So you want to avoid the Chase Total Checking account fee?
Since opening up a Capital One 360 Savings account, I've moved most of my cash from my Chase Total Checking Account to the Capital One Savings account. Although the Capital One savings account currently pays a measly 0.75% a year, it is still better than the zero interest from my Chase account.
Nowadays especially after the 2008-2010 financial crisis, it is almost impossible to find a "Free" checking account that doesn't have some kind of stipulation. For example, the account might say maintain X amount for the first three months of opening an account or average balance of X to avoid X fee. Whatever the case may be, "Free" has a new definition. For banks, it means, free only if you meet certain conditions.
For the Chase Checking account to avoid the monthly fees here are those conditions.
- 1) At least one direct deposit of $500 or more.
- 2) or, maintain a minimum daily balance of $1,500 or more in your checking account.
- 3) or, maintain an average balance of $5,000 or more in a combination of deposit and/or investment accounts with Chase. (These accounts must be linked to your checking account.)
- 4) or, pay $25 or more in qualifying account fees (not including monthly account fee).
What is the best way to meet those conditions?
If you work a day job or have a steady stream of income, the easiest way would be to set up a direct deposit. I've also heard that a ACH in excess of $500 qualifies for a direct deposit. If this is the case, in theory you would be able to use something like Paypal to send money to your checking account.
Another easy way to avoid the Chase fees is through maintaining a daily average balance of at least $1,500. This is the issue I was dealing with and what prompted me to review the actual conditions. Most of my cash was being sent to the Capital One savings account. This would be an easy solution for those who have the ability to maintain such a balance. Similarly with the $5,000 average balance, the solution is a capital issue.
Whatever we do, the one condition we want to avoid is paying the excess $25.