Tuesday, 12 November 2019

U.S. Bank vs. Chase: Which is Better?

U.S. Bank vs. Chase: Which is Better?
13 Sep
5:18

Choosing the right bank for you means balancing different wants and needs. Folks who are intent on earning the highest interest rates possible might want to look toward online banks or credit unions, which tend to offer higher rates. On the other hand, big national banks like U.S. Bank and Chase offer more extensive services and a face-to-face banking experience.

When it comes to U.S. Bank vs. Chase, there’s no one right answer. However, by examining the most important factors — reputation, location, rates, account options and fees — we can help you decide whether U.S. Bank or Chase Bank will help you make the most of your money.

U.S. Bank vs. Chase: A brief overview

U.S. Bank and Chase are both large national banks with longstanding reputations; according to the Federal Reserve, Chase is the largest bank in the country, and U.S. Bank is the fifth largest.

In terms of accessibility, Chase has nearly twice as many branch locations as U.S. Bank and almost four times as many ATM locations. Both banks have middle-of-the-line customer reviews: U.S. Bank is ranked two-and-a-half stars out of five on DepositAccounts, another LendingTree subsidiary, while Chase has three stars out of five.

Finally, when it comes to comparing U.S. Bank vs. Chase rates and fees, the two banks are similar, though U.S. Bank tends to charge slightly lower fees.

U.S. Bank vs. Chase: How they compare on rates

Neither U.S. Bank nor Chase presents a clear advantage when it comes to rates. They have the same rates on their basic savings account, and their CD rates fluctuate, with the better deal depending on which CD product you’re after.

When compared to rates offered by online banks, both U.S. Bank and Chase fall far behind in this category.

  U.S. Bank Chase National Average***
Checking* None None 0.198% APY
Savings** 0.01% APY 0.01% APY 0.281% APY
1-year CD 0.10% APY 0.02% APY on balances of $0.01 to $99,999.99

0.05% APY on balances of $100,000 or higher

1.324% APY
5-year CD 0.75% APY 1.40% APY on balances of $0.01 to $9,999.99

1.50% APY on balances of $10,000 to $99,999.99

1.55% APY on balances of $100,000 or higher

2.078% APY

*U.S. Bank Easy Checking Account and Chase Total Checking Account
**U.S. Bank Standard Savings Account and Chase Savings Account
***National bank averages are accurate as of the publish date of this article

U.S. Bank vs. Chase: What account options are available?

You’ll find most of the same account options at both U.S. Bank and Chase. Both banks offer non-interest bearing checking accounts and basic savings accounts, as well as a range of other checking and savings options, including premium accounts that earn higher rates and student accounts. U.S. Bank offers five different checking account options to choose from, while Chase has three choices.

You’ll also find a range of CD options at both banks, starting at 1-month CDs and including several CD specials with higher rates. However, U.S. Bank only offers up to 60-month CDs while Chase offers up to 120-month CDs. As of the date of publishing, Chase does have a $1,000 minimum opening deposit requirement on CDs, whereas U.S. Bank only requires $500.

The one major difference in product offerings is money market accounts, which are an option at U.S. Bank but not at Chase.

  U.S. Bank Chase

Checking account

Savings account

Certificates of deposit

Money market account

U.S. Bank vs. Chase: How they stack up on fees

The most important factor to consider when choosing a checking or savings account, according to Ken Tumin, founder of LendingTree-owed company DepositAccounts.com, is fees, and how easy it is to avoid them. He advised considering not only your present situation, but the future as well. “Sometimes you can afford a fee waiver with a direct deposit, but what if you lose your job?” he said.

Both U.S. Bank and Chase charge monthly service fees on their standard checking and savings accounts that can be waived. While U.S. Bank’s fees are slightly lower than Chase’s, you might have an easier time getting the monthly fees waived on Chase’s accounts (more on that below).

Another fee that Tumin recommends paying attention to is ATM fees. While both banks charge the same fee for out-of-network ATMs within the U.S., Chase charges more for ATM usage outside of the U.S. However, Tumin explains that it’s important to consider how big your bank’s ATM network is, because in-network ATMs are free. Chase has a much larger ATM network than U.S. Bank.

