Chime savings accounts do not earn interest
Chime's savings account, called SpotMe Savings, does not pay interest on the money you keep in it. Your balance sits at zero percent annual percentage yield (APY), meaning the bank does not add money to your account based on how long you hold it there or how much you have saved.
This is different from traditional savings accounts at banks like Chase, Bank of America, or credit unions, which typically offer APY ranging from 0.01% to 5.35% depending on the institution and current market rates. Chime prioritizes speed and ease of use over interest earnings, so if earning interest on savings is your goal, a Chime account is not the right tool.
Key Takeaways
- Chime's SpotMe Savings account earns zero percent APY, so your balance will never grow from interest alone.
- High-yield savings accounts at online banks and credit unions currently offer APY between 4% and 5.35%, which is substantially more than Chime.
- Chime's value comes from early direct deposit, no overdraft fees, and automatic savings features—not from interest payments.
- If you want both a checking account and interest-bearing savings, you can use Chime for checking and open a separate high-yield savings account elsewhere.
How Chime makes money without charging you interest
Chime does not charge overdraft fees, monthly maintenance fees, or minimum balance fees. Instead, the company makes money through interchange fees—small payments Chime receives when you swipe your debit card at a merchant. Because Chime does not need to pay you interest to stay competitive on fees, it can afford to offer a no-fee checking and savings product.
This business model works for Chime because most users value convenience and speed over interest earnings. The bank's main selling points are early direct deposit (getting your paycheck up to two days early), automatic savings features that round up purchases, and the SpotMe feature that covers small overdrafts without a fee. Interest is not part of the pitch.
What Chime savings accounts actually do
SpotMe Savings is designed to help you set money aside automatically, not to grow your money over time. When you enable the feature, Chime rounds up every debit card purchase to the nearest dollar and moves the difference into savings. If you buy coffee for $3.50, Chime moves $0.50 to savings. Over time, these small amounts add up without you thinking about it.
You can also transfer money into savings manually through the Chime app. The account has no minimum balance requirement and no monthly fee. Money moves between your checking and savings instantly, so you can access your savings whenever you need it. The tradeoff is that you earn nothing on what you save—the account is a tool for separating money, not for growing it.
How interest rates work at other banks
Banks that do offer interest on savings accounts pay you a percentage of your balance each year, expressed as an annual percentage yield (APY). The rate changes based on what the Federal Reserve does with interest rates. When the Fed raises rates, banks raise their savings APY. When the Fed lowers rates, banks lower their APY.
As of late 2024, high-yield savings accounts at online banks like Marcus, Ally, and American Express offer APY between 4% and 5.35%. A traditional bank like Chase or Bank of America typically offers 0.01% to 0.05% APY on savings. Credit unions often fall somewhere in the middle. The difference matters: on $10,000, a 4.5% APY earns you $450 per year, while 0.01% earns you $1.
When Chime savings makes sense anyway
Chime savings is useful if you value the automatic round-up feature and do not have a large amount of money sitting in savings. If you are saving small amounts through round-ups and occasional transfers, and you plan to spend that money within a few months, the lack of interest is not a major loss. The convenience of having savings linked to your checking account and accessible instantly may outweigh the zero interest.
Chime also works well as a second account. You can use Chime for checking and everyday spending, then open a high-yield savings account at another bank for money you want to keep longer. This way you get Chime's no-fee checking and early direct deposit, plus interest earnings on your savings elsewhere.
Comparing Chime to savings accounts that pay interest
| Feature | Chime SpotMe Savings | High-Yield Savings (typical) | Traditional Bank Savings (typical) |
|---|---|---|---|
| APY | 0% | 4% to 5.35% | 0.01% to 0.05% |
| Monthly fee | None | None | $0 to $5 |
| Minimum balance | None | $0 to $25,000 | $0 to $10,000 |
| Automatic round-up | Yes | No | No |
| Instant access to funds | Yes | Yes | Yes |
What to do if you want both checking and interest-bearing savings
Open a Chime checking account for your paycheck and everyday spending. Then open a separate high-yield savings account at an online bank like Marcus, Ally, or American Express, or at a credit union. Transfer money you want to save into that account and let it earn interest. This approach gives you Chime's benefits (no fees, early direct deposit, round-up savings) plus interest earnings on larger amounts.
The transfer between banks typically takes one to three business days, so this setup works best if you are not moving money back and forth constantly. If you need to access your savings immediately and frequently, the delay may be annoying. In that case, accept that Chime savings earns nothing and use it only for short-term savings or automatic round-ups.
Frequently Asked Questions
Can I earn interest on my Chime checking account?
No. Chime checking accounts also earn zero percent APY. Chime does not offer interest on any account type. If interest earnings matter to you, you need to open an account at a different bank.
Does Chime ever change its interest rate?
Chime's rate is and has always been zero percent. The company has not announced plans to add interest to savings or checking accounts. If this changes in the future, Chime would notify account holders through the app or email.
What is the best high-yield savings account right now?
The best account depends on your needs, but Marcus, Ally, American Express, and LendingClub currently offer APY between 4% and 5.35% with no monthly fees and no minimum balance. Rates change frequently, so compare current rates on each bank's website before opening an account.
Can I use Chime for checking and another bank for savings?
Yes. Many people use Chime for checking and early direct deposit, then move money to a high-yield savings account at another bank. Transfers between banks take one to three business days, so this works best if you are not accessing your savings constantly.
Does Chime charge fees to move money to savings?
No. Transfers between your Chime checking and Chime savings are free and instant. Transfers to accounts at other banks are also free but take one to three business days.