Chase savings accounts have low interest rates and high minimum balances, which makes them a poor choice if you want your money to earn anything

Chase offers three savings products: Chase Savings, Chase Premier Savings, and Chase Secure Savings. None of them pay competitive interest. As of now, Chase Savings pays 0.01% annual percentage yield (APY) on balances under $25,000 and 0.01% on balances above that. Chase Premier Savings pays slightly more—0.04% APY—but requires a $25,000 minimum balance. If you keep less than that, you earn nothing extra. A $10,000 balance in Chase Savings earns about $1 per year. The same $10,000 in an online savings account earning 4% to 5% APY earns $400 to $500 per year. That gap matters if you are building an emergency fund or saving for something specific.

Chase makes money on your deposits by lending them out at much higher rates. The difference between what they pay you and what they charge borrowers is their profit margin. Because Chase has physical branches and brand recognition, they can afford to pay less than online-only banks, which have lower overhead and pass some of that savings to depositors. You are paying for the convenience of walking into a branch, not for competitive returns.

Key Takeaways

  • Chase Savings pays 0.01% APY with no minimum balance, while Chase Premier Savings pays 0.04% APY but requires $25,000 on deposit.
  • Online savings accounts from banks like Marcus, Ally, and American Express currently pay 4% to 5% APY on the same money.
  • Chase savings accounts have no monthly fees if you maintain a low balance or set up direct deposit, but the interest you earn will not offset inflation.
  • Chase is useful if you need a checking account there anyway and want to keep savings in the same place, but not if interest earnings are your priority.

How Chase savings rates compare to other banks

The gap between Chase and competitors is substantial. A $50,000 emergency fund earning 0.01% at Chase generates $5 per year. The same fund at an online bank earning 4.5% generates $2,250 per year. Over five years, that is a difference of $11,225 in lost earnings. Online banks like Ally, Marcus, American Express Personal Savings, and Discover all offer rates between 4% and 5.35% APY with no minimum balance and no monthly fees. They move money just as fast as Chase—typically one to two business days for transfers—and your deposits are insured by the FDIC up to $250,000, the same as at Chase.

Chase's only advantage is branch access. If you live near a Chase branch and need to deposit cash or speak to someone in person, that convenience has value. But that value does not show up in your interest earnings. You are trading higher returns for the ability to walk in and talk to a teller.

Fees and minimum balance requirements

Chase Savings has no monthly maintenance fee if you maintain a $300 minimum balance or set up direct deposit of at least $500 per month. If your balance drops below $300 and you have no direct deposit, Chase charges $5 per month. Chase Premier Savings requires $25,000 to open and waives the $25 monthly fee only if you maintain that balance. If you drop below $25,000, you pay $25 per month until you bring it back up.

Most online savings accounts have no minimum balance and no monthly fees under any circumstance. Ally, Marcus, and American Express do not charge you for falling below a threshold. This means if you have an irregular income or are building your savings slowly, an online account costs you nothing while a Chase Premier account costs you $300 per year if you slip below the minimum.

When a Chase savings account makes sense

A Chase savings account is reasonable if you already have a Chase checking account and want to keep everything in one place. The convenience of seeing both accounts in the same app and transferring money between them instantly has real value if you use Chase for daily banking. You avoid logging into multiple websites and managing multiple usernames. The $5 monthly fee on the basic savings account is avoidable with direct deposit, so your cost is zero if you get paid by direct deposit anyway.

Chase savings also works if you are not interested in optimizing interest earnings and simply need a place to park money temporarily. If you are saving for a car down payment over the next six months and do not care whether you earn $0 or $50 in interest, the simplicity of staying with Chase outweighs the lost earnings. The trade-off is explicit: you choose convenience over returns.

What to do if you want better interest rates

If you want your savings to earn meaningful interest, open an account at an online bank while keeping your Chase checking account. You do not have to choose one or the other. Move your emergency fund or long-term savings to Ally, Marcus, or American Express Personal Savings, where it will earn 4% to 5% APY. Keep your checking account at Chase if the branch access or app integration matters to you. Transfer money from checking to savings once a month or whenever you have money to set aside.

This approach takes five minutes to set up and costs nothing. You get the convenience of Chase checking plus the returns of a competitive savings account. The only minor inconvenience is that transfers between Chase and an outside bank take one to two business days, so you cannot move money instantly. If you need instant access to your savings, that delay matters. For most people building an emergency fund or saving for a goal months away, the delay is irrelevant and the interest earnings are worth it.

Chase Secure Savings and certificate of deposit alternatives

Chase Secure Savings is a certificate of deposit (CD) product that locks your money away for a set term—typically three months to five years—in exchange for a may provide rate. The current rates vary by term but are generally between 4% and 5.35% APY depending on how long you commit. The catch is that you cannot touch the money without paying an early withdrawal penalty, usually three to six months of interest.

CDs make sense if you have money you know you will not need for a specific period and want a may provide return. Chase CDs are competitive with online banks on rate, so there is no penalty for staying with Chase if you already bank there. However, if you want flexibility—the ability to withdraw your savings if an emergency happens—a regular savings account at an online bank is better than a CD. You sacrifice some interest (4.5% in savings versus 5.35% in a five-year CD) but gain the ability to access your money without penalty.

Frequently Asked Questions

Can I earn more interest by moving money between Chase accounts?

No. All Chase savings products earn the same low rates regardless of how you move money between them. Switching from Chase Savings to Chase Premier Savings increases your rate from 0.01% to 0.04% APY, but you must maintain a $25,000 minimum balance and pay $25 per month if you do not. The extra $30 per year in interest does not offset the $25 monthly fee if your balance fluctuates.

What happens if my balance drops below the minimum at Chase Premier Savings?

Chase charges you $25 per month until your balance returns to $25,000. There is no grace period. If you drop to $24,999 on day one of the month, you owe the full $25 fee. This makes the account risky if your income is irregular or you need to withdraw money for an emergency.

Is my money safe in a Chase savings account?

Yes. Chase is a member of the FDIC, and your deposits are insured up to $250,000 per account type. Your savings account is covered separately from your checking account, so you have $250,000 protection in each. Online banks offer the same FDIC protection, so safety is not a reason to choose Chase over a competitor.

How long does it take to transfer money from Chase savings to another bank?

Transfers from Chase to an external bank account typically take one to two business days. Transfers from an external bank to Chase also take one to two business days. If you need instant access to your money, keep it in your Chase checking account instead of savings, though checking accounts earn no interest at any bank.

Should I close my Chase savings account if I open one elsewhere?

Not necessarily. Keeping the Chase account costs nothing if you maintain the $300 minimum or set up direct deposit. You can leave it open and unused as a backup, or close it if you want to simplify. There is no penalty for closing, and you can reopen later if you change your mind.