JPMorgan Chase Launches Callable Step-Up Fixed Rate Notes Due 2039 With Rates Rising to 7.75% Annually

Structure and Interest Rate Schedule of the New Notes

The notes issued by JPMorgan Chase feature a three-tiered interest rate structure that increases over the life of the security. During the initial seven-year period from the Original Issue Date of August 11, 2026, through August 11, 2033, the notes will pay interest at 5.50% per annum. From August 11, 2033, through August 11, 2036, the rate steps up to 6.25% per annum. Finally, from August 11, 2036, through the maturity date of August 11, 2039, the rate rises to 7.75% per annum.

Interest payments are made annually in arrears on August 11 of each year, beginning August 11, 2027. The disclosure states that the notes are designed for investors who seek fixed income with a rising interest rate structure but are willing to accept the risk of early redemption. The issuer explicitly cautions that investors should not expect to earn the highest scheduled interest rate of 7.75% annually because the notes are likely to be called prior to maturity if interest rates remain flat or decline during the term. The interest accrual convention is unadjusted, and the day count convention is 30/360.

Call Feature and Redemption Dates

A significant feature of these notes is the embedded call option held by JPMorgan Chase. Beginning August 11, 2028, and continuing on the 11th calendar day of February and August each year through February 11, 2039, the issuer may redeem the notes in whole but not in part. On any redemption date, JPMorgan Chase would pay investors the principal amount plus any accrued and unpaid interest. This means that if the issuer exercises the call, investors will receive their capital back sooner than the stated maturity date, creating reinvestment risk if prevailing interest rates have declined.

The disclosure specifies that if JPMorgan Chase intends to redeem the notes, it will deliver notice to The Depository Trust Company on any business day after the Original Issue Date that is at least 5 business days before the applicable Redemption Date. The terms follow a following business day convention for dates that fall on non-business days. This redemption feature is particularly relevant to investors considering the step-up structure; the filing notes that unless general interest rates rise significantly, investors should expect the notes to be called before maturity if interest rates remain stable or decline.

Unsecured Status and Credit Risk Considerations

The notes are characterized as unsecured and unsubordinated obligations of JPMorgan Chase & Co., meaning they are not secured by specific collateral. The disclosure emphasizes that any payment on the notes is subject to the credit risk of JPMorgan Chase & Co. Investors bear the full credit risk of the issuer and have no preferential claim on specific assets. The notes are explicitly not bank deposits and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations or guarantees of any bank entity.

The offering materials stress that preservation of capital is contingent on the issuer's ability to pay its obligations as they become due. Because these are unsecured obligations, investors have no priority claim ahead of other unsecured creditors of JPMorgan Chase. This credit risk exposure is a primary consideration for investors evaluating the notes alongside the interest rate structure and call feature.

Pricing and Selling Commission Details

The preliminary pricing supplement indicates that the price to public and fees remain subject to completion. The per-note pricing was not finalized in this preliminary document, though the pricing supplement states the price to public as $1,000 per $1,000 principal amount note, subject to completion. The price to public includes the estimated cost of hedging the issuer's obligations under the notes through one or more of its affiliates.

For sales to eligible institutional investors or fee-based advisory accounts where an affiliated or unaffiliated broker-dealer serves as an investment adviser, the price to public will not be lower than $967.60 or greater than $1,000 per $1,000 principal amount note. J.P. Morgan Securities LLC acts as agent for JPMorgan Chase and will pay all selling commissions it receives to other affiliated or unaffiliated dealers. If the notes priced as disclosed, selling commissions would be approximately $15.00 per $1,000 principal amount note, with a maximum cap of $30.00 per $1,000 principal amount note. Broker-dealers purchasing notes for sales to eligible institutional investors or fee-based advisory accounts may forgo some or all of these selling commissions.

