What Chase Bank Is and How It Works

Chase is the consumer banking division of JPMorgan Chase & Co., the largest bank by assets in the United States

Chase operates as a retail bank where individuals and small businesses open checking accounts, savings accounts, credit cards, and loans. You interact with Chase through its branches (about 4,700 across the country), its website, its mobile app, and its customer service phone lines. Chase is a for-profit company owned by shareholders, not a government agency or nonprofit — it makes money by charging fees on accounts, earning interest on loans, and collecting interchange fees when you use a Chase credit card.

When you deposit money into a Chase checking account, that money is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type per depositor. This means if Chase fails, the FDIC will reimburse you. Chase does not decide whether your deposit is safe — the FDIC does. Chase is regulated by the Office of the Comptroller of the Currency (OCC), which is part of the U.S. Treasury Department, and by the Federal Reserve.

Key Takeaways

• Chase is a retail bank where you can open checking and savings accounts, explore for credit cards and loans, and manage money through branches or online.
• Money you deposit in a Chase account is insured by the FDIC up to $250,000 per account type, regardless of what happens to the bank.
• Chase makes money through monthly account fees, overdraft fees, interest on loans, and credit card interchange fees — not from selling your data.
• Chase is owned by JPMorgan Chase & Co., a publicly traded company, and is regulated by the OCC and the Federal Reserve, not by state banking authorities alone.
• Chase offers different account types with different fee structures, so the cost of banking with Chase depends on which products you choose and how you use them.

How Chase makes money from your account

Chase charges a monthly maintenance fee on most checking accounts — the amount varies by account type, usually between $0 and $15 per month. You can often waive this fee by maintaining a minimum balance, setting up direct deposit, or using Chase's online banking exclusively. Chase also charges overdraft fees when you spend more than your balance, typically $35 per overdraft transaction.

On savings accounts, Chase pays you interest — a small percentage of your balance each month — but the rate is usually lower than what online-only banks offer. Chase makes money on the difference between what it pays you and what it charges borrowers for loans and mortgages. When you use a Chase credit card, the merchant pays Chase a fee (called interchange), and Chase keeps part of that fee.

Chase does not sell your personal financial data to advertisers or data brokers. Your account information is protected by federal banking privacy laws, and Chase's privacy policy restricts how it can use your information internally.

Chase checking and savings accounts

Chase offers several checking account types: Chase Total Checking (the basic option), Chase Premier Plus Checking (requires higher balance), and Chase Sapphire Checking (linked to investment products). Each has a different monthly fee and different ways to waive it. A Chase savings account earns interest, but the rate changes based on Federal Reserve decisions and market conditions.

When you open an account, Chase will ask for your Social Security number, government-issued ID, and proof of address. This is required by federal law (the Bank Secrecy Act) to prevent money laundering and fraud. Chase will also run a check through ChexSystems, a banking history database, to see if you have had problems with other banks.

Chase credit cards and loans

Chase issues credit cards under its own brand and under co-branded partnerships (like United Airlines or Disney). Each card has an annual fee (which may be $0), an interest rate (called APR), and rewards like cash back or travel points. You do not have to carry a balance or pay interest — if you pay your full statement balance by the due date each month, you pay nothing to Chase except the annual fee if there is one.

Chase also offers personal loans, auto loans, and mortgages. The interest rate you receive depends on your credit score, income, and debt-to-income ratio. Chase will pull your credit report from one or more of the three major credit bureaus (Equifax, Experian, TransUnion) when you explore.

How Chase differs from online-only banks

Chase has physical branches where you can deposit checks, withdraw cash, and speak to a banker in person. Online-only banks like Ally or Marcus have no branches — you deposit checks by photographing them with your phone and withdraw cash only at ATMs. This convenience costs money: Chase's savings account interest rates are typically lower than online banks' rates because Chase maintains branches and pays branch staff.

Chase also offers investment services through its Chase Investment Services division, though it is not a brokerage firm like Fidelity or Charles Schwab. If you want to buy stocks or mutual funds, you would open a separate investment account, not a checking account.

What happens if Chase goes out of business

Chase is too large to fail without federal intervention — it is one of the "systemically important" banks that the Federal Reserve monitors closely. If Chase were to fail, the FDIC would either arrange for another bank to buy Chase's deposits and branches, or it would reimburse depositors up to $250,000 per account type. This has not happened to a major bank since 2008.

Your deposits are protected separately by account type: a Chase checking account and a Chase savings account are each insured up to $250,000. If you have $300,000 in a Chase checking account, only $250,000 is insured. If you have $300,000 split between a checking account and a savings account, both are fully insured.

Chase's relationship to JPMorgan Chase & Co.

Chase is the consumer banking brand of JPMorgan Chase & Co., which also owns JPMorgan (the investment banking and wealth management division) and other financial services. JPMorgan Chase is a publicly traded company, meaning anyone can buy shares of stock in it. The company is run by a CEO and a board of directors elected by shareholders.

When you see news about "JPMorgan Chase," it usually refers to the whole company. When you see "Chase Bank" or just "Chase," it refers to the consumer banking division. The two are the same legal entity, but "Chase" is the name you see on your debit card and in your local branch.

Frequently Asked Questions

Is my money safe in a Chase account?

Your deposits are insured by the FDIC up to $250,000 per account type, so yes. This insurance is separate from Chase's financial health — even if Chase failed, the FDIC would reimburse you. Chase is also regulated by the Federal Reserve and the OCC, which monitor its lending and risk practices.

Does Chase sell my information to other companies?

Chase does not sell your personal financial data to advertisers or data brokers. Federal banking privacy laws restrict how banks can use customer information. Chase may share information with affiliated companies (like JPMorgan's investment division) for marketing purposes, but you can opt out of this sharing by contacting Chase.

Why does Chase charge overdraft fees?

Overdraft fees are how Chase covers the cost of lending you money when you spend more than your balance. When you overdraft, Chase is extending you a short-term loan at a very high effective interest rate. You can avoid overdraft fees by linking a savings account to your checking account for overdraft protection, or by declining overdraft coverage entirely.

Can I use Chase ATMs outside the United States?

Chase has no branches outside the U.S., but you can withdraw cash from ATMs in other countries. Chase charges a foreign transaction fee (usually 1% to 3% of the amount) and the ATM operator may charge an additional fee. Some Chase credit cards waive foreign transaction fees, so check your card's terms.

How do I know if a Chase website or app is real?

Go directly to chase.com in your browser rather than clicking a link in an email or text message. Scammers create fake Chase websites to steal login information. Chase will never ask for your password, Social Security number, or PIN in an email or text. If you are unsure, call the number on the back of your Chase card.