Chase does not offer a high-yield savings account in the traditional sense
Chase's standard savings accounts earn interest rates well below what other banks offer. As of now, Chase savings accounts earn around 0.01% annual percentage yield (APY) on balances, which means $10,000 sitting in a Chase savings account earns roughly $1 per year. That rate has not changed materially in years, even as other banks moved their rates higher.
If you are looking for a savings account that actually grows your money through interest, Chase is not the place to put it. Banks like Marcus, Ally, and American Express offer rates between 4% and 5% APY on savings accounts—meaning the same $10,000 would earn $400 to $500 per year. The difference compounds over time, especially if you are trying to build an emergency fund or save toward a goal.
Chase does offer a Chase Savings account and a Chase Premier Savings account (for customers with higher balances), but both carry the same low interest rate. The Premier version requires a minimum balance of $25,000 and offers no rate advantage in return.
Key Takeaways
- Chase savings accounts earn 0.01% APY, which is far below the 4% to 5% rates available at online banks and credit unions.
- Chase Premier Savings requires $25,000 minimum but does not pay a higher rate than regular Chase Savings.
- If earning interest on savings is your goal, moving money to an online bank or credit union will earn you significantly more.
- Chase savings accounts are useful for frequent deposits and withdrawals tied to checking, but not for money you want to grow.
- Money market accounts at Chase also carry low rates and are not a substitute for high-yield options elsewhere.
Why Chase keeps rates so low
Chase is a large retail bank with thousands of branches. That physical footprint costs money—rent, staff, maintenance. Those costs get passed to customers through lower interest rates on savings and higher fees on checking. Online banks have no branches, so they can afford to pay depositors more.
Chase also makes money by lending out customer deposits at higher rates. If they pay you 0.01% and lend that money out at 6% or 7%, the spread is enormous. They have no financial incentive to raise savings rates when customers stay with them anyway for convenience or because they already have a checking account there.
What Chase offers instead of high-yield savings
Chase has a Money Market Account that functions like a hybrid between checking and savings. It comes with a debit card and check-writing ability, but the interest rate is also very low—around 0.01% to 0.02% APY depending on your balance tier. This is not a substitute for a high-yield account.
Chase also offers Certificates of Deposit (CDs), which lock your money away for a set term (3 months, 6 months, 1 year, 5 years, and so on). CD rates at Chase are higher than savings rates but still lag behind online banks. A 1-year CD at Chase might pay 4% to 5% APY, which is competitive—but you cannot touch the money without paying an early withdrawal penalty, usually three to six months of interest.
If you need the money to stay accessible, a CD is not the right tool. If you can lock money away for a specific time period, shopping around for CD rates at online banks and credit unions will often beat Chase.
When it makes sense to keep money at Chase
Chase savings accounts are useful for specific purposes, not for growing wealth. If you need a place to park money temporarily before paying a bill, or if you want savings linked to your Chase checking account for easy transfers, the low rate is a trade-off you are making for convenience.
Chase also offers Chase Sapphire Banking, a premium package that includes a savings account, checking account, and investment services. The savings rate is still low, but you get fee waivers and other perks if you maintain high balances. This is worth considering only if you are already using Chase for multiple services and the fee savings offset the lost interest.
Many people keep a small emergency fund at Chase (say, $1,000 to $2,000) for quick access, then move larger amounts to a high-yield savings account elsewhere. This gives you the best of both: immediate access to some cash, and real growth on the rest.
How to move money to a high-yield account
Opening a high-yield savings account at another bank takes 10 to 15 minutes online. You will need your Social Security number, a government ID, and your Chase account number to link the accounts for transfers. Most online banks let you transfer money the same day or within one business day.
You do not have to close your Chase account. Many people keep both: a Chase checking account for everyday spending and bill pay, and a high-yield savings account at an online bank for money they want to grow. This setup costs nothing and takes advantage of each bank's strengths.
If you do decide to close your Chase savings account, make sure you have zero balance and no pending transactions. Chase will not charge you to close it, but they may report the closure to credit bureaus if you close it within a short time of opening it (usually less than six months). This rarely affects your credit score, but it is worth knowing.
Comparing Chase to other banks
| Bank | Account Type | APY (approximate) | Minimum Balance |
|---|---|---|---|
| Chase | Savings | 0.01% | $0 |
| Chase | Premier Savings | 0.01% | $25,000 |
| Marcus | High-Yield Savings | 4.5%–5.0% | $0 |
| Ally | Savings | 4.2%–4.5% | $0 |
| American Express | Personal Savings | 4.3%–4.6% | $0 |
| Credit Union (varies) | Savings | 3.0%–5.5% | $0–$500 |
The difference in earnings is stark. On $50,000, Chase earns you $5 per year. Marcus earns you $2,250 to $2,500. Over five years, that is a difference of over $11,000. The longer your money sits, the wider the gap grows.
The choice between Chase and a high-yield bank comes down to what you value. If you prioritize convenience and already use Chase for checking, keeping a small savings balance there makes sense. If you want your savings to actually grow, moving money to an online bank or credit union is the only way to make interest work for you.
Frequently Asked Questions
Can I get a better rate if I have a Chase checking account?
No. Chase does not offer rate bonuses for linking accounts or maintaining high balances in savings. The rate is the same whether you have $100 or $100,000 in the account, and whether you have a checking account there or not.
Are Chase savings accounts FDIC insured?
Yes. Chase is a member bank of the Federal Deposit Insurance Corporation, and savings accounts are insured up to $250,000 per depositor per bank. This protection is the same at Chase as it is at any other FDIC-insured bank, including online banks.
What happens if I move my money to another bank?
Nothing negative. You can transfer money out of Chase to another bank at any time with no penalty. Chase will not charge you a fee to move money or close the account. Your credit score is not affected unless you close the account within six months of opening it.
Do Chase CDs pay better rates than savings accounts?
Yes, but only if you lock your money away. A Chase 1-year CD might pay 4% to 5% APY, which is much better than savings. However, you cannot withdraw the money early without losing three to six months of interest. Online banks often pay similar or better CD rates with the same restrictions.
Should I keep any money at Chase if I open a high-yield account elsewhere?
Many people keep $1,000 to $3,000 at Chase for immediate access and emergencies, then move larger amounts to a high-yield account. This gives you quick cash when you need it and real growth on the rest. You do not have to choose one or the other.