Chase does not offer a dedicated high-yield savings account
Chase's standard savings account earns interest, but the rate is significantly lower than what you'll find at online banks or credit unions. As of now, Chase savings accounts earn around 0.01% annual percentage yield (APY) on balances, though this rate changes and varies slightly by account type and region. If earning meaningful interest on savings is your goal, you'll need to look elsewhere or use a different product within Chase's lineup.
Chase does offer a Chase Savings Bank product through its online division, which pays higher rates than the traditional Chase savings account—but it's still typically lower than standalone high-yield savings accounts from online-only banks. The rate on Chase Savings Bank accounts has ranged from 4% to 5% APY in recent years, depending on the balance tier and current market conditions, but you should check Chase's website for the current rate before opening.
Key Takeaways
- Chase's traditional savings account earns around 0.01% APY, which is far below what high-yield accounts offer elsewhere.
- Chase Savings Bank, Chase's online savings product, pays higher rates (typically 4% to 5% APY depending on balance) but requires you to open an account through a separate online portal.
- If you want the highest interest rates available, online banks and credit unions often pay 4.5% to 5.35% APY with no balance minimums.
- Chase's value may lie in convenience if you already bank there and want to keep everything in one place, not in earning the most interest.
How Chase Savings Bank differs from a regular Chase savings account
Chase Savings Bank is a separate product operated through Chase Bank's online division. You open it through a different portal than your regular Chase checking or savings account, and it functions as a standalone account. The main difference is the interest rate: Savings Bank accounts earn substantially more than traditional Chase savings accounts.
The trade-off is that Savings Bank accounts don't come with a physical debit card or access to Chase branches. You can transfer money between your regular Chase accounts and your Savings Bank account online, but you can't walk into a branch and make deposits or withdrawals. For most people, this isn't a problem—you can move money when you need it—but it's worth knowing if you prefer in-person banking.
Why Chase's rates lag behind other banks
Chase is a large brick-and-mortar bank with thousands of branches, ATMs, and employees. Those physical locations and services cost money, and Chase passes some of that cost to customers through lower interest rates. Online-only banks have no branches to maintain, so they can offer higher rates on savings because their overhead is lower.
Additionally, Chase makes money by lending out deposits at higher rates than it pays you. The wider the gap between what it pays you and what it charges borrowers, the more profit Chase keeps. Competitive online banks narrow that gap to attract deposits; Chase doesn't need to, because many customers stay for convenience and brand familiarity.
Comparing Chase Savings Bank to online high-yield accounts
| Account Type | Typical APY Range | Minimum Balance | FDIC Insurance | Access Method |
|---|---|---|---|---|
| Chase Savings Bank | 4% to 5% APY | Varies by tier | Yes, up to $250,000 | Online only |
| Online high-yield savings (e.g., Marcus, Ally, Wealthfront) | 4.5% to 5.35% APY | $0 to $25,000 | Yes, up to $250,000 | Online only |
| Chase traditional savings | 0.01% APY | $0 to $300 | Yes, up to $250,000 | Online, branch, ATM |
| Credit union savings (varies widely) | 3% to 6% APY | $0 to $1,000 | Yes, up to $250,000 | Online, branch, ATM |
If you're comparing Chase Savings Bank to accounts at online banks like Marcus, Ally, or Wealthfront, the rates are often similar or slightly higher at the online competitors. The real advantage of Chase Savings Bank is if you already have a Chase checking account and want to keep everything in one institution for simplicity. The interest rate difference between Chase Savings Bank and a dedicated online high-yield account is usually small enough that convenience might outweigh it.
What to consider before opening a Chase savings account
If you're deciding between Chase and another bank, think about what matters most to you. Do you value the ability to deposit cash at a physical branch or withdraw from an ATM? Chase has thousands of both. Do you want the highest possible interest rate? An online bank will likely beat Chase. Do you want everything in one place for simplicity? Chase Savings Bank lets you keep your checking and savings together.
Also consider whether you'll actually use the account. If you're saving money and won't touch it for months or years, the difference between 0.01% and 5% is enormous—that's the difference between earning almost nothing and earning real money on your balance. But if you're using the account as a temporary holding place before moving money elsewhere, the rate matters less.
How to open a Chase Savings Bank account
If you decide Chase Savings Bank is right for you, you'll need to open it through Chase's online banking portal, separate from a traditional Chase savings account. You can do this from home using your computer or phone. You'll need to verify your identity and link it to an existing Chase checking account or open one at the same time.
Once it's open, you can transfer money between your Chase checking account and Savings Bank account instantly online. You can also set up automatic transfers if you want to move money on a regular schedule. Withdrawals take one to two business days if you're moving money to an external bank account.
Frequently Asked Questions
Can I get a debit card for a Chase Savings Bank account?
No. Chase Savings Bank accounts are online-only and don't come with a debit card. You can only access the money by transferring it to another account or requesting a withdrawal. This is by design—the online-only structure is how Chase keeps costs down enough to offer higher rates.
Is my money safe in a Chase Savings Bank account?
Yes. Chase Savings Bank deposits are insured by the FDIC up to $250,000 per account holder, per bank. This is the same protection you get with any bank account. Your money is safe even if Chase fails, though that's extremely unlikely for a bank this large.
What happens if Chase lowers the interest rate on Savings Bank?
Chase can change the rate at any time without notice. Banks do this when market conditions change or when they want to reduce costs. If the rate drops significantly, you can move your money to another bank—there's no penalty for closing a savings account.
Can I have both a Chase savings account and a Chase Savings Bank account?
Yes. Some people keep a traditional Chase savings account for easy access and a Savings Bank account for earning higher interest. You can transfer money between them instantly online, so you could use the traditional account as a buffer and keep most of your savings in Savings Bank.
Do I need a Chase checking account to open Savings Bank?
You typically need to link Savings Bank to an existing Chase checking account, or open one at the same time. If you don't have a Chase checking account and don't want one, a standalone online high-yield savings account from another bank might be simpler.