What a Chime savings account is and how money moves in and out

A Chime savings account is a separate pot of money held by Chime, a financial technology company that partners with banks to offer accounts. When you open one, you get a savings account number and routing number — the same way a traditional bank account works. Money you deposit goes into that account and earns a small amount of interest, which means the bank pays you a percentage of what you hold there.

You move money into your Chime savings account by transferring it from your Chime checking account, from another bank account you own, or sometimes by direct deposit if your employer allows it. You move money out the same way — by transferring to your checking account or to an external bank account you've linked. Chime doesn't charge you fees to make these transfers, though the transfer itself usually takes one to three business days.

The account is FDIC insured, which means if Chime's partner bank fails, the government protects your money up to $250,000. This is the same protection a traditional savings account has.

Key Takeaways

  • A Chime savings account earns interest on the money you keep in it, and you can transfer money in or out to your Chime checking account without fees.
  • Chime's savings account is FDIC insured up to $250,000, the same as a bank savings account.
  • You can set up automatic transfers from your checking account to savings on a schedule you choose, which helps you save without thinking about it.
  • The interest rate Chime offers changes over time and is usually higher than what traditional banks pay, but you should check the current rate before opening.

How interest works on your savings

Interest is money the bank pays you for letting them use your money. Chime calculates interest based on the balance in your account and the interest rate they're currently offering. The rate changes — sometimes it goes up, sometimes down — depending on what the Federal Reserve does with its own interest rates.

Chime typically compounds interest daily, which means they calculate what you've earned and add it to your balance every single day. That new balance then earns interest the next day, so you're earning interest on your interest. Over time, this compounds into more money than if interest were calculated once a month or once a year.

You don't have to do anything to earn the interest — it happens automatically. The interest appears in your account balance, and you can see it listed in your transaction history.

Automatic transfers and the "Save When You Get Paid" feature

Chime offers a feature called Save When You Get Paid that automatically moves money from your checking account to your savings account on the day your paycheck arrives. You set the amount — it could be $10, $50, or any number you choose — and Chime does the transfer without you having to remember.

This feature works only if you set up direct deposit with your employer, because Chime needs to know when the money arrives. If you get paid by check or cash, you can still set up automatic transfers on a schedule you pick — for example, every Friday or the first of the month.

The point of automatic transfers is to make saving easier by removing the decision. Money moves before you see it in your checking account, so you're less likely to spend it.

Limits on how often you can withdraw

Federal law limits how many times per month you can withdraw money from a savings account. The limit is six withdrawals or transfers out per month, whether you're moving money to your checking account, to another bank, or taking cash out at an ATM.

If you go over six in a month, Chime may charge a fee or convert your savings account to a checking account. This rule applies to all savings accounts at all banks — it's a federal rule, not a Chime rule. However, transfers between your own Chime checking and savings accounts sometimes don't count toward the limit, so check Chime's current policy before you open.

This limit exists because savings accounts are meant to encourage you to hold money rather than move it constantly. If you find yourself needing to withdraw more than six times a month, a savings account may not be the right tool for your situation.

How Chime's savings account differs from a traditional bank savings account

The biggest difference is that Chime is not a bank — it's a technology company that partners with banks to offer accounts. You don't walk into a Chime branch or call a local office. Everything happens through the Chime app or website. This means Chime can keep costs lower and often pays higher interest rates than traditional banks.

A traditional bank savings account at a large national bank often earns very little interest — sometimes less than 0.01 percent. Chime's rate is usually higher, though it changes. Both are FDIC insured, so your money is equally protected either way.

The trade-off is convenience. If you need to deposit cash, a traditional bank has branches and ATMs where you can do it. Chime has fewer ATM options, though it partners with networks that let you use certain ATMs for free. If you prefer talking to a person, Chime offers customer service by phone and chat, but not in person.

What happens if you don't use your savings account for a long time

Chime does not charge you a monthly fee for an inactive savings account, and the account will not close just because you haven't used it. Your money stays there, and interest continues to accrue. You can log in and transfer money out whenever you want.

However, if your Chime checking account is closed for inactivity, your savings account may be affected depending on how Chime's policies work at that time. It's worth logging in at least once every few months to keep both accounts active, especially if you're not using them regularly.

Frequently Asked Questions

Can I have more than one Chime savings account?

No, Chime allows one savings account per person. If you want to save for multiple goals, you can use your single savings account and track different purposes in a notebook or spreadsheet, or you can open accounts at other banks for separate savings goals.

What's the minimum balance to open a Chime savings account?

Chime does not require a minimum opening balance. You can open the account with zero dollars and deposit money whenever you're ready. There's also no monthly fee if your balance is low.

Does Chime's interest rate change, and how often?

Yes, Chime's interest rate changes based on what the Federal Reserve does with its rates. Chime usually announces changes on their website and in the app. You should check the current rate before opening, because it may be different from what you read elsewhere.

Can I withdraw money from my Chime savings account at an ATM?

Yes, but it counts toward your six monthly withdrawals. Chime partners with ATM networks so you can withdraw at many ATMs without a fee, but check which ones are free in your area before opening the account.

What happens if I exceed the six monthly withdrawals?

Chime may charge a fee for each withdrawal over six, or may convert your savings account to a checking account. The exact consequence depends on Chime's current policy, so read the account agreement before opening.