed account investment fees, high net worth customers brokerage account. Chase Bank Private Client service credit and debit cards, banking rewards, and unlimited checking.



JP Morgan Chase Private Client Requirements


JP Morgan Chase Chase Private Client is the full service private banking version of the plain vanilla Chase bank account. The only Chase Private Client requirement is to have a regular Chase bank account with a minimum balance of $250,000 or above.


Chase Private Client No Pre-Set Spending Limit Cards with Rewards Points


The main thrust of the Chase Private Client account is a comprehensive suite of IRAs and Brokerage accounts with credit cards, lines of credit, and checking added for good measure. While the checking and credit cards that are offered by Chase Private Client are essentially standard Chase cards, the Chase Private Client credit card offers no pre-set spending limit. In addition to the no pre-set spending limit, the card also acts as a rewards card. Chase Private Client rewards cards users collect “points” as they use the card – the more that is charged, the more points earned. The points can add up fast, with extra points earned from goods and services that are often times associated with High Net Worth clients. The list includes Airlines tickets, high end hotel stays, cruise tickets, etc., all offering 2x to 3x the usual accumulation of points per dollar spent.


Chase Private Client – Full Service for No Additional Costs


Chase Private Client account holders will have full access to unlimited checking, free checks, and unlimited domestic incoming and outgoing Fed Funds wires on all Chase Private Client accounts. Setting up the wire service is easy, and is best done by going to the nearest office and having a Private Banker filling out all forms and paperwork. It is best to have a Private Banker set up the initial wiring paperwork, as the forms tend to be tricky and in no way intuitive. Once the initial paperwork is set up, and the first wire is completed and confirmed, any additional wires made to or from this Fed Funds address are easily arranged with a phone call to a Private Banker.


Chase Private Client Managed Brokerage Account


The core of the Chase Private Client account is the asset management function of the account. While the Chase Private Client account offers cash access with debit, checking and credit cards, the client will be advised to place the bulk of the funds in the account into a version of Chase’s managed money program. This means that while the client will have full access to the cash portion of the account, the securities portion of the account will be placed in a discretionary account that will be fully managed by Chase.

In the typical brokerage account, the client initiates all buy and sell orders of all securities into and out of the account. The brokerage account holder may ask for advice from the broker servicing the account, but for the most part the ultimate decision of what securities to buy and sell and how much of each is to be determined by the account holder.

Things are different with the Advisory role of the Chase Private Client account. With the Advisory arrangement, the money is placed in an account and managed by financial professionals. These Chase finance professionals structure and maintain the content of the client’s investment portfolio to meet the risk/reward profile of the client.

The risk/reward profile of the client is carefully determined at the beginning and throughout the client banking relationship. This profile is found out by the consultative process of the Private Banker including a careful question and answer process.


Chase Private Client Fees


Chase Private Client is essentially a wrap account. This means clients will be charged a flat rate for the total household assets under management. All funds in the household will be included, Checking, Credit, Taxable, and IRA’s. The flat rate for the account is 1.25% of assets yearly, but billed quarterly. This is expensive but is in-line with UBS, Morgan Stanley, and Merrill Lynch for similar services. When compared to the price of mutual funds that might be purchased independently by the account holder, the fees are very high: while some Class – A, B or C mutual funds can have management fees of upwards of 2.25%-2.5% per year, most mutual funds purchased through a brokerage firms such as TD Ameritrade or will have fees of around 0.10%-1.00% per year.


Is Chase Private Client Worth It?


Overall Chase Private Client offers house holding of checking, credit, and brokerage accounts to High Net Worth account holders, with a specialty of Managed Money Accounts. Fees in this type of account are always high, but the account comes with extra benefits such as free wires and no pre-set spending limit credit cards.





Top Brokers Offering Investment Advice


Several popular brokerage firms offer resources for both do-it-yourself traders and investors who need a little more assistance. In particular, investment advice can be obtained at Fidelity, TD Ameritrade, Schwab, Vanguard, and E*Trade. While there's usually a charge for this service, it may be of value to some people.


Fidelity Investment Advice


Investors at Fidelity can invest on their own or reach out for some assistance. The firm has 180 brick-and-mortar locations across 39 states. Financial advice can be obtained at one of these offices or over the phone 24 hours a day, 7 days a week. Fidelity offers some investment advice for free. Calling the broker with specific concerns and questions is a good place to start.

Managed accounts are also available with the company. A simple computerized management service called Fidelity Go costs just 0.35% annually. A minimum balance of $5,000 is required to begin the service. Human advisors who invest in stocks and mutual funds cost a little more (0.55%–1.50%) and require a deposit of at least $200,000.

Learn more in Fidelity Investments review »


Vanguard Investment Advice


Vanguard Personal Advisor Services is the name of the broker's investment advisory business. The firm offers assistance with educational planning, retirement assistance, and on-going investment advice. An individualized financial plan is also available. The investment advisory service costs only 30 basis points, but requires a steep $50,000 account minimum. There are no Vanguard brick-and-mortar locations, which may be a deal killer for some investors who want in-person financial advice.