  U.S. Bank Chase
Standard checking account $6.95 monthly fee, waivable $12 monthly fee, waivable
Standard savings account $4 monthly fee, waivable $5 monthly fee, waivable
ATM fee $0 at U.S. Bank ATMs, $2.50 at non-U.S. Bank ATMs $0 at Chase Bank ATMs

$2.50 for inquiries, transfers, and withdrawals at non-Chase Bank ATMs within the U.S.

$5 for withdrawals and $2.50 for transfers and inquiries outside of the U.S.

Overdraft fee* $36 for each item of $5.01 or more

$0 for items of $5.00 or less

$34 for each item, not charged if item is $5 or less or if your balance at the end of the business day is overdrawn by $5 or less

*Rates apply to U.S. Bank Easy Checking and Chase Total Checking

Requirements for waiving basic checking account fees at both banks

To get the basic checking account fees waived at either bank, you must have either a certain amount of money direct deposited into your account each month or maintain a minimum balance. U.S. Bank also waives checking account monthly fees if you’re 65 years of age or older. The table below explains the exact requirements.

U.S. Bank checking account fee waiver Chase checking account fee waiver
  • Receive monthly direct deposits totaling at least $1,000, OR

  • Keep an average daily balance of at least $1,500, OR

  • Be at least 65 years of age

  • Receive monthly direct deposits totaling at least $500, OR

  • Keep an average daily balance of at least $1,500, OR

  • Keep an average daily balance of at least $5,000 across your checking and other linked Chase accounts, such as deposit or investment accounts

Requirements for waiving basic savings account fees at both banks

It’s also possible to have the monthly service fees on each bank’s basic savings account waived by maintaining a minimum balance. Account holders under age 18 have their monthly fees waived automatically at both banks. Each bank also offers a third option for getting your fee waived.

U.S. Bank savings account fee waiver Chase savings account fee waiver
  • Keep a $300 minimum daily balance, OR

  • Keep a $1,000 minimum monthly balance, OR

  • Be under 18 years of age

  • Keep a $300 minimum daily balance, OR

  • Set up at least $25 in monthly autosave or repeating automatic transfers into your savings account from your Chase checking account, OR

  • Have a linked Chase College Checking, Chase Better Banking Checking, Chase Premier Checking, Chase Premier Plus Checking, Chase Sapphire Checking, or Chase Private Client Checking account, OR

  • Be under 18 years of age

When to choose U.S. Bank

  • You’re not sure if you can consistently meet direct deposit or daily balance requirements.
  • You use international ATMs.
  • You’re 65 years of age or older.
  • You want to open a CD with less than $1,000.
  • You want a money market account.

If you’re not sure that you can meet any monthly direct deposit or daily balance requirements consistently — for example, if you have an unstable income or move money around frequently — you’ll probably end up paying monthly maintenance fees at least occasionally, regardless of which bank you choose. In this case, it’s best to go with U.S. Bank, as its monthly fees are slightly lower. This includes ATM fees for international travelers because, while both banks charge the same fee domestically, Chase will charge a higher ATM fee while you’re abroad.

Older customers might also want to go with U.S. Bank because fees are waived if you’re 65 or older.

When to choose Chase

  • You can consistently meet requirements to waive the monthly fee.
  • You want a bigger ATM network.
  • You travel often and need to access branch locations.
  • You already have investment or deposit accounts with Chase.
  • You’re looking for a 120-month CD.

If you think you can consistently meet requirements to waive monthly account fees, Chase would be a better option; its requirements are generally a bit easier to meet on both checking and savings accounts. If you already have deposit or investment accounts with Chase, your balance across all accounts can help you get monthly fees waived as well.

While Chase does charge more for international ATM usage, it also has far more branch locations and free in-network ATMs, so that’s worth considering. Frequent travelers who prefer having access to branch locations might want to consider this as well, as Chase’s footprint is almost twice the size of U.S. Bank’s, and the bank has a larger international presence.

U.S. Bank vs. Chase: Which is better?

Chase’s advantage is its large national and international footprint and, according to customer reviews, its slightly better customer service. However, U.S. Bank is still one of the country’s biggest banks, and it offers slightly lower fees on basic accounts.

Neither U.S. Bank or Chase come out on top in all categories. Assess your personal situation and determine which bank account will result in lower fees and higher rates. As with many financial decisions, the answer depends on your needs.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Elizabeth Aldrich

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Source: https://www.magnifymoney.com/blog/banking/us-bank-vs-chase/

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