Chase does pay interest on savings accounts, but the rate depends on which account you open
Chase offers several savings products, and each one earns interest at a different rate. The most common option is the Chase Savings Account, which currently earns a variable interest rate that changes based on market conditions and Federal Reserve decisions. Chase also offers the Chase Premier Savings account for customers with higher balances, which pays a higher rate. A third option is the Chase Money Market Account, which typically pays more interest than a regular savings account but requires a larger opening deposit and minimum balance.
Interest rates at Chase change frequently—sometimes weekly—so the rate you see today may not be the rate you earn next month. The rate also depends on how much money you keep in the account. Accounts with larger balances often earn higher rates than accounts with smaller balances. You can check the current rates on Chase's website or by calling 1-800-935-9935, but those rates are not locked in and will shift as market conditions change.
Key Takeaways
- Chase Savings Account earns interest, but the rate is variable and changes based on Federal Reserve policy and market conditions.
- Chase Premier Savings and Chase Money Market Account both pay higher rates than the basic savings account, but require larger minimum balances.
- Interest rates at Chase are not may provide and can change weekly, so the rate you open with may be different in a few months.
- Interest is compounded daily and paid monthly, meaning you earn interest on your interest as well as your principal balance.
- You can view current rates on Chase.com or by phone, but you should check again before opening an account to see the most recent rate.
How Chase calculates and pays interest
Chase compounds interest daily, which means the bank calculates how much interest you owe based on your balance every single day. At the end of each month, Chase deposits that interest into your account. Because interest is compounded daily, you earn interest on the interest you already earned in previous days—this is called compound interest, and it means your money grows faster than if interest were only calculated once a month.
The amount of interest you earn depends on three things: the interest rate, how much money is in your account, and how long the money stays there. If you deposit $10,000 and leave it untouched for a full year, you will earn more interest than if you deposit $10,000 and withdraw half of it after six months. The interest rate itself is an annual percentage yield, or APY, which already accounts for the effect of daily compounding.
The difference between Chase Savings and Chase Premier Savings
Chase Savings Account is the basic option and has no minimum opening deposit—you can open it with $0. However, the interest rate on this account is typically lower than the rates on Chase's other savings products. This account is best for people who want to save money without committing to a large balance.
Chase Premier Savings requires a higher opening deposit and a higher minimum balance to earn the advertised rate. If your balance falls below the minimum, the interest rate drops to a lower tier. This account pays more interest than the basic savings account, but only if you can maintain the required balance. The minimum balance requirement varies and can change, so you should confirm the current requirement before opening the account.
Chase Money Market Account is a hybrid between a checking and savings account. It pays interest like a savings account but also comes with a debit card and check-writing privileges. The interest rate is usually higher than both the basic savings account and Premier Savings, but the minimum opening deposit and minimum balance requirement are also higher. This account makes sense if you want to earn interest while still having easy access to your money for everyday spending.
Why Chase interest rates are lower than some competitors
Chase is a large national bank with thousands of branches and ATMs across the country. That physical infrastructure costs money, and those costs are built into the interest rates Chase can afford to pay. Online banks and credit unions, which have no branches, can pay higher interest rates because they have lower overhead costs. If earning the highest possible interest rate is your priority, you may find better rates elsewhere.
However, Chase offers other benefits that some customers value more than a slightly higher interest rate. You can walk into a Chase branch to deposit cash, speak to a person in person, or access your money at any of thousands of ATMs without paying a fee. You also have access to Chase's mobile app, online banking, and customer service by phone. These conveniences come at the cost of a lower interest rate.
How to check your current interest rate and earnings
You can see your current interest rate by logging into your Chase online account or mobile app. Look for the account details or account summary section—the APY should be listed there. You can also call Chase customer service at 1-800-935-9935 and ask a representative to tell you the rate on your specific account.
To see how much interest you have earned, check your monthly account statement. Chase sends a statement every month (or you can view it online), and it shows the interest deposited into your account that month. If you want to estimate how much interest you will earn over time, you can use an online savings calculator and enter your balance, the APY, and the number of months you plan to keep the money in the account.
What happens if you withdraw money before earning interest
Chase does not penalize you for withdrawing money from a savings account at any time. Unlike a certificate of deposit (CD), which charges a penalty if you withdraw early, a savings account lets you take out money whenever you want without losing any interest you have already earned. However, if you withdraw money partway through a month, you will earn less interest that month because your balance was lower for part of the month.
For example, if you keep $5,000 in your account for the first 15 days of the month and then withdraw $2,000, you will earn interest on $5,000 for 15 days and interest on $3,000 for the remaining 15 days. The interest you earn that month will be lower than if you had kept the full $5,000 in the account the entire month. This is because interest is calculated daily based on your balance each day.
Comparing Chase savings to other options
If you want to compare Chase's interest rates to other banks, you can check websites that list current rates across multiple institutions. These sites update regularly and show you which banks are paying the highest rates at any given time. Keep in mind that the highest rate is not always the best choice if it comes from a bank where you cannot easily deposit cash or access customer service.
Credit unions often pay higher interest rates than large banks, but you must be a member to open an account. Some credit unions have membership requirements based on where you work, where you live, or groups you belong to. If you are a member of a credit union, comparing their savings rate to Chase's rate is worth doing before you decide where to keep your money.
Frequently Asked Questions
How often does Chase pay interest?
Chase pays interest monthly. Interest is compounded daily, meaning it is calculated every day, but the money is deposited into your account once a month, usually around the same date each month.
Will my interest rate stay the same?
No. Chase savings rates are variable, which means they change based on Federal Reserve policy and market conditions. Your rate can go up or down, and Chase will notify you of changes before they take effect.
Is there a penalty for closing my Chase savings account?
Chase does not charge a penalty for closing a savings account. You can close it at any time without losing any interest you have already earned. You will receive any remaining balance, plus any interest earned through the date you close the account.
Can I earn interest on money in my Chase checking account?
Most Chase checking accounts do not pay interest, or pay a very small amount. If earning interest is important to you, open a Chase savings account or money market account instead. Some premium checking accounts may pay a small amount of interest, but it is typically much less than a savings account.
What is the minimum balance needed to earn interest at Chase?
The basic Chase Savings Account has no minimum balance requirement to earn interest—you earn interest on whatever balance you have. However, Chase Premier Savings and Money Market Account require higher minimum balances to earn the advertised rate. Check Chase.com for current minimum balance requirements.