JPMorgan Chase to offer 6% interest rate for minimum of $5 million in high-end CD product: WSJ
Those wealthy enough to park $5 million in a certificate of deposit for six months will earn a lofty 6% interest rate at JPMorgan Chase & Co., The Wall Street Journal reported Thursday in an exclusive story.
There’s an important catch with the certificate of deposit, which has been a popular product with banks from people looking to cash in on higher interest rates than available on traditional savings accounts.
To qualify for the 6% CD, money must come from outside JPMorgan Chase
JPM,
in a bid to draw in fresh capital into the bank, the WSJ report said. The CD’s maximum deposit level is $100 million, with the offering ending on Saturday.
Also read: JPMorgan Chase names new investment-bank boss and sets up digital bank in flurry of personnel moves
Adam Stockton, managing director at bank data provider Curinos, told the newspaper that banks have been typically offering interest rates of about 2.5% to draw in regular customer deposits, but have been offering 4% to 5% for new wealth-management deposits.
For its part, JPMorgan Chase has been offering 5% to retail banking customers with a minimum of $100,000, while customers who put in less than $100,000 earn 4%. Meanwhile, the bank only pays 0.1% interest for interest-bearing checking and savings accounts, the WSJ said.
Also read: Jamie Dimon on interest rates: ‘I am not sure the world is prepared for 7%’
Read the full article here