June 19, 2019

Chase You Invest Review

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Chase You Invest App has a bonus promotion, low fees and mutual funds trading. But is it good for beginners? Read this review for the pros and cons.

What Is You Invest

You Invest is a low-cost, primarily app-based investment tool. It allows you to manage your investments by researching and trading online.

Chase introduced the feature on its mobile banking app in August of 2018 to compete with low-cost investment platforms like Robinhood and M1 Finance.

The platform has a Portfolio Builder feature that helps you strategize your investment mix. You can invest in the following:

  • Stocks
  • Bonds
  • Mutual funds
  • Exchange-traded funds (ETFs)

If this sounds to you, you can get started with Chase You Invest here.

You aren't able to invest in futures, options, or foreign exchange trading investments through You Invest.

Chase You Invest Promotion

    Chase

    You Invest℠ by J.P. Morgan

    • Enjoy up to $625 when you open and fund a new You Invest Trade account with $25,000 or more in new money. Find out how.
    • Get 100+ commission free online stock and ETF trades when you open a new account. Fees and restrictions may apply.
    • You Invest is an easy, smart and low-cost way to invest online.
    • Choose an account that's right for you: Brokerage, Traditional IRA or Roth IRA
    • Easily manage your Chase banking and J.P. Morgan investments all in one place.
    • Get tools and expertise to make smarter investment decisions.
    • Enjoy industry-low pricing, leaving you more money to invest.

    INVESTMENT PRODUCTS: NOT A DEPOSITNOT FDIC INSUREDNO BANK GUARANTEEMAY LOSE VALUE

Pros

  • Robust education materials for new investors.
  • Portfolio monitoring
  • Morningstar ratings visible on funds
  • Free app download
  • Up to 100 commission-free stock and ETF trades when you open an account
  • New account bonuses
  • Searchability based on parameters you set around risk and asset classes
  • No commission fees or transaction fees on mutual funds

Is You Invest Safe?
Here are some of the safety features of You Invest:

  • SIPC
    You Invest is insured by the SIPC. They protect against the loss of cash and securities held by a customer at a financially troubled SIPC-member brokerage firm. The coverage is limited to $500,000.

  • FINRA
    J.P. Morgan is also a member of the FINRA (Financial Industry Regulatory Authority). The FINRA ensures that the broker-dealer industry is regulated and operates fairly.

  • Financial Health
    J.P. Morgan has over $1 trillion in assets under management, so they're not likely to run into financial trouble anytime soon.

What Are the Cons?

You Invest isn't ideal for all situations—keep reading to learn about the downsides.

  • Active Trading is Expensive
    After your commission-free trades end, you'll pay for every trade UNLESS you're in the premier pricing or relationship pricing customer group (more on these below).

  • Limited Investment Options
    If you want to invest in futures, options, or forex trading, this platform isn't a great option.

    For futures, options or forex trading, check out Ally Invest. Read our full review here.

  • Mobile Design is Lacking
    The app for You Invest is not as robust as Robinhood or Betterment.

Managed Portfolios
Chase has a "set it and forget it" option. Your portfolio is managed and rebalanced as the market fluctuates.

You'll start by answering some basic questions regarding your risk tolerance, investment goals, and your time horizon for investing. Then, You Invest will recommend a portfolio for you.

Each portfolio offering is diversified using a mix of ETFs. A global investment team manages the portfolios, giving you peace of mind with investing.

  • Minimum Balance for Portfolio Builder
    You need a minimum of $2,500 in your account.

Costs

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You Invest is available on the free Chase mobile banking app. When you open an account, you'll receive 100 commission-free online stock/ETF trades to use within one year. (You may get additional commission-free trades depending on your standing with Chase.)

After you've used your free trades, or once they've expired, you'll incur fees on additional trades. Plus, other transaction types carry costs. Keep reading to learn more.

Customer Tiers

There are three tiers that determine the number and frequency of your commission-free trades. Keep reading to learn which one you'll fall into.

Standard Pricing
This tier is available to everyone and comes with the 100 commission-free trades. But fees apply after the first year depending on how many trades you perform. Read on to learn about the fees per trade.

Relationship Pricing
This tier is reserved for Chase Premier Plus customers. At this level, you'll receive 100 commission-free trades every year that your account is active.

Premier Pricing
These customers will receive an unlimited number of commission-free online stock and ETF trades.

Premier pricing is reserved for the following clients:

(Compare Plans)

Fees

Per Trade Fees
Each trade is $2.95. You'll have one year to use your 100 commission-free trades. If you're not part of the Premier or Relationship pricing models, you're charged for each trade.

Mutual Funds
Mutual fund purchases are free in You Invest.

Bonds/Fixed Income
To purchase a bond, you'll pay $1 per bond. There is a $10 minimum and a maximum of $250.

