Chase's high-yield savings account pays less than most competitors

Chase offers a Chase Savings Account and a Chase Premier Savings Account, but neither qualifies as a high-yield savings account by current market standards. As of early 2024, Chase's savings rates sit between 0.01% and 0.35% depending on your balance and account type. Online banks and credit unions routinely offer rates between 4% and 5.35%, meaning you earn 10 to 15 times more interest at those institutions on the same dollar amount.

Chase's rates are low because the bank prioritizes branch access and checking account products over savings rates. If you keep most of your money in a Chase checking account anyway and value in-person banking, the savings account may be convenient. But if you're specifically looking to earn meaningful interest on money you're setting aside, Chase is not the right choice.

Key Takeaways

  • Chase savings accounts pay 0.01% to 0.35% annual interest, far below the 4% to 5.35% offered by online banks and credit unions.
  • Chase charges no monthly maintenance fee on most savings accounts, but you earn so little interest that the fee structure doesn't offset the low rate.
  • If you need a savings account specifically to earn interest, moving money to an online bank or credit union will earn you hundreds of dollars more per year on a $10,000 balance.
  • Chase savings accounts work well only if convenience and branch access matter more to you than interest earnings.

How Chase's savings rates compare to other banks

The gap between Chase and high-yield savings accounts is substantial. On a $10,000 balance held for one year, Chase might earn you $10 to $35 in interest. The same $10,000 at an online bank earning 4.5% would earn $450. That's a difference of $415 to $440 per year on a single account.

Chase's Premier Savings Account, which requires a higher opening deposit and minimum balance, pays a slightly better rate than the standard savings account, but still lags behind online options. The rate difference widens the more money you have saved. If you're building an emergency fund of $25,000 or more, the interest gap becomes impossible to ignore.

Credit unions often offer competitive rates as well, sometimes matching or beating online banks. If you're a member of a credit union, check their savings rates before opening anything at Chase.

Fees and account requirements

Chase charges no monthly maintenance fee on its savings accounts, which is standard across the industry now. You won't pay for the account itself, and there's no minimum balance requirement to avoid a fee on the standard Chase Savings Account. The Premier Savings Account does require a higher opening deposit, typically $25,000, but again, no monthly fee.

Where you may encounter fees is through overdraft protection or if you exceed the federal limit on savings withdrawals in a month. Chase allows six withdrawals per month before charging $10 per withdrawal after that. Most online banks have removed this limit entirely, so if you plan to move money in and out frequently, Chase adds friction.

When a Chase savings account makes sense

A Chase savings account is practical if you already have a Chase checking account and rarely move money between banks. The convenience of managing everything in one place, plus access to Chase branches and ATMs, has real value for some people. If you're keeping $500 to $2,000 in savings as a small buffer and don't care about maximizing interest, the account works fine.

Chase is also reasonable if you're new to banking and want to start with a familiar, large institution. Once you're comfortable with how savings accounts work, you can move money to a higher-rate account without closing your Chase checking account.

Chase savings accounts are not the right choice if you're trying to build wealth through interest earnings, saving for a specific goal like a down payment or vacation, or have more than $5,000 sitting in savings. In those situations, the interest difference is too large to ignore.

How to move money to a higher-rate account

Opening a high-yield savings account at an online bank takes 10 to 15 minutes. You'll need your Social Security number, a government ID, your current address, 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 don't have to close your Chase savings account. Many people keep a small amount there for convenience and move the bulk of their savings to an online bank or credit union. This way you keep the branch access if you need it, but earn real interest on the money that matters.

Online banks with consistently high rates include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank. Credit unions vary by location and membership, so check what's available in your area. Compare the current rate, any fees, and whether you can link the account to your Chase checking account for easy transfers.

The trade-off between convenience and earnings

Choosing between Chase and a high-yield account is ultimately a trade-off. Chase gives you branches, ATMs, and the ability to walk in and deposit cash. Online banks give you interest that actually grows your money. The question is which matters more to you.

If you deposit cash regularly or need to withdraw cash in person, Chase has an advantage. If you mostly transfer money electronically and rarely need physical cash, an online bank costs you nothing in convenience but gains you hundreds of dollars per year in interest. Most people fall somewhere in between, which is why keeping a small amount at Chase and moving larger savings elsewhere is a common solution.

Frequently Asked Questions

Can I earn more interest by putting money in a Chase money market account instead?

Chase money market accounts pay similarly low rates to savings accounts, typically 0.01% to 0.35%. They're not a better option for interest earnings. Online banks offer high-yield money market accounts that pay 4% to 5%, so the same gap applies.

What if I need to access my money quickly?

Both Chase and online banks let you withdraw money within one to two business days. Online banks are not slower. If you need cash immediately, Chase branches are faster, but most people don't face that situation regularly enough to justify earning 10 times less interest.

Does Chase offer any savings account that pays a competitive rate?

No. Chase does not offer a high-yield savings account. All of their savings products pay well below market rates. If you want competitive interest from a large bank, you'll need to move your money elsewhere.

Will moving money to another bank affect my Chase checking account?

No. Opening a savings account at another bank doesn't change your Chase checking account. You can keep your checking there and move savings to a higher-rate account without any impact on your checking service or fees.