2017 Review: Chase Savings Account vs. Barclays Online Savings Account
There are a variety of options available to consumers in need of savings accounts. Consumers can choose to open a savings account at their existing bank, explore the products offered by other banks, or even open a purely online savings account.
This article will compare two different savings accounts: the Chase savings account and the Barclays online savings account.
This article on the Chase savings account and the Barclays savings account and Barclays online savings account will provide an overview of the salient details to provide a helpful comparison for consumers.
This comparison will go over the features each account (Chase saving account and Barclays online savings account) comes with and the Chase savings interest rate versus the Barclays interest rate.
Chase Savings Accounts: Overview
There are two popular Chase Bank savings accounts that are offered: Chase Savings and Chase Plus Savings.
Chase Bank Savings Accounts: Chase Savings
The Chase Savings Account is a Chase Bank savings account that provides customers with a product that helps them meet their basic savings goals. It is the most popular Chase savings account offered by the bank for the simplicity and comprehensiveness of the account.
With its 24-hour telephone support and connection to online banking, this Chase saving account also provides customers with support and peace of mind.
The Chase savings account requires a $25 minimum deposit in order to open the account. There is also a $5 monthly maintenance fee for the Chase Bank savings account.
Automatic Savings Program with Your Chase Bank Savings Account
Customers who apply for this Chase savings account can opt into the Chase Bank savings account’s helpful Chase Automatic Savings program. This Chase savings account bonus helps Chase saving account holders to practice implementing one of the personal finance rules of thumb: pay yourself first.
Pay yourself first? It means that you put money toward your Chase savings account before paying your monthly expenses. Most people pay off all of their bills and then put a little toward savings if they can discipline themselves not to spend the remainder on impulsive purchases for entertainment.
Image Source: Chase Savings
The Chase Automatic Savings program that Chase savings account holders can opt into allows customers to set up automatic withdrawals from their Chase checking account to their Chase saving account.
Customers decide on the amount and the frequency and can change the settings in their Chase Bank savings account whenever they choose.
Fees on Chase Savings Accounts Can Be Waived
An added benefit of the Chase Bank savings account is that it is set up to encourage you to save. As mentioned earlier, there is rarely much temptation to save.
After paying your monthly expenses, you are likely to want to put the money toward dinner or drinks than you are to put it toward your Chase savings account. But this Chase saving account incentivizes its customers for saving.
Chase Bank savings account holders have the Chase savings account monthly fee waived if they set up an automatic monthly transfer of at least $25 to go toward their Chase saving account. It is a handy Chase savings account bonus feature to serve as gratification for those who have trouble with the delayed gratification of regularly saving their money as opposed to spending it.
Chase Bank Savings Account Is Accessible Online, by Phone, or by Smartphone
The Chase savings account is set up to be as easily accessible to its Chase Bank savings account holders as possible.
Customers have access to 24-hour customer support over the telephone and access to 24/7 online banking so that they can transfer money from their checking account to their Chase saving account at any time. There is also a mobile app from which Chase savings accounts can be accessed.
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Stay on Top of Your Chase Savings Account Activity with Account Alerts
Of course, security is very important consideration when deciding whether you want a Chase Bank savings account. Chase savings account holders can sign up for Account Alerts, which let the Chase saving account holder know of any activities they wish to be alerted to. This feature provides additional peace of mind for those who wish to stay on top of any activities happening in their Chase savings accounts.
Chase savings Account Alerts can be sent to Chase Bank savings account holders via text or email—whichever method they prefer. And these alerts can be personalized to the Chase saving account holder’s preferences.
Account Alerts is a helpful Chase savings account bonus feature for more than just security. Things happen, and customers may be forced to dip into their Chase savings account, but this does not mean their financial goals go out the window.
In order to stay on track, Chase saving account holders can set up an Instant Action alert to let them know via text when their Chase Bank savings account balance has dipped below a certain amount. After receiving the alert, they can easily send a text back to make a transfer from their checking account.
Tremendous Access to a Wide Network of ATMs and Branches
With the Chase Bank savings account, Chase savings account holders have access to a widespread network of 16,000 ATMs and 5,200 branches.
