Chase savings accounts pay almost nothing and charge fees unless you meet their requirements
Chase offers several savings accounts, but the one most people encounter is the Chase Savings Account, which currently pays around 0.01% annual percentage yield (APY) on balances. That means $10,000 sitting in the account for a year earns about $1. The account also charges a $5 monthly maintenance fee unless you maintain a $500 minimum daily balance or link it to a Chase checking account.
Whether this account makes sense depends entirely on what you need the account to do. If you want to park money and earn interest, Chase savings is not competitive—you can find online banks paying 4% to 5% APY with no fees. If you already have a Chase checking account and want a linked savings account for convenience, the fee disappears and the low rate becomes less of a problem, because you are not choosing it for yield.
The real question is not whether Chase is good in the abstract, but whether it is good for your specific situation: how much you keep in savings, whether you already bank with Chase, and whether you care about earning interest on that money.
Key Takeaways
- Chase Savings Account pays 0.01% APY, which is roughly 400 times lower than rates at online banks, so interest earnings are minimal on any balance.
- The $5 monthly fee vanishes if you maintain a $500 minimum daily balance or link the account to a Chase checking account.
- Chase savings makes sense only if you already use Chase checking and want a linked account for transfers and bill pay, not if you are choosing based on interest rate.
- Online banks and credit unions typically offer savings rates between 4% and 5% APY with no monthly fees, making them better for money you want to grow.
- Chase does not restrict how often you withdraw from savings, so there is no penalty for moving money out when you need it.
How the monthly fee works and when you avoid it
Chase charges $5 per month to hold a savings account, but the fee does not apply if either of two conditions is met: you keep a $500 minimum daily balance in the savings account itself, or you link the savings account to a Chase checking account (any Chase checking account, regardless of its balance).
The $500 minimum is a daily requirement, not an average. If your balance drops to $499 on any single day, you pay the fee that month. For most people, the easier route is linking to checking—you do not have to keep any specific balance in savings, and the fee simply disappears. If you do not have a Chase checking account and do not want one, the $500 minimum is your only option to avoid the fee.
The fee posts on the last day of each statement cycle. If you fall below $500 or unlink your checking account, the fee appears on your next statement.
Interest rates compared to other banks
Chase Savings Account pays 0.01% APY. On a $10,000 balance held for one year, that generates $1 in interest. On $50,000, it generates $5. Most online banks—Ally, Marcus, Wealthfront, and others—currently pay between 4% and 5% APY on the same balances, generating $400 to $500 per year on $10,000.
Credit unions often offer competitive rates as well, sometimes higher than online banks, though rates vary by institution and by how much you deposit. The difference between 0.01% and 4.5% is not rounding error—it is the difference between your money sitting still and your money actually working.
Chase's rate does move with the Federal Reserve's actions, so it can change. When the Fed raises rates, Chase may raise its savings rate slightly. But historically, Chase has lagged behind online banks by a wide margin, and there is no reason to expect that to change.
When a Chase savings account makes practical sense
A Chase savings account is useful if you already have a Chase checking account and want a second account for a specific purpose—an emergency fund, a sinking fund for a known expense, or money you are saving toward a goal. The convenience of having both accounts in one place, with instant transfers between them and the same login, has real value if you are already paying Chase for checking.
It also makes sense if you need a savings account quickly and already have a Chase relationship. Opening takes minutes online, and the account is immediately usable. If you are moving money around frequently or using savings as a holding tank before moving it elsewhere, the low rate matters less than the speed and ease of access.
Chase savings does not make sense if your primary goal is to earn interest on money you plan to leave untouched for months or years. In that case, the difference between 0.01% and 4.5% is hundreds of dollars per year, and there is no offsetting convenience benefit.
Withdrawal limits and how to move money out
Chase does not limit how many times you withdraw from savings per month or per statement cycle. You can move money out as often as you want, to your Chase checking account or to an external account, without penalty or fee.
Transfers to your own Chase checking account are instant. Transfers to an external bank account take one to two business days. If you need cash immediately, you can visit a Chase branch or ATM and withdraw directly.
This flexibility is one area where Chase savings is genuinely useful—you are not locked in or restricted. If you decide to move your money to a higher-rate account, you can do so without waiting or paying a transfer fee.
Comparing Chase to online banks and credit unions
| Account Type | Current APY | Monthly Fee | Minimum Balance | Best For |
|---|---|---|---|---|
| Chase Savings | 0.01% | $5 (waived with $500 min or linked checking) | $0 to open | Linked to Chase checking; short-term holding |
| Online Bank (Ally, Marcus, etc.) | 4.0%–5.0% | $0 | $0 to $25 | Interest earnings; long-term savings |
| Credit Union Savings | 2.0%–5.0% (varies) | $0 to $5 | $25 to $500 | Local banking; member benefits |
The table shows why Chase is rarely the best choice for savings alone. You pay a fee or maintain a balance, earn almost no interest, and get no other benefit. Online banks charge no fee, pay real interest, and have no minimum balance. Credit unions vary widely, but most offer better rates than Chase and lower or no fees.
The only scenario where Chase wins is convenience—if you already bank there and want everything in one place. That convenience has a cost: roughly $50 to $500 per year in foregone interest, depending on your balance.
FDIC protection and account safety
Chase is a large bank, and deposits are insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 per account holder, per bank. Your savings account is covered by this insurance, so if Chase fails, your money up to $250,000 is protected.
Online banks and credit unions also carry FDIC or NCUA (National Credit Union Administration) insurance, so safety is not a differentiator. Your money is equally protected at Chase, Ally, or a credit union.
Frequently Asked Questions
Can I avoid the $5 fee without keeping $500 in the account?
Yes. Link the savings account to any Chase checking account, and the fee disappears regardless of your savings balance. You do not need to maintain any minimum in either account once they are linked.
Does Chase savings pay interest monthly or annually?
Interest compounds daily and is deposited monthly. At 0.01% APY, the monthly deposit is tiny—about $0.08 per $10,000—but it does post to your account each month.
What happens if I drop below $500 for one day?
You pay the $5 fee on your next statement. The minimum is checked daily, so even a single day below $500 triggers the fee. Linking to checking is the more reliable way to avoid it.
Can I transfer money from Chase savings to an external bank account?
Yes. Transfers to external accounts take one to two business days and are free. You can move money out as often as you want without penalty.
Is Chase savings better than keeping money in checking?
Chase checking typically pays 0% APY, so savings pays slightly more. But the $5 fee and low rate make both poor choices for money you want to keep. An online savings account at 4.5% is better than either.