Chase Private Client Review: Banking Service Minimum and Fees, Investing Advisor, Managed Brokerage Account


Chase Private Client Overview

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. The primary advantage to opening a CPC account is to receive full-service financial advice and service from a dedicated team individuals led by a Private Chase Banker for banking matters and a J.P. Morgan Private Client Advisor for investing and financial planning services. CPC customers will also have access to Chase's comprehensive suite of IRAs and brokerage accounts, checking accounts, credit cards, and lines of credit, with the added bonus of reduced or zero fees for many extra services.

Chase Private Client Concierge Banking Services Main Features

  • No Monthly Service Fee on CPC Checking or Savings accounts when linked to any CPC Checking account
  • No Chase fees for domestic and international wire transfers available in person, on the phone, or online
  • No Chase fee at a non-Chase ATM (including international ATMs). In addition, they will refund ATM fees charged by the ATM owners up to 5 times per statement period.
  • No fee for 3x5 Safe Deposit Box; 20% discount for larger boxes
  • No stop payment fees
  • No fees for cashier’s checks, counter checks or money orders
  • Chase Mobile App for anywhere, anytime online service
  • Higher Chase QuickDeposit and QuickPay limits for ease of moving large amounts of to or from CPC accounts

Chase Private Client Credit Card Services (Sapphire Preferred/ Sapphire Reserve)

  • No preset spending limit for either card
  • 60k/100k bonus points after spending $4,000 in first three months
  • Double/Triple points for travel and dining purchases
  • No foreign transaction fees
  • 25% or 50% more value when travel costs are booked through Chase Ultimate Rewards
  • Sapphire Reserve also offers access to 900+ airport lounges worldwide, transferability of points at full value to leading airline and hotel loyalty programs, no expiration on earned points, and direct access to a Customer Service Specialist anytime from anywhere in the world.

Chase Private Client Mortgage Benefits

  • CPC Mortgage Rate Purchase Program offers Chase's best rates on home mortgages
  • $750 discount on closing costs on all loans
  • Priority loan processing and senior underwriting support
  • Discounts for Home Equity Lines of Credit

J.P. Morgan Private Client Advisor Benefits

  • Customized Financial Analysis to outline an investing and saving strategy, set goals, and anticipate unexpected scenarios
  • Access to one of the leading global research firms in the country
  • Investment advisory services that tailor a portfolio to each individual
  • Diversification available with more than 1,000 mutual funds
  • College Planning
  • Securities-based lending
  • Annuities
  • Retirement planning

Chase Private Client Managed Brokerage Account

The core of the Chase Private Client account is the asset management function. 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 will be a discretionary account that will be fully managed by Chase.

With the Advisory role of the Chase Private Client account, the money is managed by financial professionals who structure and maintain the client’s investment portfolio to meet the risk/reward profile of the client.

This is in contrast to a typical brokerage account where 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.

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 billed quarterly. This is expensive but 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, many mutual funds purchased through a brokerage firms such as TD Ameritrade or Scottrade will have fees of around 0.10%-1.00% per year. This difference in fees on a $250,000 account can add up to thousands of dollars per year.

Prospective customers of CPC must calculate the value of the benefits and services they may receive and offset that with the extra costs of the wrap fee. If a customer utilizes services such as a free safe deposit box, free wire transfers, benefits from credit card reward points and no foreign transaction fees, and perhaps gets a lower home mortgage rate than without CPC, the 1.25% annual wrap fee may be worth it. However, paying an extra 1.25% solely for investment management may end up costing even more in lost growth from mediocre returns over the long term.

Value must also be assessed for financial planning services and integration of total household assets under one management umbrella. Typically, fee-based financial plans commonly start at $500 and may go into the thousands depending on the complexity of one’s finances. Commission-based financial planners often steer clients into investments that generate high commissions for the advisor but don’t necessarily outperform market indexes or benchmarks.

Convenience and simplified record keeping should also be considered when deciding on an asset management strategy. Faster service by a dedicated team of advisors and customer service representatives is another deciding factor. Individuals are more likely to get better, faster service and advice from a company with which they have an exclusive, long-term relationship.

Other Considerations

Chase Private Client may sound good on paper, but delivering on promised benefits isn’t always a sure thing. Anecdotally, Chase does not offer competitive mortgage rates when compared to the lowest available rates from online or other mortgage sources. Chase may only offer discounts from their regular rates, which may or may not be among the lowest.

Also, CPC investments are limited in that they don’t include options trading, which may be important for some investors. And many of the banking perks such as no ATM fees, free safe deposit boxes, free money orders, cashier’s checks, and wire transfers may be obtained with the Chase Premier Platinum Checking account, which requires only a $75,000 balance. Individuals who do not want or need asset management or credit card benefits may be better off going this route and saving the annual wrap fee incurred with Chase Private Client.

Chase Private Client Review Conclusion

Asset management is not easy and there is no such thing as a one-size-fits-all solution. Each individual must assess their own situation and determine what is best for them. Chase Private Client offers valuable services, discounts, and perks. It is competitive in the field of full-service asset management, but that comes at a price that some neither want nor need.

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Chase Private Client reviewed by TopRatedFirms.com. Rating: 3