This means that Chase saving account customers can easily find an ATM or a branch nearby if they need assistance. And if a person with Chase savings accounts is in an unfamiliar area, they can use their mobile device or Chase app to locate the nearest branch or ATM.
Additional Ways to Save on Fees on the Chase Bank Savings Account
As mentioned earlier there are ways to have the $5 monthly maintenance fee on your Chase Bank savings account waived. The one we mentioned was the monthly automatic transfer of $25 to your Chase savings account.
But there are other ways as well. You can have the monthly fee automatically waived if you are under 18 years old, if you maintain a minimum daily balance of $300 or more in your Chase saving account, or if it is linked to other select Chase banking accounts.
Chase Savings Accounts: Chase Plus Savings
The Chase Plus Savings account comes with the same basic features found in the regular Chase Bank savings account (the automatic savings program, account alerts, mobile banking, etc.) in addition to some more banking features.
A Higher Chase Savings Interest Rate Available with Chase Plus Savings
The biggest difference is in terms of the Chase savings interest rate that you are offered based on which Chase savings account you choose. The Chase savings account interest rate you receive is an important consideration when choosing your Chase Bank savings account.
The basic Chase savings interest rate applied to the regular Chase Savings account is 0.01 percent on all balances. There is no Chase savings account interest rate sliding scale for the basic Chase Savings account (unless you have more than one million dollars in your Chase Bank savings account, in which case you get a 0.06 percent interest rate.)
On the other hand, if you choose the Chase Plus savings account, this Chase savings account comes with Chase savings account interest rates that are termed “relationship rates.” These Chase savings interest rates are higher than those offered to the regular Chase Bank savings account, and they also operate on sliding scale based on the balance in your Chase saving account.
The Chase savings account interest rate for those who have the Chase Plus savings account differs depending on the Chase savings account holder’s balance. A person can make anywhere from 0.01 percent to 0.06 percent on balances ranging from one dollar to five million dollars with the Chase savings interest rate offered to Chase Plus savings account holders.
Of course, you will not make a significant amount of money off of these Chase savings account interest rates. These Chase savings interest rates that the bank charges you to borrow your money is nowhere near the amount of money they charge to loan it out to other customers, but it will provide some incentive to save and keep money in your Chase savings account.
The Chase savings interest rate on Chase savings account balances are compounded and credited monthly.
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Chase Plus Savings Fees & Minimum Deposit
This Chase savings account, the Chase Plus Savings account, requires a minimum balance of $100 to open.
This Chase Bank savings account also has a monthly maintenance fee of $20. The fee on this Chase saving account can be waived if you have a minimum daily balance of $15,000 or more or when linked to select Chase accounts.
Chase Savings Account Bonus: Get Paid to Open Chase Savings Accounts or Checking Accounts
If you need additional incentives to sign up for a Chase savings account, you may be interested in the Chase savings account bonus that is offered to new customers.
The Chase savings account bonus works as follows. If you open a Chase Bank savings account and deposit $10,000 or more, you receive a $150 coupon, and if you open a Chase checking account and set up direct deposit, you get a $200 coupon.
The Chase savings account bonus can work in a combined fashion as well. If you get a Chase checking account as well as a Chase savings account and set up the necessary transactions or minimum balances in the accounts, you receive a $300 coupon.
Barclays Online Savings Account: Overview
Barclays is a British multinational bank that offers a Barclays online savings account for American consumers. The interest rates offered on Barclays online savings are touted to be 12 times higher than the national average at 1.00 percent, making this a Barclays high-yield savings account as well.
It is not a surprise that Barclays savings account offers such a high interest rate. Online savings accounts usually come with a higher interest rate since there is money saved on the cost of maintaining physical branches.
The interest on balances in a Barclays high-yield savings account is compounded daily.
Barclays Online Savings account carries no monthly maintenance fees and requires no minimum balance to open the Barclays savings account. The Barclays US online savings account also comes with included features and tools to help you save your money.
In addition to providing a competitive interest rate, the Barclays US online savings account comes with secure online transfers to and from other banks, allowing Americans to put money toward their Barclays online savings account from other checking accounts they typically use.