You can use a representative to assist you during trades. But their assistance comes at a much higher cost, at least $20 per trade. That cost also applies to mutual funds.

Miscellaneous Fees
Aside from trading, you'll incur fees for the following:

  • Brokerage account transfers: $75 (when any securities are transferred out of the account)

  • Retirement brokerage account termination: $75 (when all assets are distributed or transferred out)

  • Wire transfer: $30 per wire (only for external wires)

  • Overnight/express mail: $10 per item

  • Stop payments: $34 per item

  • Check returns: $12 per check

  • Prepayment advance before trade settles: margin interest

  • Late payment/cash due interest: JPMS Base lending rate + 2.5%

  • Alternative Investment Fees (limited partnerships, private equity funds, hedge funds, REITs): $250 per investment per year—does not apply to Managed Accounts

  • Legal transfers: $25 per certificate—does not apply to Managed Accounts

  • Safekeeping: $4 per position—does not apply to Managed Accounts

  • Foreign security surcharge: Charged as incurred from agent banks—does not apply to Managed Accounts

  • Foreign security transfer: Charged as incurred from agent banks—does not apply to Managed Accounts

Type of Accounts

You can open several different types of accounts using You Invest. Keep reading to learn about each of the options.

Roth IRA
This individual retirement account is meant to build retirement savings, which can then be withdrawn after you reach 59½. Money going into a Roth IRA has already been taxed. The investment gains and withdrawals are tax-free.

If you're under 50, you can contribute $6,000 per year. Once you reach 50, you can contribute $7,000. Single filers must have an income of less than $137,000 to contribute. For married couples, the income limit is $203,000. There is no age limit.

Traditional IRA
A traditional IRA is funded using pre-tax dollars. That means traditional IRA contributions could lower your taxable income and lessen your tax liability within the year you contribute. But withdrawals from a traditional IRA are taxable and so are the investment earnings.

You can withdraw up to $10,000 from a traditional IRA before age 59½ for qualified higher education expenses or first-time homebuying expenses without incurring a penalty. Other distributions are allowed, such as hardship expense, but you'll pay tax on the amount you take out.

If you're under 50, you can contribute $6,000 per year. Once you reach 50, you can contribute $7,000.

At age 70½, you must begin taking distributions from your traditional IRA in order to avoid penalties.

Individual Brokerage Account
Brokerage accounts are simply investment accounts set up with a brokerage firm. Traditionally, you can select from stocks, bonds, mutual funds, index funds, exchange-traded funds, forex, CDs, bonds, and more. With You Invest, that list is more limited. Read on to learn more about that.

You can deposit as much money as you'd like into brokerage accounts, regardless of your income or age. But some accounts have minimum initial deposit requirements. You can begin withdrawing funds at any time from a brokerage account. Pus, you're not required to make distributions at any age.

Contributions into brokerage accounts are made with your after-tax dollars. There aren't any tax consequences for withdrawing money from the brokerage account. But there are transactions that can spark a tax liability. You can be taxed on:

  • Selling a Security: you're taxed on any gains
  • Dividend Payments: taxable to you, even if you reinvest
  • Interest Payment from Bonds: taxable in the year you receive them

Consult your tax professional to understand all the tax liabilities you'll incur with your investments.

Joint Brokerage Account
A joint brokerage account has the same rules as an individual brokerage account. The difference is that you share the account with another person. Here are the types you can open in You Invest:

  • Joint Tenants with Rights of Survivorship (JTWROS)
    With a JTWROS account, both people will have an equal interest in the account assets. When one owner dies, the other owner inherits all the assets. This type of account is not available in Louisiana.

  • Joint Tenants in Common (TIC)
    Each individual has equal interest in the assets in TIC accounts. When one owner dies, their beneficiary receives that share of the interest. The other individual continues owning their share.

  • Joint with Community Property (CP)
    CP accounts are meant for married couples. When one owner dies, that person's assets are inherited by their estate or beneficiary, depending on the applicable laws in their home state. This option is only available in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

Portfolio Builder

You Invest has a Portfolio Builder tool, available to investors with an account balance of at least $2,500. The Portfolio Builder will guide you in choosing investments that fit into your risk tolerance and investment goals.

Instead of focusing on individual investments, the Portfolio Builder lets you design a strategy for your entire portfolio. You'll see an analysis of the stocks and ETFs in your whole portfolio and how they fit within your risk tolerance and investment goals.

You won't be forced into any investments. But Portfolio Builder will warn you when you've selected an investment that doesn't fall within your goals.

This function is currently available only on computers or tablets right now, not through the app.

Opening an Account

Existing Chase customers have the option of opening a You Invest account through the Chase mobile app or their online banking account. For non-account holders, you can start the process by going to their website.

