Services Provided by Chase: Financial System Essay

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Banks are an indispensable part of any financial system since they provide services to citizens and businesses which fuel the economy and stimulate its growth. Commercial banks function by serving depositors by accepting their funds and borrowers by providing them with required sums. There is a large variety of commercial banks of different sizes, both local and international ones, which operate in the United States. Chase bank is one of the largest financial institutions in the country and offers several services utilized by its customers. It is interesting to analyze the most popular of them and see the rate which Chase offers on its certificate of deposit accounts.

As mentioned earlier, Chase provides numerous services to its clients; one of them is the checking account, also called a demand deposit account. Checking accounts are considered by banks to be transaction accounts which means that the financial institution treats them as a source of funds until the client decides to withdraw their money (Madura, 2021). Essentially, banks utilize the funds deposited by their customer to loan them to other clients. Chase offers several checking-account options which have different features, including “Chase Total Checking,” which provides additional overdraft, and “Chase Secure Banking,” which does not have an overdraft service but requires only a small service fee (“Chase checking,” n.d.). Additionally, Chase’s clients can choose checking accounts designed specifically for certain individuals; for instance, there are parent-owned accounts for children. The fact that Chase has several possible checking accounts lets clients find the one which would be most suitable for them.

Another service offered by Chase is savings accounts which are extremely popular among its clients who wish to not only keep their funds secure but also earn interest on them. The savings account requires only a small deposit and can be linked to the checking account, but unlike the latter, it does not imply the use of a debit card (Madura, 2021). As a result, many people find it convenient to get both checking and savings accounts in order to manage their funds better. Chase offers only two types of savings accounts, namely, “Chase Savings” and “Chase Premier Savings,” the former has an interest rate of 0,01% while the latter allows to earn up to 0,05% (“Chase savings,” n.d.). Overall, clients of Chase who choose the bank’s savings account can benefit significantly from this option only if they deposit a large sum of several million dollars.

Credit cards are another popular option for clients of all banks, including Chase, and the service which millions of people utilize on a daily basis. Credit cards constitute a form of consumer loans, the terms of which depend on the client’s credit history, as well as their income (Madura, 2021). If the holder fails to pay off their balance, the bank may charge them interest. Chase has an extensive assortment of credit cards which are suitable for different purposes. For instance, there are “Business Cards,” offering substantial cash back rewards, “Travel Cards,” which multiply bonus points (“Credit cards,” n.d.). Unlike debit cards which constitute a source of funds for banks, credit cards reflect an asset for Chase since it grants money to the client and can earn interest. Nevertheless, credit cards from Chase are also beneficial for consumers because they do not intend paying large interest rates and have numerous rewards and bonuses.

Another asset for banks such as Chase is auto loans since every month, thousands of people buy cars, and some need to finance their purchase. Installment loans constitute the use of funds and the primary instrument used by banks, including Chase, to provide financing to their clients willing to buy a new car (Madura, 2021). At Chase, clients can receive a loan for any type of car or truck, yet their interest rate and subsequently the monthly payment will depend on their credit history and the loan term. Chase has a special calculator on its website, which lets clients approximately estimate their monthly payments by choosing the auto brand, car price, the term, and their credit rating. For instance, a person with an excellent credit rating can receive approximately a 4.5% interest rate on a $30,000 loan for a 2021 Ford (“Chase auto,” n.d.). Such terms are ideal for consumers, and Chase bank can certainly be considered as the institution which provides affordable auto loans.

Finally, Chase offers mortgages by lending money to its clients purchasing a house or an apartment. A mortgage is backed by the real estate which clients purchase, it requires a down payment, and the usual term of this loan is 15-30 years (Madura, 2021). Such a lengthy period of the loan term can be explained by the fact that real estate has a high price, and people usually do not have enough resources to settle it instantly. Chase has a built-in calculator on its website, which allows clients to get an approximate rate of their mortgage. For instance, for the random zip code of 10006, the calculator showed an interest rate of 2.9% for a 30-year mortgage (“Chase home,” n.d.). Despite the fact that the aforementioned rate is not final, it can be considered appropriate for consumers, and it is certainly one of the best offers on the market.

Chase bank also offers certificates of deposit (CDs) which its clients can open and receive a fixed interest rate. Certificate of deposit constitutes a form of time deposits, meaning that they cannot be withdrawn on demand; thus, CDs are a liability, a source of funds, for banks (Madura, 2021). Clients can choose long-term and short-term CDs, and the size of their deposit can vary depending on their particular needs. Chase is a bank which offers CDs which can be opened for one month and up to ten years, while the minimum sum required for opening a CD is $1,000 (“Open a Chase,” n.d.). The rates which Chase offers for its CDs depend on the total sum deposited by the client, starting from 0,02% up to 0,05% (“Open a Chase,” n.d.). Overall, Chase’s CD’s rates are competitive, and using such a service can help consumers not only keep their money but also grow their capital.

Chase is one of the major banks in the United States, and it offers an extensive assortment of services which millions of consumers use on a daily basis. The bank’s sources of funds constitute savings and checking accounts of its clients, as well as certificates of deposit which deliver considerable annual rates. Chase also uses the funds it receives from customers by providing auto loans, credit cards, and mortgages. All of the aforementioned services provided by Chase have competitive terms and can benefit both the bank and the client.