Barclays high-yield savings accounts also offer direct deposit. If you wish to have specific funds automatically put into your Barclays US online savings account, that can easily be arranged. Barclays online savings also comes with 24/7 online access to your funds, meaning you can monitor your money and transfer funds to your Barclays savings account at all hours of the day and night.
The Barclays high-yield savings account also comes with the option to set savings goals to keep yourself working toward a specific balance in your Barclays online savings.
The Savings Assistant is a Barclays savings account tool that asks you to choose your goal (college, car, or a house), enter how much it costs, disclose how much you already have saved up either in your Barclays US online savings or elsewhere, and then estimate how much you can afford to contribute monthly to your Barclays online savings account.
After you plug these numbers into the Barclays online savings tool, you receive an estimate of how long it would take you to meet that savings goal based on the data provided. This is great way to tweak your numbers to see how much faster you can reach your financial goals by increasing the amount of money you put toward your Barclays savings account.
Benefits of the Barclays Online Savings Account
If you have a large sum of money, and you do not need to use it immediately, parking it in Barclays high-yield savings account will help you realize more interest than you would in a traditional savings account.
Because Barclays US only offers Barclays online savings options, like savings accounts and certificates of deposit, they can extend some of their savings toward consumers in the form of attractive interest rates.
You can deposit your funds into your Barclays online savings either electronically, by direct deposit, or by mailing in a check. You can withdraw funds from your Barclays savings account by transferring them to your external bank that you typically bank with.
Is Barclays Online Savings Insured by the United States Government?
The biggest concern for a lot of people when it comes to considering web-based banking options like the Barclays online savings account is whether their money is safe. Barclays is insured by the Federal Deposit Insurance Corporation.
You can see their status either by scrolling down on the Barclays US home page or by checking their status on the FDIC website (they are registered in the United States as Barclays Bank Delaware). So your Barclays high-yield savings provides the same level of protection you would get through other FDIC-insured savings accounts.
Chase Savings Account vs. Barclays Online Savings: Which Is Better?
When comparing the two, one thing is clear: these two accounts are meant for two different kinds of savers.
The Chase savings account comes with a monthly fee (that can be waived) and a lower interest rate.
But this is in exchange for access to a nationwide network of branches and ATMs, access to linked checking accounts, and services like a smartphone banking app as well as automated alerts. All of this comes at a price, but that price is for one main thing: easy access to your money.
While there are mechanisms in place to encourage you to keep saving (waiving the monthly fee for setting up automatic transfers to your Chase savings account), at the end of the day, you can access the money in your Chase saving account pretty much whenever you want. And you can easily transfer it to your Chase checking account where you can spend it using your debit card.
With the Barclays saving account, there is no monthly fee and a higher interest rate, but you are limited in how quickly you can access your money. Moreover, you are also limited in how often you can make withdrawals from your Barclays online savings.
If you scroll down to read the fine print on the Barclays online savings account page, you can read that you are only authorized up to six withdrawals per statement cycle. That number does include preauthorized, automatic, and telephone transfers from your Barclays high-yield savings.
This is not necessarily a problem. If you do not need to use that money, these slight obstructions may actually work in your favor and encourage you to keep your lump sum stashed in your Barclays online savings to earn money through interest.
However, if you are somebody who may need to dip into your savings time and again, then a Barclays high-yield savings account may not be the best fit.
Chase Savings Account vs. Barclays Online Savings: The Verdict?
If you are someone who wants easy interaction between your checking and savings account and feel comfortable with easy access to the money in your savings, consider the Chase savings account.
If you are looking for a safe place to put your money where it can accumulate a relatively higher amount of interest, consider the Barclays online savings account.
Be Smart with Your Money and Understand Your Savings Needs
A large part of choosing the best savings account is having a solid understanding of your savings needs.
It is easy to feel overly ambitious about saving when you start out, but if you make an unrealistic estimation of how often you will be withdrawing money, you will quickly grow frustrated with the limitations Barclays online savings option.
On the other hand, if you are someone who does not need to touch the money at all, you will become exasperated at all the unnecessary charges and the miniscule interest rate offered by the Chase savings account. Assess your needs and choose your savings account accordingly.
AdvisoryHQ (AHQ) Disclaimer: Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info. Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.