One thing I’ve learned throughout my life is that the rich get richer. The reason behind that is because oftentimes, they are financially educated, and know how to keep their money working for them. Not many people have an extra $250,000 in cash laying around. But say you did, and there were certain benefits you wanted that you would no longer have to pay for by just parking that money at Chase, wouldn’t you do it?
If you said yes, you’ll want to make sure you’ll maintain that money if you became a Chase Private Client, as they are making a few changes that could impact you.
Chase requires a minimum of $250,000 when becoming a Chase Private Client member. However, if you have less than $150,000 in the account, you will now be charged a fee of $35. There are some additional terms to go along with this change.
- The first 3 months of being a Chase Private Client member will not charge you the $35 fee if you dip below the $150,000 threshold.
- Existing CPC members will not be charged this fee until after February 26, 2021.
- Business balances will not count towards the $150,000 requirement.
- If you have a Chase Platinum Business Checking account, the $35 fee will be waived
Man oh man what a problem to have, having this kind of money would be nice in the first place! But seriously though, it’s strange to me that they are even instituting this change at all. I always figured that when you dipped below the $250,000 threshold, you may want to bring that amount up as soon as possible. Having a $100,000 difference before getting charged a fee doesn’t seem that unfair to me.
The bigger issue here isn’t really the $35 fee, but rather to keep in mind is that the daily requirement for being a Chase Private Client is still $250,000. So if you are below that threshold, technically Chase could end that relationship. However, if you have that kind of money, it would be in your best interest to invest it, not having sitting around in the bank account. So from that point of view, it would be unfortunate if Chase would end the relationship if the $250,000 was invested, only for the market to drop 30% like it did in March. I don’t think they would, but it’s technically possible.
What do you think about this change to the Chase Private Client program? Would you rather see a fee or account closures? Let us know down in the comment section below!