Account Opening Requirements:

  • At Least 18 Years Old
  • Social Security Number
  • State ID or driver's license
  • Capable of Answering These Questions:
    • Your income
    • Your current employment
    • Your investment goals
  • Account Type Needed (Roth IRA, Traditional IRA, or Brokerage Account)

Once you've opened an account, you may be entitled to an introductory cash bonus. Read on to learn if you qualify and how to get it.

New Account Bonus

    Chase

    You Invest℠ by J.P. Morgan

    • Enjoy up to $625 when you open and fund a new You Invest Trade account with $25,000 or more in new money. Find out how.
    • Get 100+ commission free online stock and ETF trades when you open a new account. Fees and restrictions may apply.
    • You Invest is an easy, smart and low-cost way to invest online.
    • Choose an account that's right for you: Brokerage, Traditional IRA or Roth IRA
    • Easily manage your Chase banking and J.P. Morgan investments all in one place.
    • Get tools and expertise to make smarter investment decisions.
    • Enjoy industry-low pricing, leaving you more money to invest.

    INVESTMENT PRODUCTS: NOT A DEPOSITNOT FDIC INSUREDNO BANK GUARANTEEMAY LOSE VALUE

Chase is offering bonuses for funding a You Invest account with new money. New money is defined as funds not transferred to You Invest from other Chase accounts or Chase affiliate accounts. Here are the tiers for the bonus:

  • Get $200 for accounts funded with $25,000–$99,999
  • Get $300 for accounts funded with $100,000–$249,000
  • Get $625 for accounts funded with $250,000 or more

These are the steps you will need to take in order to claim your bonus:

  1. Open a You Invest Trade account

  2. Fund the account with qualifying new money (not from other Chase accounts)

  3. On day 45, Chase will determine your incentive tier, meaning they will evaluate how much new money you've placed into the account

  4. Maintain the new funds in the account for 90 days from the date of funding

  5. Receive the bonus directly into your account within 10 business days

Customer Service

Chase's FAQ section offers the answers for most common questions. You can find How-To Guides, which can show you how to place a trade, contribute to your IRA, and more. There's also information about changing your personal information, like addresses, beneficiaries, paperless settings, and other account settings.

However, if you do need additional support, Chase is available by phone at 1-800-392-5749. They can be reached Monday through Friday from 8 AM to 9 PM and Saturday from 9 AM to 5 PM ET. Or, you can stop in at a local Chase branch to ask questions or get assistance on the You Invest platform.

Alternatives

Keep reading to learn about some alternatives you should consider when managing your investment portfolio.

Robinhood
Robinhood is commission-free and has no minimum balance requirements. It's best for novice investors. Here's what you should know:

  • No retirement account options—only individual taxable accounts
  • Minimal research options
  • Cryptocurrency trading options
  • No minimum balance requirements
  • No commission fee for stock trades

M1 Finance
M1 Finance bridges the gap between robo-investing services and DIY investing. It allows you to choose your own investment, and then the automated service manages your account. It's best for DIY investors, semi-experienced investors, and long-term investors. Here's why:

  • Build and customize your portfolio
  • M1 manages your portfolio for you
  • No trade, management, or account opening fees
  • $100 lets you start investing
  • Free to use
  • Rebalances your account with a simple click

    M1 Finance

    M1 Finance: Commission Free Stock Trading

    M1 Finance allows investors the choice of ETFs and stocks. M1 charges no management fees or commission.

TD Ameritrade
TD Ameritrade may be worth it for moderately experienced to experienced investors. Here's why:

  • Robust analytical and research features to truly understand your portfolio's performance

  • Analyze a current strategy using historical financial information

  • User-friendly platform with excellent customer service

  • No minimum deposit requirements

Betterment
Betterment is a robo-advisor with no account minimum and a low fee structure. It's a good option for people who have little money to invest. Here's what you should know:

  • Automatically invests in diversified portfolios of ETFs
  • Hands-off and passive investing, ideal for beginners
  • No account minimums
  • Automatically rebalances your portfolio every 3 months to align with your goals

Bottom Line

You Invest is a great option for those with investing experience. The low fees and free trades promotion during the first year can help new investors gain traction in the market without spending too much.

Plus, the support from J.P. Morgan's robust educational materials can help you develop the right investment strategy for your situation.

Disclaimer: Opinions expressed here are author's alone. Please support CreditDonkey on our mission to help you make savvy decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.

Disclaimer: This content was first published on June 19, 2019. Information including rates, fees, terms and benefits may vary, be out of date, or not applicable to you. Information is provided without warranty. Please check the bank's website for updated information.

TD Ameritrade has not influenced the content of CreditDonkey. CreditDonkey may earn compensation for accounts opened at TD Ameritrade.

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