Minimum Investment Requirements and Denominations

The notes may be purchased in minimum denominations of $1,000 and in integral multiples of $1,000 thereafter. This accessibility structure allows both individual and institutional investors to participate in the offering at relatively modest entry levels. The filing does not disclose a maximum offering size or aggregate principal amount for this issuance, suggesting the size remains subject to completion.

The Original Issue Date and settlement date is August 11, 2026, subject to the business day convention. The Pricing Date is stated as August 7, 2026, also subject to the business day convention. The notes have been assigned a CUSIP number of 48130KWZ6 for trading and identification purposes. These securities are part of JPMorgan Chase's Series E medium-term notes program, registered under Registration Statement No. 333-293684.

Risk Factors and Long Maturity Considerations

The offering disclosure highlights that the notes have a long maturity relative to other fixed income products, and longer-dated notes may be riskier than shorter-dated notes. The 13-year maturity from August 2026 to August 2039 exposes investors to extended interest rate risk, inflation risk, and credit risk of JPMorgan Chase over a significant time horizon. The disclosure directs investors to detailed risk discussions in the prospectus supplement and product supplement for comprehensive risk analysis.

The filing explicitly warns that investors should carefully consider the risks associated with the callable feature. The step-up structure, while mathematically attractive on paper, may never be fully realized if interest rates fall or remain stable, triggering an early call. The notes involve risks not associated with conventional debt securities, and the disclosure urges investors to consult with investment, legal, tax, and accounting advisers before investing.

Prospectus Documents and Regulatory Filing References

This preliminary pricing supplement is dated July 23, 2026, and supplements the prospectus dated April 17, 2026, the prospectus supplement dated April 17, 2026, and product supplement no. 1-I dated April 17, 2026. The offering is subject to completion, meaning certain final terms remain to be finalized at the time the notes actually price. Investors are directed to review these comprehensive base documents alongside the pricing supplement to understand the complete terms and conditions.

The disclosure notes that the pricing supplement, together with the accompanying prospectus and supplements, contains the full terms of the notes and supersedes all prior oral statements and written materials, including preliminary pricing terms, correspondence, trade ideas, sample structures, fact sheets, or brochures. JPMorgan Chase reserves the right to change the terms of the notes or reject any offer to purchase prior to issuance, with notification to investors of any material changes and the opportunity for investors to accept or reject such modifications.

Investor Considerations for Step-Up Structures and Call Risk

For investors evaluating this offering, the step-up structure represents both an opportunity and a challenge. The opportunity lies in potentially increasing income over time if the notes are held to maturity, with the highest rate of 7.75% annually payable only in the final three years. The challenge is that most favorable outcomes depend on interest rates rising significantly—otherwise, the call feature likely prevents investors from enjoying the higher rates. The disclosure explicitly states that unless interest rates rise substantially, investors should not expect to earn the highest scheduled rate because the notes will likely be called if rates remain stable or fall.

This structure appeals primarily to investors with specific yield curve expectations or those willing to accept call risk in exchange for higher current yields than they might obtain from comparable straight bonds. The stepped coupon mechanism rewards those who believe rates will rise, making the notes more likely to be held to maturity. However, investors bullish on rates should recognize that if their thesis is correct and rates rise materially, the call feature protects the issuer from unlimited upside obligation on these notes.

Previous Registration and Program Information

These notes are part of JPMorgan Chase & Co.'s existing medium-term notes program, filed under Registration Statement No. 333-293684. The company operates this shelf registration for ongoing issuance of various debt instruments across multiple product types and structures. The base prospectus and prospectus supplement dated April 17, 2026, and the product supplement no. 1-I also dated April 17, 2026, provide the foundational disclosure framework governing these notes.

The SEC website contains copies of the product supplement and prospectus documents at the URLs specified in the filing, with JPMorgan Chase's Central Index Key listed as 19617 on the SEC's EDGAR database. The preliminary nature of this pricing supplement indicates that final pricing, exact fees, and any additional terms remain subject to market conditions and investor demand at the time of final pricing.