Chase offers savings accounts, but their rates are typically lower than other banks
Chase's main savings product is the Chase Savings Account, which earns interest but at rates well below what you can find elsewhere. As of early 2024, Chase's savings rate hovers around 0.01% annual percentage yield (APY) on standard savings accounts—meaning $10,000 earns about $1 per year. This is substantially lower than online banks and credit unions, which commonly offer 4% to 5% APY on high-yield savings accounts.
Chase does offer a Chase Premier Savings Account for customers who maintain higher balances (typically $100,000 or more), which pays a slightly better rate. However, even this account's rate remains below what you can earn at competitors. The trade-off is convenience: if you use Chase for checking, bill pay, and ATM access, keeping savings there means one login and one relationship.
The reason Chase's rates stay low is simple economics. Chase is a large retail bank with thousands of branches and ATMs. They don't need to offer competitive rates to attract deposits because customers come for the branch network and the checking account. Online banks and smaller credit unions compete primarily on rate, so they pass along higher yields to draw your money.
Key Takeaways
- Chase's standard savings account earns around 0.01% APY, which is roughly 50 to 100 times lower than rates at online banks and credit unions.
- Chase's Premier Savings Account pays slightly more but still lags behind competitors and requires a high minimum balance.
- You can earn 4% to 5% APY at online banks like Marcus, Ally, or American Express Personal Savings, or at credit unions that offer high-yield savings products.
- Keeping savings at Chase makes sense only if convenience and branch access outweigh the cost of earning almost nothing on your money.
How Chase savings rates compare to online banks and credit unions
The gap between Chase and competitors is stark. A $50,000 balance earning 0.01% at Chase generates $5 per year. The same balance at a 4.5% APY account earns $2,250 per year—a difference of $2,245 annually. Over five years, that's more than $11,000 in lost earnings.
Online banks like Marcus (by Goldman Sachs), Ally Bank, and American Express Personal Savings consistently offer rates between 4% and 5.35% APY. Credit unions often match or exceed these rates through their high-yield savings products. These institutions have lower overhead (no branches, fewer employees) and can afford to pass savings along as higher rates.
Chase's rate does move with the Federal Reserve's decisions, so it will rise or fall as the Fed adjusts its benchmark rate. However, Chase historically lags behind competitors when rates go up and drops faster when rates fall. This pattern means you're always behind the market.
When a Chase savings account still makes sense
A Chase savings account is reasonable if you value simplicity and already bank there. If you use Chase checking for direct deposit, bill pay, and ATM access, adding a savings account means no new login, no new customer service line, and one place to manage money. For some people, that convenience is worth the lower rate.
Chase savings also makes sense if you're building an emergency fund and need to move money quickly between accounts. Transfers between your Chase checking and savings are instant, and you can withdraw cash at any Chase branch or ATM without a fee. If you're the type to panic and pull money out frequently, the friction of moving money to an online bank might actually protect you from raiding your savings.
For customers who maintain very high balances (over $500,000), Chase's relationship banking team may negotiate slightly better rates or offer other perks. This is rare and requires asking directly, but it's worth exploring if you have substantial assets at Chase.
How to move money from Chase 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, and your Chase account number (to link for transfers). Most online banks let you fund the new account by ACH transfer directly from Chase checking or savings.
The transfer itself takes one to three business days. During that time, your money is in transit and earning nothing, so the timing doesn't matter much. Once the account is open and funded, your money starts earning the higher rate immediately.
You don't have to close your Chase savings account. Many people keep a small balance there for convenience and move the bulk to a higher-rate account. This gives you the best of both: easy access to some cash, plus real earnings on the rest.
What to watch for when comparing savings rates
APY (annual percentage yield) is the only number that matters when comparing accounts. It already includes compounding, so a 4.5% APY account will earn exactly that amount over a year, assuming the rate doesn't change. Ignore any mention of "introductory rates"—online banks don't use them for savings accounts the way credit cards do.
Check whether the account has a minimum balance requirement. Most online banks have no minimum, but some credit unions require $500 or $1,000 to open. A minimum doesn't affect the rate, but it does affect whether you can open the account with the amount you have.
Verify that the account is FDIC-insured (at banks) or NCUA-insured (at credit unions). This protects your money up to $250,000 per account owner per institution if the bank fails. All major online banks and credit unions carry this insurance, but it's worth confirming before you move money.
Why Chase doesn't raise rates to compete
Chase has no incentive to match online bank rates. Their customers are sticky—people who use Chase checking, have a mortgage there, or have a credit card are unlikely to leave just for a slightly higher savings rate. The cost of raising rates on millions of accounts would be enormous, and they'd lose money on the deal.
Online banks, by contrast, compete almost entirely on rate. They have no branch network, no credit card portfolio, and no mortgage business to cross-sell. Rate is their only hook, so they keep it high to attract deposits.
This dynamic is unlikely to change. Chase will continue to offer low rates on savings because it works for their business model. If you want to earn real interest, you have to move your money.
Frequently Asked Questions
Can I earn more interest by putting money in a Chase money market account instead?
Chase money market accounts pay slightly more than savings accounts but still lag behind online banks. Rates vary by balance tier, but even the highest tier rarely exceeds 0.5% APY. You're still better off at an online bank or credit union, and you'll have fewer withdrawal restrictions at a savings account anyway.
What happens to my savings rate if the Federal Reserve cuts interest rates?
Chase will lower your rate, usually within a few weeks. Online banks typically lower rates at the same pace or slightly slower, so the gap between Chase and competitors may shrink temporarily. However, when rates rise again, Chase lags behind, so the gap widens once more.
Is my money safe if I move it to an online bank I've never heard of?
Yes, as long as the bank is FDIC-insured and you keep your balance under $250,000. FDIC insurance protects your money the same way at a small online bank as it does at Chase. Check the bank's website or call the FDIC to confirm insurance status before you transfer.
Can I keep my Chase checking account and just move my savings elsewhere?
Absolutely. You don't have to close your Chase account or change banks for checking. Many people keep Chase checking for convenience and move savings to a higher-rate account. You can link the accounts for easy transfers between them.
How often do online bank rates change?
Online banks adjust rates whenever the Federal Reserve moves its benchmark rate, which happens several times per year. Some banks adjust within days; others wait a week or two. The rate you see when you open an account is not may provide forever, but it will move with the market, not arbitrarily downward.