- Key insights: Changes will impact under 5% of customers in JPMorgan Chase’s growing business banking sector.
- Support data: The bank’s corporate bank deposits surged by 72% from 2019 to 2024.
- What’s going wrong: This fee adjustment is part of the bank’s effort to boost its share among affluent and small business clients.
JPMorgan Chase is set to increase fees on one of its small business deposit options for the first time in over eight years.
The largest bank in America will raise monthly service fees and transaction fees for the Chase Performance Business Checking accounts by 33% and 25%, respectively, effective January 1. This alteration will also impact related interest accounts, along with an increase in monthly cash deposit fees.
However, the fee will be waived for accounts maintaining an average daily starting balance of at least $35,000.
This change is expected to affect less than 5% of business customers, according to a representative from JPMorgan Chase.
A spokesperson emphasized in an email, “Our business customers benefit from our robust product offerings, cutting-edge digital tools, an expansive branch network, and friendly service from our bankers.” They added, “We routinely assess our services to ensure we are providing solid value to our clients.”
During the company’s investor briefing in May, Marianne Lake, the CEO of Consumer and Community Banking at JPMorgan Chase, mentioned that the firm is currently “below its own capabilities” in serving small and medium-sized enterprises.
Lake noted, “We’re focused on expanding our Premium and Small Business segments, both of which are experiencing double-digit growth.”
From 2019 to 2024, the bank’s corporate deposits grew from $136 billion to $234 billion, marking a 72% increase.
Business banking, a segment of JPMorgan Chase’s consumer and community banking efforts, accounted for about 42% of its total revenue in 2024. Yet, from 2023 to 2024, net interest income from consumer deposits declined by $3.7 billion due to drops in both balances and margins.
Beginning next year, the monthly fee for the Chase Performance Business checking account will rise from $30 to $40. This account allows for up to 250 transactions per month, and fees for exceeding this limit will climb from 40 cents to 50 cents each.
Additionally, cash deposits can go up to $20,000 monthly, but fees for amounts beyond that will increase from $2.50 to $3.00 per $1,000.
Chase has also adjusted fees in other areas. Earlier this year, they raised the annual fee for their popular Sapphire Reserve credit card from $550 to $795, with the initial fee set at $450 when the card launched in 2016.
