Chime pays interest daily and deposits it monthly
Chime calculates interest on your savings account balance every day, but deposits the interest payment into your account once a month. The exact date of the monthly deposit depends on your account opening date — Chime uses your account anniversary as the deposit day. So if you opened your account on the 15th of a month, you'll receive your interest deposit on the 15th of every month going forward.
The interest rate itself varies. Chime's savings account rates change based on market conditions and are not fixed. You can check your current rate by logging into the Chime app or website under your savings account details. The rate applies to your entire savings balance, and interest accrues on every dollar you hold, even if you add or withdraw money during the month.
Unlike some banks that only pay interest on a minimum balance or charge fees that eat into earnings, Chime does not have a minimum balance requirement for its savings account and does not charge monthly maintenance fees. This means all the interest you earn stays in your account.
Key Takeaways
- Interest is calculated daily on your full savings balance but deposited once per month on your account anniversary date.
- Chime's interest rate changes over time and is not may provide to stay the same, so check your app for your current rate.
- You earn interest on every dollar in your savings account with no minimum balance requirement.
- Monthly interest deposits happen automatically — you do not need to do anything to receive them.
- Chime does not charge monthly fees that would reduce your interest earnings.
When your interest deposit actually hits your account
The monthly deposit lands on the same day each month. If your account anniversary is the 3rd, you get your interest on the 3rd. If it's the 28th, you get it on the 28th. If your anniversary falls on a day that doesn't exist in a given month (like the 31st in February), Chime deposits the interest on the last day of that month instead.
The interest is added directly to your savings account balance, so you can see it reflected immediately when you check your balance. You do not need to transfer it or take any action — it appears automatically. If you have set up direct deposit or other automatic transfers from your savings account, those continue to work normally after the interest is added.
How the daily calculation works
Each day, Chime looks at your savings account balance at the end of that day and applies the annual interest rate to calculate how much interest you've earned. That daily amount is added to a running total throughout the month. At the end of the month, all those daily amounts are combined and deposited as a single payment.
This means the interest you earn depends on how much money you have in savings each day. If you deposit $500 on the 10th, you earn interest on that $500 from the 10th onward. If you withdraw $200 on the 20th, your interest calculation drops to reflect the lower balance from that point forward. The interest is never taken back if you withdraw money — it stays in your account once it's deposited.
Comparing Chime's interest to other banks
Chime's savings account interest rate is typically lower than rates offered by online banks that specialize in savings products. Online-only banks often offer rates that are two to three times higher than Chime's rate, though this varies depending on the current economic environment and each bank's policies. If maximizing interest earnings is your primary goal, you may want to compare Chime's current rate against other options.
However, Chime's advantage is convenience and integration with your checking account. If you already use Chime for checking and direct deposit, moving money to savings is instant and free. You can also access your savings through the same app and debit card. For someone who values simplicity over the highest possible rate, Chime's savings account may be the better choice.
Some banks charge fees that reduce your interest earnings, or require a high minimum balance to earn any interest at all. Chime has neither of these restrictions, so your full balance earns interest from day one.
What happens if you close your account mid-month
If you close your Chime savings account before your monthly interest deposit date, you will not receive the interest that has accrued up to that point. The interest is only paid out when the monthly deposit occurs. So if you close your account on the 20th of the month and your anniversary date is the 25th, you lose the interest earned from the 1st through the 20th.
If you close your account after your monthly interest deposit has already been made, you keep that interest. The interest becomes part of your account balance and transfers with you when you close the account or move the money elsewhere.
How to track your interest earnings
Open the Chime app and go to your savings account. You can see your current balance and your interest rate listed there. Some versions of the app also show a running total of interest earned in the current month, though this feature varies. You can also check your monthly statements, which list each interest deposit as a separate transaction.
If you want to estimate how much interest you'll earn, multiply your average savings balance by your annual interest rate and divide by 12. For example, if you keep $1,000 in savings and your rate is 2% annually, you'd earn roughly $1.67 per month (though the actual amount depends on the exact daily balances throughout the month).
Frequently Asked Questions
Can I earn interest on my Chime checking account?
No. Chime only pays interest on money held in the savings account. Your checking account balance does not earn interest. You can transfer money between your checking and savings accounts instantly through the app at no cost.
What if I don't have a savings account yet?
You can open a Chime savings account through the app if you already have a Chime checking account. The savings account is separate from checking but linked to the same app. Interest begins accruing on the day you open the account.
Does Chime report interest to the IRS?
Yes. If your interest earnings reach $10 or more in a calendar year, Chime will send you a Form 1099-INT and report the earnings to the IRS. You must report this interest as income on your tax return. Keep your monthly statements for your records.
What if Chime changes its interest rate?
Chime can change its interest rate at any time without notice. The new rate applies to interest calculated going forward. You can check your current rate anytime in the app. If the rate drops significantly, you have the option to move your money to another bank.
Does interest compound monthly?
Yes. When your monthly interest deposit is added to your savings account, it becomes part of your balance. The next month's interest calculation includes that deposited interest, so you earn interest on your interest. This is called compounding.