J P Morgan £100 offer

Belenus

We are a 74 year old retired couple. Mortgage and debt free with good pensions and plenty
of savings. Our savings are mostly invested in Premium Bonds, CHIP and Trading 212 cash ISAs. We do a lot of credit card stoozing and occasionally switch bank account for free money deals etc, guided by MSE advice. We are not looking for any risky or adventurous investments. Safe and steady suits us fine.

Is the J P Morgan £100 offer a good deal and what pitfalls might not be obvious. Are there better alternatives for £1,000 or more each.

Comments and advice welcome please.

Details of J P Morgan offer.

Now that you’ve registered for the £100 offer, you’re one step closer to collecting cash to invest or withdraw. To qualify, follow these steps:

Create your account

If you haven’t yet done so, create your J.P. Morgan Personal Investing account using the
same email address you used to register for the offer.

Invest £1,000 or more

Choose from a Stocks and Shares ISA, Lifetime ISA, Junior ISA, Personal Pension, or
General Investment Account, and invest at least £1,000 in one payment using our app or your online dashboard.

Stay invested for six months

Your total ‘net’ contribution needs to stay at or above £1,000 for the full holding period. We’ll then pay the £100 cash into your account as unallocated cash within 55 days of the six-month period ending.

flaneurs_lobster

Not sure this needs it's own thread - there's the-cashback-for-bank-or-investment-accounts-discussion-thread already.

But maybe the first thing to think about is - what do Chase have available that you might want to invest in for up to 8 months?

Or are you intending on continuing the investment beyond the bonus payout?

friolento

This is not a good offer. Unless you have already exhausted all the many better ones in the above mentioned thread, I wouldn't touch it - - and even then, I am not sure I would invest on the JP Morgan platform as last time I looked at it, they not only had a very limited portfolio but they also only traded on certain days of the week.

poblomov

https://forums.moneysavingexpert.com/discussion/6688201/j-p-morgan-100-offer

At an effective rate of 10% cashback and only needing to stay invested for 6 months, I think it is one of the better ones.

I gamed the application a bit to make sure they offered me the lowest risk ready-made portfolio. I opened my account in May. The offer at that time requires me to stay invested until May 2027. I doubt I'll keep the investment once the cashback is paid.

Gilts prices had already dropped due to the Iran war so the lowest risk portfolio seemed pretty safe to me when I invested. Current value £1,020.75.

Not sure if there were similar offers when it was Nutmeg that means others might have experience of getting the cashback and closing the account that they can share.

flaneurs_lobster

Not sure if there were similar offers when it was Nutmeg that means others might have experience of getting the cashback and closing the account that they can share.

There were and I did.

The fact that I can remember almost nothing about it probably means that there were no particular issues.

friolento

At an effective rate of 10% cashback

it’s only an effective rate of 10% if you keep your £1,000 in there for 12 months, if your mandatory investment doesn’t tank, and if you don’t inadvertently stumble over any offer terms. I would probably risk it if I had exhausted more lucrative offers, and if I hadn’t had a similar Chase investment offer before

Aretnap

and even then, I am not sure I would invest on the JP Morgan platform as last time I looked at it, they not only had a very limited portfolio

That's actually a good thing for someone who is new to investing, who is investing primarily for the cashback, and and doesn't want to be overwhelmed by the choice of thousands of possible investments.

but they also only traded on certain days of the week.

Not sure why that would be an issue for an investment that you plan to hold for 6 months - what difference does it make if you end up holding it for 6 months and a couple of days?

Contrary to what friolento thinks, a 10% return over 6 (not 12) months, on top of investment performance, is a good offer by any objective measure. It vastly exceeds the interest rate on any savings account, for example. Other offers are also available, but there's no reason not to take advantage of them too.

You do of course have to be comfortable with the fact that your money will be invested, not saved, so there is a risk that it's value will fall. If that worries you, consider the lowest risk portfolio that they offer, which contains around 20% shares and 80% bonds. Such a fund CAN fall in value, but not by anything like as much as a fund that invests purely in shares.

By way of illustration, similar funds that contained 80% bonds fell by around 15% in 2022, which was the biggest bond market crash in decades. That was the result of some fairly unique circumstances (interest rates rising rapidly after years at nearly 0%) and is unlikely to be repeated any time soon - but you can probably think of it as something close to the worst case scenario. So in the worst case you'd be looking at losing about £50 from your £1000, once you've factored in the cashback.

The "baseline" or "expected" scenario however would be more like no change in prices and a return along the lines of current bond yields (ie interest rates) - so around a 2% gain over 6 months, plus the 10% cashback. The best case scenario would involve bond prices going up somewhat, and would be a bit better than that.

Ultimately of course it's up to you whether you're comfortable dipping your toe into the world of investments to collect the £100 offer, but it's certainly one that I have enthusiastically taken advantage of.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82182268#Comment_82182268

If you only need to stay invested for six months to receive the £100 cashback it's really good. I took up a similar offer earlier in the year and chose the 3/5 balanced investment option which is about 65/35 equities and bonds. I'd be investing the money in the markets anyway so it's not really a meaningful risk. It's more just the hassle of keeping an eye on yet another account…

Recently JPM stated that self directed investments will be coming soon, so the offering should improve.

specialized67

There’s also £75 for opening up via TopCashback so £175 suddenly becomes pretty good for the ease of set-up I found and more likely to outweigh any minor losses.

friolento

https://forums.moneysavingexpert.com/discussion/comment/82182551#Comment_82182551

be very careful, the TCB offer is very different (e.g. £5k initial investment) and importantly is not meant to work with any other JPM offer