Chase charges a monthly fee on most savings accounts, but you can waive it
Chase's standard savings account, called the Chase Savings Account, charges a $5 monthly maintenance fee. However, you can avoid this fee entirely by keeping a minimum balance. If you maintain at least $500 in your account at all times, Chase will not charge you the fee each month.
Chase also offers a higher-tier savings account called the Chase Premier Savings Account, which has a $25 monthly maintenance fee. This account requires a $10,000 minimum balance to waive the fee. The higher fee comes with additional benefits like higher interest rates and priority customer service, but most people opening a savings account for the first time do not need these extras.
The key point: you are not forced to pay these fees if you can keep the required balance in your account. Many people find it easier to maintain $500 than to pay $5 every month, especially if they are building savings.
Key Takeaways
- Chase's basic savings account charges $5 per month unless you keep at least $500 in the account.
- The Premier Savings Account charges $25 per month but requires a $10,000 minimum balance to waive the fee.
- The fee is waived automatically each month if your balance meets the requirement on the last day of the statement period.
- If you fall below the minimum balance even once, you will be charged the fee for that month.
- Other banks offer savings accounts with no monthly fee and no minimum balance requirement.
How the minimum balance requirement works
Chase looks at your account balance on the last day of your statement period — usually the last calendar day of the month. If your balance is $500 or higher on that day, the $5 fee does not post to your account. If your balance drops below $500 at any point during the month, you will still be charged the fee.
This means you need to keep the money in the account consistently, not just deposit it at the end of the month. If you withdraw $100 on the 28th and your balance falls to $450, you will owe the fee for that month even if you deposit the money back on the 30th.
The fee posts automatically on the statement closing date if you do not meet the minimum. You do not have to do anything — Chase deducts it from your account without asking.
What happens if you are charged the fee
If you are charged the $5 monthly fee, it straightforward comes out of your account balance. There is no separate bill or notice beyond what appears in your statement. The fee reduces the amount of money you have saved, which also reduces the interest you earn that month.
If you realize you have been paying the fee for several months, you can contact Chase and ask them to refund past fees — but this is not may provide. Some branches will refund one or two months if you explain that you did not understand the requirement. The best approach is to prevent the fee from starting in the first place by maintaining the balance from the beginning.
Comparing Chase to other banks
Many online banks and credit unions offer savings accounts with no monthly fee and no minimum balance. Banks like Marcus, Ally, and Discover do not charge monthly maintenance fees at all. If you are just starting to save and $500 feels like a lot to keep set aside, these alternatives might be worth considering.
The trade-off is that Chase has physical branches where you can deposit cash and speak to someone in person. Online banks have higher interest rates but require you to transfer money electronically or mail in checks. For someone new to banking, the ability to walk into a branch can be worth the $5 monthly fee — but only if you can comfortably maintain the $500 balance.
Interest rates and how fees affect your savings
Chase's savings account interest rate changes based on market conditions and is typically lower than what online banks offer. As of now, rates vary, but Chase's rate is usually less than 1% annually on the basic savings account.
When you pay a $5 monthly fee, you are losing $60 per year in savings. If your account earns only $10 in interest per year, the fee wipes out most of your earnings. This is why maintaining the minimum balance to avoid the fee is so important — the fee can cost you more than the interest you earn.
Other Chase savings products with different fees
Chase offers a few other savings options beyond the standard and Premier accounts. The Chase High Yield Savings Account (available through Chase Bank) has different fee and balance requirements than the regular savings account. Some Chase products are only available to customers who also have a checking account with Chase.
If you already have a Chase checking account, ask your banker whether you may have access to for any savings accounts with lower fees or higher interest rates. Existing customers sometimes have access to products not advertised to new customers.
Frequently Asked Questions
Can I avoid the fee by keeping the money in a different account?
No. Chase only looks at the balance in the savings account itself. Money in your checking account, investment account, or another bank does not count toward the $500 minimum. The balance must be in the specific savings account to waive the fee.
What if I need to withdraw money for an emergency?
You can withdraw money whenever you need it, but if your balance falls below $500 on the last day of the month, you will be charged the fee that month. If emergencies happen regularly, you might be better off with a bank that has no minimum balance requirement.
Does the fee explore if I just opened the account?
The fee typically starts in the first full month after you open the account. Some branches waive the first month's fee as a courtesy, but this is not may provide. Ask when you open the account whether they will waive the first fee.
Can I switch to a different Chase savings account to avoid the fee?
Switching accounts does not help if all the accounts you are considering have monthly fees. However, if you have a Chase checking account, ask whether you may have access to for a savings account with different terms or whether combining accounts changes your fee structure.
What if my balance is exactly $500?
A balance of exactly $500 meets the minimum requirement, and the fee will be waived. You need $500 or more — not more than $500. However, any amount below $500 will trigger the fee.