Chime savings accounts have no monthly fees, no minimum balance, and pay interest—but the rate is low and the account is tied to your checking account
Chime's savings account is a linked savings product, not a standalone account. You open it through the Chime app alongside a checking account, and money moves between the two instantly. There are no monthly maintenance fees, no minimum balance to open or keep the account, and no overdraft fees if you go negative. Chime pays interest on the balance, though the rate changes and is currently lower than what many online banks offer.
The real question is whether Chime's savings account fits your situation. If you already use Chime checking and want a simple place to set money aside without fees, it works. If you're comparing it to other savings options—a traditional bank, an online bank, or a credit union—you need to know what you're trading off: convenience versus interest rate, and integration versus independence.
Key Takeaways
- Chime savings accounts charge no monthly fee, require no minimum balance, and let you move money to checking instantly through the app.
- The interest rate Chime pays on savings is lower than rates at most online banks, and it changes without notice.
- Your Chime savings account is linked to your Chime checking account—you cannot open savings alone, and closing checking closes savings too.
- Chime savings works best if you already bank with Chime and want a low-friction place to hold money; it is not the best choice if maximizing interest is your goal.
How Chime savings accounts work and what they cost
When you open a Chime checking account, you can create a linked savings account at the same time through the app. Money in savings earns interest, and you can transfer funds between checking and savings instantly—no waiting for a transfer to clear. The account has no monthly fee, no minimum opening balance, and no minimum balance to keep the account open.
Chime does not charge overdraft fees if your checking account goes negative, and that protection extends to the linked savings account. However, Chime can and does decline transactions if you don't have funds available, so the lack of overdraft fees is not the same as a line of credit.
The interest rate Chime pays on savings balances varies and is set by Chime, not by you. As of the most recent public information, the rate is significantly lower than what online banks like Marcus, Ally, or Discover offer. Chime does not publish a rate may provide, so the rate can change at any time without advance notice.
Chime savings versus online banks and credit unions
If your main goal is to earn the highest interest possible on savings, Chime is not the best choice. Online banks typically offer rates two to three times higher than Chime's current rate, and those rates are published and updated regularly so you know what you're earning. Credit unions often offer competitive rates as well, especially if you meet minimum balance or direct deposit requirements.
Where Chime wins is convenience and speed. If you already have a Chime checking account and want to move money into savings without opening a second account at a different bank, Chime's linked savings is frictionless. Transfers happen instantly, and you manage everything in one app. You also avoid the hassle of linking external accounts or waiting for transfers to settle.
The trade-off is real: you pay for that convenience by earning less interest. If you have $5,000 in savings, the difference between Chime's rate and an online bank's rate could be $50 to $100 per year. For some people, that's worth the simplicity. For others, it's not.
When Chime savings makes sense
Chime savings works well if you use Chime checking as your main account and you want a designated savings space without opening another bank account. You might use it as a short-term holding area—money you're saving for a specific purchase in the next few months, or an emergency fund you want to access quickly. The instant transfer to checking means you're never more than a few taps away from your money.
It also works if you're new to banking and want to start building a savings habit without fees or complexity. Chime's app makes it easy to see your balance and move money, and there's no penalty for keeping a small balance or letting it sit untouched.
Chime savings does not work well if you're trying to maximize interest earnings or if you want to keep savings completely separate from checking. If you're saving for a long-term goal—a house down payment, retirement, or a major purchase years away—you should compare rates at online banks or credit unions first.
How interest is calculated and paid
Chime calculates interest daily on your savings balance and deposits it monthly. The interest is added directly to your savings account, so your balance grows each month. However, because Chime's rate is low and can change without notice, the actual interest you earn may be small—especially if your balance is under $1,000.
Interest is taxable income. Chime will send you a 1099-INT form at the end of the year if you earned $10 or more in interest, and you'll report that on your tax return. If you earn less than $10, Chime does not issue a form, but the interest is still technically taxable.
What happens if you close your Chime account
Your Chime savings account is not independent—it's tied to your Chime checking account. If you close your checking account, your savings account closes too. Any money in savings will be transferred to checking (or to a linked external account if you specify one), and then you'll need to withdraw it or move it elsewhere.
If you want to keep a savings account but close checking, Chime does not allow that. You have to choose: keep both accounts or close both. This is different from traditional banks, where checking and savings are often separate products that can be managed independently.
FDIC protection and account security
Chime is a financial technology company, not a bank. However, Chime partners with banks to hold customer deposits, and those deposits are FDIC insured up to $250,000 per account holder per bank. Your checking and savings balances are combined for FDIC purposes, so if you have $150,000 in checking and $100,000 in savings, the total $250,000 is covered.
Chime uses encryption and multi-factor authentication to protect your account. If your card is lost or stolen, you can freeze or cancel it instantly in the app. If someone makes an unauthorized transaction, Chime's fraud protection covers it, though you may need to dispute the charge and wait for an investigation.
Frequently Asked Questions
Can I earn more interest by keeping a higher balance in Chime savings?
No. Chime pays the same interest rate on all balances, regardless of size. There are no tiers or bonuses for larger amounts. If you want to earn more interest, you need to move money to a bank offering a higher rate or find a savings product with a promotional bonus.
What is Chime's current savings interest rate?
Chime's rate changes and is not published on a fixed schedule. You can see the current rate in the Chime app under your savings account details. Compare it to rates at online banks like Marcus, Ally, or Discover to see how it stacks up.
Can I transfer money from Chime savings to a different bank?
Yes. You can link an external bank account in the Chime app and transfer money out. Transfers to external accounts typically take one to three business days, depending on the receiving bank. Transfers between Chime checking and savings are instant.
What happens to my savings if Chime goes out of business?
Your deposits are FDIC insured up to $250,000, so you're protected even if Chime fails. The FDIC would transfer your insured balance to another bank or send you a check. This protection applies to both checking and savings combined.
Is Chime savings better than keeping money in checking?
Yes, because savings earns interest and checking typically does not. Even though Chime's rate is low, you earn something rather than nothing. If you have money you don't need immediately, moving it to savings is the better choice.