What is chase secure banking -
What Is a Secured Checking Account?
Secured checking accounts may be used to help rebuild credit.
In addition to the financial difficulties of paying off overdue loans, bad credit can make it difficult for a borrower to develop any type of positive credit history. Once deemed a credit risk, many lenders and banks avoid transactions with customers with a history of bad credit. Secured financial services such as checking accounts – sometimes called second-chance accounts – allow customers with poor credit access to a checking account.
Secured Checking Basics
Where traditional checking accounts give customers access to all the funds in their account, a secured checking account requires a portion of the money used to open it to be held in reserve. Similar to a security deposit when renting a property, the bank holds these funds in a separate savings account on the chance the account holder receives an overdraft fee or other penalty for a returned check. If the account holder doesn't repay the fee to the bank, it holds a portion of the security deposit when the account is closed.
Although security deposits vary by bank and may also vary by the account holder's credit risk, many banks require secured checking account holders to contribute $200 as a security deposit. These funds cannot be directly accessed by the account holder until the account matures into a traditional checking account or the account is closed. For example, if a customer initially places $500 into a secured checking account with a $200 deposit, his checking balance will only reflect $300. After demonstrating proper checking history, the $200 will be refunded into the checking account.
Secured Checking vs. Overdraft Protection
Secured checking accounts often don't come with overdraft protection that's common among traditional checking accounts. Because of this, if an account holder writes a check that draws on funds not present in his account, the bank returns the check to the payee, as secured deposits aren't used to cover overdrafts. If the account holder closes the checking account with a negative balance caused by overdraft fees, the bank uses the secured balance to pay outstanding fees and other penalties.
Customers who must open a secured checking account rather than a traditional one should quickly begin repairing their credit in order to receive full checking privileges and have access to all the funds in their account. Customers should repay any outstanding balances and fees on previously held checking accounts to begin to clear their debt. Once all checking accounts have been adequately closed at a zero balance, the account holder should request the bank notify ChexSystems with information about the cleared debt. Account holders should request a free report from ChexSystems to verify that outstanding checking account debts have been removed from their record.
1Webster Premier Checking: Minimum opening deposit of $500 is required. You can avoid a $21.95 monthly maintenance fee by keeping $20,000 in combined monthly average checking, money market, and savings balances or $50,000 by adding CDs, home equity, and installment loan balances (excludes mortgages, refinanced student loans and savings secured loans) as of the end of your statement period; and monthly average investment balances (excluding the last day of the month). Fees may reduce earnings. Premier Checking is a tiered rate product. The tiers are $0 to $2,499.99, $2,500 to $9,999.99, $10,000 to $24,999.99, $25,000 to $49,999.99, and $50,000 and over. The APY (Annual Percentage Yield) for Premier Checking as of 06/01/2021 is 0.01% for balances of $0.01 to $49,999.99 and 0.01% for balances $50,000.00 and over, and is subject to change at any time. Tax reporting may apply. Product features are subject to change at any time.
Premier Checking ATM Benefits: Webster will not charge any fees for checking withdrawals at non-Webster ATMs. If you are charged a fee by another bank for checking withdrawals at its ATM, we will rebate the fee.
2Webster Value Checking: Minimum opening deposit of $50 is required. You can avoid the $11.95 monthly service fee when you meet ONE of the following during your monthly statement cycle: a) maintain a monthly average balance of at least $1,000; b) are age 65 or older and have at least one direct deposit; OR c) have cumulative direct deposits of $500 or more each month. Delivery of statements electronically is free; those accounts not enrolled in Statement eDelivery will receive a $2 monthly paper statement fee. This fee is waived for account holders age 65 and older or 18 and younger.
3WebsterOne® Relationship Checking: Minimum opening deposit of $50 is required. You can avoid a $16.95 (or $14.95 with direct deposit) monthly maintenance fee by keeping $4,000 in combined average checking, money market and savings balances during your monthly statement period or $20,000 adding CD, home equity and installment loan balances (excludes mortgages, refinanced student loans and savings secured loans) as of the end of your statement period. Rates and fees may vary by state and region; fees may reduce earnings. The APY (Annual Percentage Yield) for WebsterOne Relationship Checking is subject to change at any time.
4Webster Student Checking: Minimum opening deposit of $50 is required. No monthly service charge for 5 years after opening or switching to this account. After 5 years, it will convert to Webster Value Checking. A valid student ID is required; if it is not provided within 60 days of account opening account will convert to Webster Value Checking. You must be at least 18 years old to open an individual checking account at Webster. A student at least 15 years old may open a joint Student Checking account with another individual who is at least 18 years old. Each joint owner has full control over the account and is responsible for the activity of the other owner, including the activity of a minor who is a joint owner. See your Deposit Account Disclosures for more details on Joint Ownership Accounts.