Learn more in Vanguard review »


Charles Schwab Investment Advice


A computerized account management service called Intelligent Portfolios is available at Schwab. Curiously, the service is free. The broker claims it can do this by making money from the Schwab and non-Schwab ETF's that the service trades, from free cash balances (which make up a large 6-30% of the account's value), and from order routing. Seasoned investors will recognize those variables as red flags; although if the 0% management fee is worth it to you, you could give it a try. The broker does have human advisors that offer financial planning and account management, starting at just 0.90% per year.

Learn more in Charles Schwab review »


E*Trade Investment Advice


Financial consultants at E*Trade can be reached by calling 1-866-484-3658. The broker does not charge for the service. E*Trade claims to be objective in its advice because it doesn't offer proprietary funds. A robo management service costs just 0.30% per annum.

Learn more in E*Trade review »


Stock Brokers Investment Advice Summary


Financial planning and a spectrum of portfolio management services can be obtained at America's widely-used discount brokers. If you do decide to hand over your assets to an investment advisor, be sure you know what the exact fee schedule will be and what services you'll be getting in return. Also be sure you know how the company will handle any potential conflicts of interest.





Chase Bank


Chase Bank—through its parent company, J.P. Morgan Chase—is a powerhouse in U.S. banking. It is considered one of the Big Four banks along with Bank of America, Citigroup, and Wells Fargo. As with all federally chartered U.S. banks, Chase Bank deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account.

The chance of Chase Bank failing and going into bankruptcy is extremely low, so customers are unlikely to be putting their money at risk with Chase unless account balances far exceed the $250,000 limit of FDIC insurance.

Chase Private Client is a premium service offered by J.P. Morgan Chase, and all the federal banking rules and regulations apply. Therefore, the banking side of Chase Private Client appears to be safe from a risk of loss of principal.


J.P. Morgan Securities LLC


J.P. Morgan Securities LLC is the investment company that serves Chase Private Clients. J.P. Morgan is a member of the Securities Investors Protection Corporation (SIPC) and the Financial Industry Regulatory Authority, Inc. (FINRA).

SIPC insures investment accounts up to $500,000 (of which $250,000 may be in cash), so customers are protected for those amounts as far as retaining the current value of their securities. However, principal is not guaranteed so the risk is present for financial loss due to market volatility.

FINRA is a voluntary organization that works to ensure its members do business with clients in an ethical manner and with proper fiduciary responsibility. This doesn't mean unethical individuals won't try to deceive customers about potential returns, commissions, risks, or investment suitability, but membership in FINRA adds extra assurance that J.P. Morgan Securities works to conduct business in a legitimate manner.


Is Chase Private Client a Scam?


Chase Private Client is a legitimate business that offers investors premium-level concierge style banking, investing, and financial planning services and advice. The service has a strong pedigree through its parent company, J.P. Morgan Chase, and it is governed by the appropriate regulatory agencies.


Chase Private Client Complaints and BBB Rating


With that said, the Chase Private Client Better Business Bureau (BBB) has received customer complaints. In the past 3 years, 1659 complaints have been closed with J.P. Morgan Chase through the BBB. Here's the breakdown:

Advertising/Sales Issues - 71
Billing/Collection Issues - 480
Delivery Issues - 32
Problems with Product/Service - 1068
Guarantee/Warranty issues - 8

Out of 31 customer reviews submitted to the BBB on Chase Private Client account, one was positive, one was neutral, and 29 were negative. However, the positive review was, in fact, a negative complaint. Most of these Chase Private Client complaints seem to come from average customers dealing with bank tellers or customer service representatives on the telephone. These complaints don't necessarily reflect on Chase Private Client products or services.


About Chase Private Client


Chase Private Client (CPC) is a premium banking and investing program sponsored by J.P. Morgan Chase & Co., one of the largest financial institutions in the United States. CPC combines high-end, concierge banking services from Chase Bank along with personalized financial planning and investing advice and services from J.P. Morgan.

The program is only open to clients who maintain an average daily balance of at least $250,000 in any combination of qualifying linked deposits and investments. Risk-averse customers can confine their investments to bank products such as savings accounts and Certificates of Deposit. If so, Chase Private Client is safe up to the limits of federal insurance guarantees for deposit accounts, since no investment risk is taken.

Customers who wish to invest in securities other than insured bank deposits will be less safe since no investments such as stocks, bonds, mutual funds, Exchange Traded Funds (ETFs), or options are guaranteed against loss of principal.

To judge the safety of Chase Private Client, both Chase Bank and J.P. Morgan will be evaluated separately and those conclusions combined in order to form a complete opinion. Let's look at Chase Bank first.


Conclusion


Chase Private Client is a safe and legitimate business. Due to its association with J.P. Morgan Chase, it may actually be a degree safer than smaller companies with less financial backing.


Updated on 3/20/2018.