JPMorgan Chase Introduces Callable Step-Up Fixed Rate Notes Due 2039 with Interest Rates Rising to 7.75%

Interest Rate Structure and Note Details

The notes feature a three-step interest rate schedule over their lifespan. From the original issue date on August 11, 2026, through August 11, 2033, the notes pay 5.50% annually. The rate steps up to 6.25% from August 11, 2033, to August 11, 2036, and finally to 7.75% from August 11, 2036, until maturity on August 11, 2039.

Interest is paid annually in arrears on August 11 each year, beginning August 11, 2027. The notes are designed for investors seeking fixed income with increasing rates but who accept the possibility of early redemption. JPMorgan Chase cautions that investors should not anticipate receiving the highest 7.75% rate because the notes are likely to be called before maturity if interest rates remain flat or decline. The interest accrual uses an unadjusted 30/360 day count convention.

Call Feature and Redemption Terms

A key feature is the issuer’s call option. Starting August 11, 2028, and on every February 11 and August 11 thereafter through February 11, 2039, JPMorgan Chase may redeem the notes in full but not partially. Upon redemption, investors receive the principal plus any accrued unpaid interest. Early calls expose investors to reinvestment risk if prevailing rates have decreased.

JPMorgan Chase must notify The Depository Trust Company at least five business days before any redemption date. Redemption dates follow a next business day convention if they fall on non-business days. The call feature is significant for investors considering the step-up rates; unless interest rates rise substantially, notes are expected to be called early if rates remain stable or decline.

Unsecured Nature and Credit Risk

The notes are unsecured, unsubordinated obligations of JPMorgan Chase & Co., lacking specific collateral backing. Payment depends on the issuer’s creditworthiness. These notes are not bank deposits and are not insured by the FDIC or any government agency, nor guaranteed by any bank entity.

Capital preservation depends on JPMorgan Chase’s ability to meet its obligations. Investors have no priority over other unsecured creditors. Credit risk is a primary consideration alongside the interest rate and call features.

Pricing and Commission Structure

The preliminary pricing supplement indicates pricing and fees are subject to finalization. The initial price to public is expected to be $1,000 per $1,000 principal amount, inclusive of hedging costs through affiliates.

For eligible institutional investors or fee-based advisory accounts, the price will range between $967.60 and $1,000 per $1,000 principal. J.P. Morgan Securities LLC acts as agent, distributing selling commissions estimated at $15.00 per $1,000 principal amount, capped at $30.00. Broker-dealers selling to eligible investors may waive some or all commissions.

Investment Minimums and Denominations

The notes are offered in minimum denominations of $1,000 and integral multiples thereafter, allowing accessibility for individual and institutional investors. The offering size remains unspecified and subject to completion.

The original issue and settlement date is August 11, 2026, with a pricing date of August 7, 2026, both subject to business day conventions. The notes carry CUSIP 48130KWZ6 and are part of JPMorgan Chase’s Series E medium-term notes program under Registration Statement No. 333-293684.

Risks and Maturity Considerations

The notes’ 13-year maturity exposes investors to extended interest rate, inflation, and credit risks. The filing highlights that longer maturities carry greater risk compared to shorter-term debt. Investors should consult the prospectus supplement and product supplement for detailed risk disclosures.

The callable feature introduces reinvestment risk, as the step-up rates may never be fully realized if the notes are redeemed early due to stable or declining interest rates. Investors are urged to seek advice from financial, legal, tax, and accounting professionals before investing.

Regulatory Filings and Documentation

This preliminary pricing supplement dated July 23, 2026, supplements the prospectus and product supplements dated April 17, 2026. The offering remains subject to completion, with some terms pending finalization. Investors should review all documents for comprehensive terms.

The supplement supersedes prior communications including oral statements, preliminary pricing, and marketing materials. JPMorgan Chase reserves the right to modify terms or reject purchase offers before issuance, notifying investors of material changes and allowing acceptance or rejection.

Investor Insights on Step-Up and Call Risks

The step-up structure offers potential for increasing income if held to maturity, with the highest 7.75% rate payable only in the final three years. However, the call feature means investors likely will not receive this rate unless interest rates rise significantly. The notes suit investors with specific yield curve views willing to accept call risk for higher initial yields compared to straight bonds.

Investors bullish on rising rates should note the call option limits the issuer’s obligation, potentially curtailing upside if rates increase materially.

Program Background and Registration

These notes form part of JPMorgan Chase & Co.'s ongoing medium-term notes program under Registration Statement No. 333-293684. The base prospectus, prospectus supplement, and product supplement dated April 17, 2026, provide the governing disclosure framework.

Copies of offering documents are available on the SEC’s EDGAR database under JPMorgan Chase’s Central Index Key 19617. Final pricing and terms remain subject to market conditions and investor demand at pricing.