Chase savings accounts do earn interest, but the rate is lower than most online banks

Yes, Chase savings accounts earn interest. The amount depends on which account you open, how much money you keep in it, and what Chase's current rate is. Chase changes its rates regularly — sometimes weekly — so the rate you see today may shift next week. The key is understanding which Chase account fits your situation and what it's currently paying.

Chase offers two main savings products: the Chase Savings account and the Chase Money Market Account. Both pay interest, but the Money Market Account pays more because it requires a larger opening deposit and comes with additional features like check-writing. Neither rate is competitive with online-only banks, but both accounts give you in-branch access and FDIC protection up to $250,000.

Key Takeaways

  • Chase Savings is the basic option, requires a $300 minimum balance to avoid a $5 monthly fee, and pays a rate lower than online banks but higher than most checking accounts.
  • Chase Money Market Account pays a higher rate than Chase Savings, requires a $2,500 opening deposit, and includes check-writing and debit card access.
  • Interest compounds daily but is credited to your account once per month, meaning you earn interest on your interest over time.
  • Chase rates change frequently and are not negotiable — you cannot lock in a rate before opening an account.
  • Excess withdrawal fees ($10 per withdrawal beyond six per month) and maintenance fees can reduce your interest earnings significantly.

Chase Savings account: the standard option with modest rates

The Chase Savings account is Chase's basic savings product. It currently pays a rate that is lower than what you would find at online-only banks, but it gives you the ability to walk into a Chase branch and speak to a person. This account has no monthly maintenance fee as long as you keep a minimum balance — currently $300. If your balance drops below that, Chase charges $5 per month.

You can make up to six withdrawals or transfers per month before Chase charges you $10 for each withdrawal beyond that limit. Interest compounds daily and is credited to your account once a month. The current interest rate on Chase Savings varies slightly by state and by how much money you have in the account. Chase publishes rates on its website, but you should check the current rate before opening an account, because it changes frequently and may be lower than rates offered by online banks.

Chase Money Market Account: higher rates with more features

The Chase Money Market Account pays a higher interest rate than Chase Savings, but it requires a larger opening deposit and has different withdrawal rules. This account is designed for people who want to earn more interest while keeping some access to their money. The Money Market Account comes with a debit card and check-writing privileges, so you can access your money more easily than you can with a regular savings account.

You are still limited to six withdrawals or transfers per month before incurring fees. The minimum opening deposit is typically $2,500, though this can vary. Like Chase Savings, the Money Market Account's interest rate varies by state and balance tier. The higher rate is the main reason to choose this account over regular savings, so compare the current rate to what you would earn in Chase Savings before deciding.

How Chase interest rates compare to other banks

Chase's savings rates are generally lower than rates offered by online banks and credit unions. This is a trade-off: you pay for the convenience of branch access and the Chase brand by accepting a lower return on your money. If you keep most of your savings at Chase for convenience but want to earn a higher rate on money you do not need immediate access to, you might open a high-yield savings account at an online bank for that portion.

Interest rates across all banks change based on Federal Reserve policy. When the Fed raises its benchmark rate, banks typically raise savings rates. When the Fed cuts rates, banks cut savings rates. Chase's rates move in the same direction as the broader market, but they tend to lag behind online banks — online banks often raise rates faster and higher than Chase does. You can check current rates on Chase's website or call 1-800-935-9935 to ask what rate is being offered on the account type you are considering. Rates are not negotiable, and you cannot lock in a rate before opening the account.

How interest compounds and when you see it in your account

Chase compounds interest daily, which means the bank calculates what you owe based on your balance every single day. However, the interest is not added to your account every day — it is credited once per month. This monthly crediting is standard across the banking industry. The benefit of daily compounding is that you earn interest on your interest. If you have $10,000 in the account and earn $5 in interest in the first month, that $5 is now part of your balance, and you will earn interest on it in the second month.

Over time, this compounds, though at Chase's current rates the effect is modest. You can see your interest earnings in your monthly statement. Chase also shows a running total of year-to-date interest earned if you log into your online account.

Fees that reduce your interest earnings

Chase charges several fees that can eat into the interest you earn. The most common is the monthly maintenance fee of $5 if your balance falls below $300 in a regular savings account. Over a year, that is $60 in fees, which could wipe out several months of interest earnings at current rates. Excess withdrawal fees also apply: you are allowed six withdrawals or transfers per month, and each withdrawal beyond that costs $10.

If you frequently move money in and out of your savings account, these fees will add up quickly. To avoid fees, keep your balance above the minimum and limit yourself to six withdrawals or transfers per month. If you need to move money more frequently, a checking account might be a better fit than savings.

FDIC insurance protects your money up to $250,000

All money in a Chase savings account is protected by FDIC insurance up to $250,000 per account holder per bank. This means if Chase fails, the federal government will reimburse you for the full balance of your savings account, up to that limit. This protection applies to both Chase Savings and Chase Money Market accounts.

If you have more than $250,000 to save, you can open multiple accounts in different names (for example, one in your name alone and one jointly with your spouse) to increase your coverage. Each account structure is insured separately up to $250,000.

Frequently Asked Questions

Can I move money between my Chase checking and savings account without paying a fee?

Yes, transfers between your own Chase checking and savings accounts do not count toward the six-withdrawal limit and do not incur fees. However, transfers to accounts at other banks do count toward the limit. After six external transfers per month, Chase charges $10 for each additional transfer.

What happens to my interest rate if Chase lowers rates?

Your rate changes automatically when Chase changes its rates. You do not have to do anything, and you cannot lock in a rate. Chase will notify you before a rate change takes effect, usually by email or through your online account.

Is the interest I earn on my Chase savings account taxable?

Yes. Chase will send you a 1099-INT form at the end of the year if you earned $10 or more in interest. You must report this interest as income on your federal tax return. The amount of interest you earn at current Chase rates is usually small, but it still counts as taxable income.

Can I earn interest on money in my Chase checking account?

Most Chase checking accounts do not pay interest. Chase offers one checking account called Chase Premier Plus Checking that pays a very small amount of interest, but the rate is extremely low. If you want to earn meaningful interest, you need a savings or money market account.