Chime savings accounts do earn interest, but the rate is very low
Chime offers a savings account that pays interest on the money you keep in it. The rate changes over time and is currently much lower than what you would earn at a traditional bank or online savings account. Chime does not charge monthly fees for the savings account, and you can move money between your Chime checking and savings accounts when ready through the app.
The interest rate Chime pays depends on the current economic environment and changes without notice. You should check the Chime app or website for the current rate before opening an account if earning interest is important to your decision. The interest is calculated daily and added to your account monthly.
Key Takeaways
- Chime savings accounts earn interest, but the rate is typically lower than online banks or credit unions offer.
- Interest is calculated every day and deposited into your account once a month.
- There are no monthly maintenance fees, overdraft fees, or minimum balance requirements for Chime savings accounts.
- You can transfer money between your Chime checking and savings when ready through the mobile app.
- The interest rate can change at any time, so you should verify the current rate before deciding to open an account.
How interest is calculated and when you receive it
Interest on a Chime savings account is calculated daily based on your account balance. This means the bank looks at how much money you have in the account each day, and that amount earns a tiny fraction of the annual interest rate. At the end of each month, all those daily calculations are added together and the total interest is deposited directly into your savings account.
The longer you keep money in the account and the higher your balance, the more interest you earn. However, because Chime's rate is low compared to other savings options, the monthly interest payment is usually just a few cents or dollars, even if you have several hundred dollars saved.
Comparing Chime's rate to other savings accounts
Online banks and some credit unions currently offer savings rates that are significantly higher than Chime. These institutions can pay more because they have lower overhead costs than traditional brick-and-mortar banks. If your main goal is to earn interest on savings, you may earn more money elsewhere, even though Chime's account has no fees.
The trade-off is convenience. Chime is designed as a mobile-first bank, so moving money between accounts is fast and happens when ready in the app. If you use Chime for your checking account and want a straightforward way to save without switching apps or websites, the savings account works well even if the interest rate is not competitive. If you are primarily focused on earning the highest interest possible, a dedicated online savings account at a bank like Marcus, Ally, or a local credit union may serve you better.
No fees and no minimum balance requirements
Chime does not charge a monthly maintenance fee for its savings account, and there is no minimum balance you must keep in the account. You can open the account with any amount of money, even just a few dollars. This makes it a low-risk way to start saving if you are new to having a dedicated savings account.
You also will not be charged for transferring money between your Chime checking and savings accounts. The transfer happens when ready through the app, so you can move money whenever you need to without worrying about fees or waiting periods.
How to access your Chime savings account
You manage your Chime savings account entirely through the Chime mobile app or website. You cannot visit a physical branch because Chime is an online-only bank. To transfer money into savings, open the app, go to the transfer section, and move funds from your checking account. The transfer completes right away.
You can also set up automatic transfers from your paycheck or from your checking account on a schedule you choose. This helps you save without having to remember to move the money manually each time. The app shows you your current balance, interest earned, and transaction history.
What happens if you need to withdraw money
You can withdraw money from your Chime savings account at any time without penalty. Unlike some savings accounts that limit how many withdrawals you can make per month, Chime does not restrict withdrawals. The money transfers back to your checking account when ready when you request it through the app.
Because there are no withdrawal limits or penalties, the account works well if you are saving for something you might need to access quickly. However, if your goal is to build long-term savings and not touch the money, you might earn more interest at a dedicated savings account elsewhere.
Frequently Asked Questions
Is my money in a Chime savings account protected if the bank fails?
Yes. Chime is a financial technology company that partners with banks to hold customer deposits. Your savings account is covered by FDIC insurance up to $250,000, which means your money is protected even if the bank fails. Chime clearly states which partner bank holds your deposits.
Can I earn interest on my Chime checking account too?
No. Chime checking accounts do not earn interest. Only the savings account pays interest. This is standard across most banks — checking accounts are designed for frequent transactions, while savings accounts are meant for money you keep longer term.
How often does Chime change its interest rate?
Chime can change its interest rate at any time without notice. The rate typically moves when the Federal Reserve changes its benchmark interest rate, which affects all banks. You should check the Chime app or website periodically to see the current rate if you are tracking how much interest you are earning.
What if I want higher interest — should I move my money?
That depends on what matters most to you. If earning the highest interest is your priority, online banks and credit unions often pay more. If you value having everything in one app and do not mind a lower rate, keeping your savings at Chime is simpler. You can also split your savings — keep some at Chime for straightforward access and move some to a higher-rate account elsewhere.