PayPal offers a variety of uses and has become a large part of the financial lives of more than 300 million people. The fact that it operates globally makes it a valuable tool for both purchasing goods and sending funds. PayPal users need bank accounts to store their funds, and choosing the right bank can make using PayPal a much easier experience.
Which is the Best Bank account for PayPal? A Chase Checking Account is the best bank account for PayPal because it offers the ability to easily send and receive money from anywhere in the world. Additionally, Chase offers zero foreign transaction fees and no monthly maintenance fees.
Chase is among the biggest names when it comes to banking in the US. While some might argue about its various fees, Chase’s makes up for it in terms of accessibility, convenience and how they well embrace online banking.
They also have a variety of financial products that prove beneficial to users.
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Why Chase Might be the Best Bank for PayPal
As mentioned, it is worth having a reliable bank if you are a frequent user of PayPal. PayPal is a useful tool, but it is not safe to leave money in your PayPal account because it is not FDIC insured. So, if anything happened to PayPal, you can lose your funds. All banks are FDIC insured, so even in an event such as bankruptcy, clients can still get their money back.
Now let’s analyze the various features that make Chase the right Choice for a PayPal user.
Accessibility
Chase bank is among the oldest banks in America, meaning it has had time to spread its reach across the country. Chase has more than 5000 branches and 16,850 ATMs in 38 states, making it quite accessible to people across the country. The bank is also planning to increase its physical network such that it can reach more customers.
Reliable Online and Mobile Banking
Most traditional banks are not too quick to embrace online and mobile banking, but Chase is different. The bank offers one of the best online banking experiences and can even compete with those offered by online-only banks.
The Chase website is quite easy to use, just like its mobile app. Furthermore, it enables users to pull up all of their accounts at once when they log in. In addition, users can transfer money between accounts, wire money to others, or even pay bills all from their phones. Since Paypal is also online, it makes it easy to make transfers between the two directly from your phone or computer.
Fees
In terms of fees, Chase is like most banks whereby there are various account fees in both checking and savings accounts like;
- Maintenance fees for both savings and checking
- ATM fees
- Overdraft fees
- Penalties and withdrawal limits
For its basic checking account, Chase charges $12 monthly except for students who are charged $6. Their savings account charges users $5 per month. However, here are ways you can have both fees waived.
- First, your total checking account fees can be waived if you have at least $1500 in the account daily.
- You can waive your monthly fee if you have more than $500 in direct deposits monthly.
- You can also avoid paying your monthly fee by having $5000 or more in investments or deposits across different Chase bank accounts.
For Premier Plus Checking account, clients have to pay $25 in monthly fees but can have it waived by maintaining a balance of $15,000 daily. Chase charges $34 in overdraft fees, which is standard for most banks, but it is only charged when you overdraft by more than $5.
Rewards
Chase bank offers some of the best and flexible rewards among banks. First, new customers are rewarded with bonuses for opening an account. Then, their credit cards are very rewarding to users. Chase credit cards earn 5% cash back for up to $1500 on combined purchases. Users can get cash backs for purchasing travel, shopping, and even dining using the Chase credit card.
Rates
Chase stands at 0.01 APY, which is the lowest you can earn in terms of interest rates. It’s understandable because Chase other major banks can’t compete with online banks or credit unions in terms of rates. However, you can bump yourself up to a rate of 0.11% with the Chase Premier savings account
A Major Tip for Finding the Best Bank for You
Searching for a new bank can be an overwhelming process since there are currently many options to choose from. One of the most important things about choosing your bank is to feel comfortable keeping them in charge of your funds. If you don’t feel comfortable with a specific bank, they might not be the right choice.
It helps to visit a branch and speak to someone since you can assess how they do things. This might not be possible for online banks due to no branches.
An Honorable Mention
Chase is a good option for PayPal when talking about traditional banks.
However, for a millennial who might not see the need for a physical branch, Chime might also be a worthy solution.
The only challenge with online banks is that you cannot visit their branches when you have queries and might be at the mercy of online customer support.
Other than that, online banks like Chime offer some competition to normal banks, especially because they charge almost no fees.
Final Thoughts
Choosing the right bank for PayPal can involve many factors, but the most important one should be compatibility. Chase makes it easy to transfer money to and from PayPal. Still, some other options might experience difficulties in this regard.
Thus, users need to confirm that the bank they choose accepts PayPal and, from there, decide on what best suits their needs. Chase is a great choice, but the decision ultimately comes down to a user’s preferences and needs.
So, analyze what you need from a bank and then find the choice that fits the bill. For example, If you don’t care about having physical branches, then online banks might be an option to consider but if you like rewards, Chase is your choice.