Chase Sapphire Checking Does Not Pay Interest
Chase Sapphire Checking is a non-interest-bearing account. Your balance sits at zero percent annual percentage yield (APY), regardless of how much money you keep in it or how long you keep it there. Chase does not pay you interest on this account.
This is standard for most checking accounts at large banks. Chase offers interest-bearing savings accounts and money market accounts separately, but the Sapphire Checking product itself is designed for spending and bill pay, not for earning returns on your money.
Key Takeaways
- Sapphire Checking earns zero percent APY on any balance you maintain in the account.
- If you want to earn interest on deposits, you will need to move money into a separate Chase savings or money market account.
- The value of Sapphire Checking comes from its fee structure and rewards on card spending, not from interest on the checking balance itself.
- Other banks and credit unions may offer checking accounts with small interest rates, but these are uncommon at major national banks.
What Sapphire Checking Is Built For
Sapphire Checking is structured as a spending and transaction account. It comes with a debit card, online bill pay, mobile deposits, and ATM access. The account is meant to hold money you plan to use soon, not money you are setting aside to grow.
Chase makes money on this account through overdraft fees (if you go negative), through the data they collect on your spending, and through cross-selling you other products like credit cards and loans. They do not need to pay interest to attract customers to a checking account, because most people need a checking account regardless of the rate.
Where to Find Interest-Bearing Accounts at Chase
If you want to earn interest on your money at Chase, you have two main options: a Chase savings account or a Chase money market account. Both pay interest, though the rate changes based on what the Federal Reserve does with interest rates.
Chase savings accounts typically have lower minimum balances and simpler terms. Money market accounts often require a higher opening deposit but may pay a slightly higher rate. You can move money between your Sapphire Checking and either of these accounts online, usually in one business day.
The current rates on these accounts vary and change frequently. You can see the current rates on Chase's website or by calling their customer service line.
Why Banks Stopped Paying Interest on Checking
Decades ago, some banks did offer small interest rates on checking accounts. As interest rates fell over the past 20 years, and as banks shifted to making money through fees and card networks instead of lending, interest-bearing checking became rare. Today, almost no major national bank pays interest on checking.
Some smaller banks and credit unions still offer checking accounts with interest rates between 0.01 and 2 percent APY, usually with conditions like maintaining a minimum balance or setting up direct deposit. These are exceptions, not the rule.
How to Maximize Your Money at Chase
If you want to earn something on your money while keeping it accessible, keep your spending money in Sapphire Checking and move money you do not need immediately into a Chase savings account. You can transfer money back to checking whenever you need it.
Another option is to use a Chase credit card for everyday spending. The Sapphire Preferred and Sapphire Reserve cards earn points on purchases, which you can redeem for cash back or travel. This is not interest, but it is a way to get value from money you are already spending.
Fees and Minimums on Sapphire Checking
Sapphire Checking has no monthly maintenance fee and no minimum balance requirement. This means you can keep the account open with $1 in it and pay nothing. There are no fees for debit card use, online bill pay, or mobile deposits.
You will be charged an overdraft fee if you spend more than your balance, and there may be fees for things like wire transfers or stopping a check. But the core account itself is free to maintain.
Frequently Asked Questions
Can I earn interest if I keep a large balance in Sapphire Checking?
No. The interest rate on Sapphire Checking is zero percent no matter how much money you have in it. If you want to earn interest on a large balance, move the money you do not need for immediate spending into a Chase savings account or money market account.
Do other Chase accounts pay interest?
Yes. Chase savings accounts and money market accounts both pay interest. The rate varies based on market conditions and changes over time. You can see current rates on Chase's website or by visiting a branch.
What is the difference between Sapphire Checking and other Chase checking accounts?
Sapphire Checking is Chase's premium checking product, but it still does not pay interest. It differs from other Chase checking accounts mainly in its fee structure and the perks it offers, not in interest earnings. All Chase checking accounts pay zero percent APY.
Should I move my money to a different bank to earn interest on checking?
If earning interest on your checking balance is important to you, it is worth comparing what other banks offer. Some online banks and credit unions do pay small rates on checking. However, most people use checking for spending and keep interest-earning money in a separate savings account, whether at Chase or elsewhere.
How often does Chase change the interest rate on savings accounts?
Chase changes savings rates whenever the Federal Reserve changes its benchmark interest rate, or when market conditions shift. This can happen several times a year or not at all, depending on economic conditions. You can check your current rate in your online account or by calling Chase.