The costs, interest rates, and well-known automated savings program connected to the Chime Checking account are all examined in our evaluation of the Chime Savings Account.
Savings accounts might aid you in achieving your financial objectives. But it's critical to make the best financial decision possible. If you want to achieve the best savings rates, you might want to think about opening an online savings account.
Chime provides high-yield savings accounts so you can increase your money more quickly. There are no monthly fees with these savings accounts, and they offer a fair rate.
Keep reading to learn how the Chime savings account works to help decide if it's right for you.
Chime Savings Account Pros & Cons
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What Kind of Interest Can You Get?
A savings account's annual percentage yield (APY) indicates how much interest you can make over a year.
You will earn more interest if the APY is higher. Online savings accounts pay you a higher annual percentage yield (APY) than traditional banks do.
The Chime savings account offers an APY that is significantly higher than the average savings rate in the country. It significantly outperforms savings accounts provided by physical banks or credit unions.
There are no savings tiers. The Chime savings rates are applied to all balances. So, whether you save $100 or $100,000, you may still earn a terrific return.
Your account will receive a monthly credit for interest that is calculated daily. Remember that Chime's savings account, like all other savings accounts, has a variable rate. As a result, your rate and APY may increase or decrease over time.
What Is the Price of a Chime Savings Account?
Banking fees can be a pain, particularly if they reduce the interest you might otherwise receive on a savings account.
Savings accounts frequently include a monthly maintenance cost at conventional banks. Depending on the bank, you might be able to avoid paying the fee by setting up direct deposits or maintaining a minimum amount. Since there is no monthly cost for a savings account, Chime does not need you to perform any of those things.
To avoid fees, there is no minimum balance requirement. Additionally, interest is paid on balances as low as $0.01.
Chime Checking Account Requirements
Here's something crucial to understand: To open a Chime savings account, you must first have a Chime checking account. There are no extra costs associated with the Chime checking account. And it has these awesome features:
- Direct deposit allows for up to two days' early payment.
- Debit Visa card
- Chime SpotMe, which doesn't charge you anything if you overdraw your account by up to $200.
- Depositing cash at any Walgreens store
- 24/7 access to mobile banking
- A Chime checking and savings account can be opened online in a matter of minutes.
Excess Withdrawal Fees and ATMs
Chime is not a bank; it is a provider of financial technologies. Therefore, it lacks an ATM network. However, there are more than 60,000 fee-free in-network ATMs where you can withdraw cash.
Once again, to achieve that, you'll need a Chime checking account and a Visa debit card.
You won't be able to use an ATM to get cash out of your Chime savings account. Instead, you must first transfer funds from savings to checking.
You must pay a $2.50 withdrawal fee for each transaction if you use an ATM that is not part of the Chime network. You may be charged by the ATM operator as well.
For savings accounts, Chime does have monthly withdrawal caps. Up to six withdrawal operations are permitted each month. If you exceed that amount, there is no indication of an excess withdrawal fee on the Chime website. However, you might not need to be concerned about too many transactions since you cannot withdraw cash from ATMs.
How to Add Money to Your Account
ATM deposits into savings accounts are also not permitted. If you want to add money to a Chime savings account, you can do the following:
- Transfer funds from your Chime checking account,
- When you use your Visa debit card to make transactions, Round Ups will automatically conserve your spare change.
- Automatically save after each payment
When you sign up for a direct deposit, you can receive your paychecks up to two days earlier in your Chime checking account. Chime will deposit 10% of each eligible direct deposit of $500 or more into your savings account as long as you instruct it to.
Accessing Your Chime Savings Account
Chime makes opening a bank and savings account online simple. To make your first deposit, you simply need to complete a brief application and link an outside bank account. You can manage your accounts online or via the Chime mobile app once they are open.
The Chime app can be used for:
- The balance of your savings account
- Moving funds between your checking and savings accounts
- Analyzing past transactions
- A mobile check deposits
- Free money transfers to everyone
More than 60,000 ATMs allow you to withdraw money from your checking account. You can go to a local Walgreens and deposit cash without paying a fee.
Chime accepts payments with mobile wallets including Apple Pay and Google Pay. Additionally, you can send paper checks from your checking account using the Chime app.
Online Savings Accounts: Are They Better?
Online savings accounts and conventional savings accounts at traditional banks are hotly contested topics. It helps to weigh the advantages and disadvantages if you're unsure whether to choose an online savings account.
What's advantageous about Internet savings accounts is this:
- Online banks may provide savers with significantly better rates.
- You're less likely to experience excessive banking costs as compared to traditional banks.
- It's possible to have reduced minimum deposit and balance requirements.
- With mobile and online banking, you can access your money easily.
- Some Internet savings accounts provide extra features that are unavailable at conventional banks.
- You might have access to an ATM depending on the bank.
Online savings accounts are preferable since you may typically earn higher interest rates. If you're sick of giving money back to your bank, there are also no fees, which is a pleasant bonus.
The main issue that Internet savings accounts typically lack is access to branch banking.
If you're used to going to the bank to deposit cash or cash checks, that is a disadvantage. However, Chime provides a workaround with remote check deposits and cash deposits at Walgreens locations.
It all depends on your needs if an internet savings account would be useful to you. An online savings account is probably the winner if earning a fantastic rate is your primary objective. However, you might want to maintain some of your funds at a conventional bank if you need to be able to visit a branch.
Exactly Who Should Decide on a Chime Savings Account?
If you're looking for a fresh approach to banking, you might want to have a look at a Chime savings account. Chime, a fintech business, provides a cutting-edge method of checking, saving, and money management.
A Chime savings account might be something you think about if:
- You are ready to learn more about the advantages of online savings accounts.
- A break from paying hefty banking fees would be nice.
- You are confidently setting up a new online checking account and do not necessarily require access to branch banking.
If you prefer in-person banking, you can think about a brick-and-mortar bank instead of a Chime savings account.
Additionally, it's crucial to compare various online savings accounts. Chime's savings rate is respectable, but it's not the highest APY available.
If having the best rate is what matters the most, you might discover that another online savings account is a better fit.
When selecting the ideal savings account for you, keep in mind to consider additional factors including fees, minimum deposit requirements, and minimum balance restrictions.
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