Student Checking ATM Benefits: Per statement cycle, Webster will not charge for up to 4 ATM fees associated with using non-Webster ATMs. If you are charged a fee by another bank for using its ATM, we will rebate 1 fee per statement cycle. Product features are subject to change at any time. Insufficient Available Funds Fees: 1 fee will be rebated per academic year (September to August).
5Opportunity Checking: Minimum opening deposit of $50 is required. The monthly service charge will be $16.95 (or $11.95 with direct deposit). Visa debit card purchases using the "credit" option are limited to $250 per calendar day. Other miscellaneous fees may apply. Delivery of statements electronically is free; those accounts not enrolled in Statement eDelivery will receive a $2 monthly paper statement fee. This fee is waived for account holders age 65 and older or 18 and younger.
*Special Loan Discounts – Automatic Loan Payment Offer: Customers with any personal Webster checking account are eligible to receive an automatic payment rate discount on Home Equity Loans and Lines, Mortgages and Personal Loans. To receive the rate discount, an automatic payment deduction (ACH) is required from your Webster Bank personal checking account. This discount does not apply to Government Assisted Mortgages. Mortgages over $1,000,000 are not eligible for the discount.
All loans and lines are subject to the credit approval process. Product features, APY and/or offers are subject to change without notice and may be withdrawn at any time. Rates and fees may vary by state and region. Other restrictions may apply. Cannot be combined with any other offers from Webster or its affiliates. See a banker for details. Tax reporting may apply. Other miscellaneous fees may apply and reduce earnings.
**Delivery of statements electronically is free; accounts not enrolled in paperless statements will receive a $2 monthly paper statement fee. This fee is waived for account holders 8 and younger or 65+.
JPMorgan Chase & Co. has launched a new, low-cost checking account for consumers who may have had trouble getting or keeping a bank account or for those new to banking.
Called Chase Secure Banking, the account costs $4.95 a month and comes with many traditional account services such as a debit card, access to fee-free ATMs and the ability to make payments electronically.
What the account doesn't have is paper checks so customers can't overdraw their accounts, something that has gotten some of these consumers into trouble with banks in the past.
"Our mission, and we take it seriously, is to help people to make the most of their money so they can make the most of their lives," said Thasunda Duckett, CEO of Chase Consumer Banking who was in Columbus Thursday.
A 2017 survey by the Federal Deposit Insurance Corp. found that 6.5 percent of households — a total of 20.5 million adults and children — lacked a checking or banking account.
Another 18.7 percent of households — 64.3 million adults and children — had a checking or savings account, but also obtained financial products and services outside the banking system.
Studies have also shown about 40 percent of adults don't have the savings to cover an emergency $400 expense.
The new Chase account replaces Chase Liquid, a reloadable prepaid card. Because the new account comes with a debit card, it allows consumers to make electronic payments or do things such as rent a car.
Chase is betting that consumers who use Secure Banking will gravitate to more profitable services down the road with the bank, said Greg McBride, Bankrate.com's chief financial analyst.
Customers eventually need access to traditional banking services if they want to get a low-cost car loan, a credit card or a mortgage, he said.
"It can attract consumers that either don't have a banking relationship because of previous overdraft issues or never had a traditional bank account," he said of the new Chase accounts. "Banks have come to the recognition that they have either have to innovate on their own to attract unbanked consumers or have the regulators force them."
Results have been mixed with banks that have tried similar accounts, he said.
Other local banks and credit unions offer accounts, sometimes called second-chance or fresh-start accounts, meant to help consumers who have been turned down for a checking account or had trouble establishing one. Huntington Bancshares, the top bank in the region along with Chase in terms of total deposits, has offered fee-free checking accounts that give consumers 24 hours to cover an overdraft before a fee is imposed.
Separately, Chase has announced plans to expand its retail offices into nine U.S. markets in 2019 while continuing to open new locations in Washington, D.C., Philadelphia and Boston.
Chase, central Ohio's largest private employer with about 20,000 workers, expects to open 90 new offices this year and hire 700 employees, part of a plan announced last year to 400 branches and hire 3,000 workers over five years.
Duckett said no significant changes are planned for central Ohio where Chase already has 70 branches other than regular reviews to ensure the offices are operating effectively at their current locations.