Chase Bank IRA Accounts Review
JP Morgan Chase Bank IRA review: CD IRAs, Roth IRA, Traditional IRA, Rollover, Money Market IRA. Chase Bank IRA fees, rates, APY/APR, promotion offer for 2017.
Is Chase Bank IRA good and safe way to invest?
Overview of Opening an IRA with Chase Bank
An Individual Retirement Account offers the ability to save a fixed amount each year, with certain tax advantages. Chase Bank in particular offers a selection of IRA's that are FDIC insured. This article will analyze these offerings and compare them to what's available at some of Chase's rivals.
Chase IRA IRA Types
Many people in the U.S. use Chase Bank for regular checking and savings accounts. What they may not realize is that the financial institution also offers a selection of Individual Retirement Accounts. An IRA can be opened in either Roth or Traditional format.
The Traditional IRA is a good choice for retirement savers who think they will be in a lower tax bracket in the future, because funds in the account aren't taxed until they are withdrawn. On the other hand, the Roth is the better choice for people who are in a lower tax bracket now, as contributions are taxed before they are deposited into the retirement account.
Chase also allows for IRA transfers and rollovers. An old employer's 401(k) plan can be rolled over into a Chase IRA. It will be structured either as a Traditional or Roth for tax purposes. IRS regulations allow one rollover per year. An existing IRA at another financial institution can also be transferred to Chase. An unlimited number of transfers can be completed under government regulations.
Although Chase doesn't charge anything to transfer an IRA or close one, the bank does impose a $30 annual fee. However, there are several methods to avoid the charge. Simply having a Chase checking account will waive the fee, as will making an annual contribution of $1,000 or more. If the balance of the IRA is above $10,000, the annual fee is automatically waived.
Chase IRA Investment Options
A Chase IRA can be invested in either a CD or a money market deposit account. Rates on these products can vary according to a variety of factors, such as account size, length of a CD's term, state of residence, and whether the account holder has a checking account with the bank. Currently, the money market account pays 0.01%.
A 12-month certificate of deposit opened in Oklahoma with a $1,000 balance and without a checking account earns the same paltry 0.01%. By comparison, a Chase IRA CD opened in upstate New York with a $5,000 balance earns 0.35% annually on a 5-year term. The account holder must also have a Chase checking account to earn the rate.
Despite the low rates Chase has for retirement accounts, balances are protected by the FDIC. The government insures all deposits across both retirement and non-retirement accounts, up to a maximum of $250,000. This limit is per customer per bank, not per account. Because deposits are stable in value and protected by the FDIC, they are an ideal choice for retirement savers who are concerned about volatility and cannot afford to see their investments decline in value.
Strangely, Chase does not provide a lot of information about its IRA offerings, either online or inside branch locations. The bank does, however, have a retirement hotline that offers IRA details. The help desk can be reached at 1-855-800-8053 anytime between 8 am and 8 pm, EST, during the week, and Saturdays from 9 am to 4 pm.
Besides the toll-free IRA customer service line, the bank also has retirement resources on its website that can be accessed without logging in. There are articles that cover a variety of topics, such as including Social Security benefits in a retirement plan, savings strategies, and handing down assets to beneficiaries. There is also an IRA calculator that leads users step-by-step in analyzing the probability that they will have enough of a nest egg to retire on.
Compare Chase IRA vs TD Ameritrade, Discover, and Synchrony
Chase's rates on IRA products are pretty low by industry standards. Synchrony Bank pays 1.45% on a 2-year IRA CD. A certificate of deposit
inside a Discover Bank IRA yields 1.3% with a 24-month term. An Ally Bank savings IRA earns 1.0% per year, while Bank of America pays 0.15%
or lower for its IRA deposits.
The educational resources available on the Chase website for retirement products are rather limited compared to what is available from several
brokers. TD Ameritrade and Scottrade
all offer more instructional materials and IRA calculators. Other banks are on the same
level as Chase in terms of educational resources.
Although Chase attracts a lot of deposit customers and is known for its sizeable credit card collection, it seems to have a paltry IRA
selection. Chase's IRA deposit rates are below what most other banks offer. Investors who would like to achieve higher returns could open a brokerage IRA which would provide access to both securities and financial advice.
Article was updated on 1/25/2017.