Goals-based planning
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Cash: How much do you really need on hand?
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Last year’s shocks to the global banking system pushed many to become more discerning when selecting a bank, and for good reason.
When considering financial institutions, the rate of interest you’ll earn on your money can be a driving motivation in where you deposit your assets, but it is only part of the equation. The product offerings, branch network and digital platform should suit your needs & lifestyle—but it is also wise to consider the quality of the firm’s advice and services, its commitment to cybersecurity and the strength of its balance sheet.
Here are a few questions to ask yourself when evaluating the long-term security of your assets and deciding where to entrust your wealth.
As online banking, investing and payment systems become more embedded in our financial lives, cyber criminals are finding equally sophisticated ways to exploit the global banking system.
To protect client assets and information as well as their own operations, financial institutions should be investing heavily in computer systems that monitor money movement transactions for fraud, as well as in software, networks, storage devices and other technology assets.
These might include:
Basel III, an international regulatory accord, introduced a set of reforms to mitigate risk within the global banking sector in the wake of the Great Recession (2008). These tighter regulatory controls and capital requirements require banks to maintain certain leverage ratios.
While there is enormous complexity to these efforts, three closely watched indicators can help you monitor the fiscal health of your financial institution:
The safety and security of our clients’ assets are our top priorities. Your J.P. Morgan team can answer any questions you may have about how we protect your accounts. You can also learn more here.
Once you size out the appropriate amount of cash needed for your liquidity needs, it’s important to keep in mind other protections beyond what your financial institution provides. Following market volatility, many people have questions about the extent of federal government protections for deposit accounts.
U.S. deposit accounts are protected by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per each depositor account if it is held at an insured bank. Keep in mind:
If your accounts hold more than the standard insured amount, it is the stability/capitalization of the institution where you bank that protects your deposits beyond the FDIC-insured amount.
For more information on our cyber and fraud protections, please contact your J.P. Morgan team to schedule a session with our cybersecurity or fraud prevention specialists on how to secure your technology and your financial accounts.
Additional information:
Our Financial Strength2
1FDIC insurance is limited to these types of accounts: negotiable order of withdrawal (NOW) accounts, savings accounts, money market deposit accounts (MMDAs), time deposits such as certificates of deposit (CDs), cashier's checks, money orders, and other official items issued by a bank. Deposits not covered by the FDIC include securities, mutual funds and similar types of investments, Treasury securities (bills, notes and bonds), and safety deposit boxes or their contents.
2As of March 31, 2024, unless otherwise indicated.
3Represents estimated common equity Tier 1 (“CETl”) capital and ratio under the Basel lll Fully Phased-In capital rules to which the firm will be subject as of March 31, 2024. Common equity Tier 1 (“CETl”) capital, Tier 1 capital, Total capital, risk-weighted assets (“RWA”) and the CETl, Tier 1 capital and total capital ratios and the supplementary leverage ratio (“SLR”) under the Basel lll Fully Phased-In capital rules, to which the firm will be subject commencing March 31, 2024, are considered key regulatory capital measures. These measures are used by management, bank regulators, investors and analysts to assess and monitor the firm’s capital position. For additional information on these measures, see Capital Risk Management on pages 86-96 of the firm’s Annual Report on Form 10-K for the year ended December 31, 2023.
4Long-term issuer rating for JPMorgan Chase Bank, N.A.
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JPMorgan Chase Bank, N.A. and its affiliates (collectively "JPMCB") offer investment products, which may include bank-managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC ("JPMS"), a member of FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.
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