Chase Bank offers two savings accounts, each with modest interest rates. Monthly fees can make those yields even smaller, but you do have a few ways to avoid them and keep your earnings in tact. Perhaps more importantly to its customers, Chase has a large national footprint with a vast network of branches and ATMs, as well as an easy-to-use mobile app.
Chase Bank interest rates
Chase offers two primary savings accounts: Chase Savings and Chase Premier Savings.
Both have a minimum APY of 0.01%. However, you can earn an additional 0.1 percentage point on the Chase Premier Savings account if you link a Premier Plus Checking or Sapphire Checking account and make at least five transactions a month. When those two qualifications are met, your interest rate bumps to 0.02%.
If you’re solely interested in getting the best yield on your savings, the juice is hardly worth the squeeze. Many other financial institutions offer higher rates on savings, making Chase’s options best for folks who are seeking something else, such as Chase checking account customers looking for a convenient place to stash a little bit of cash.
Even in this scenario, though, your main emergency fund should be kept elsewhere.
Overview of Chase Bank interest rates
While these rates give you a baseline of the type of interest you can earn with Chase, each savings account comes with a monthly fee, which can significantly reduce your actual earnings if you don’t qualify to get them waived.
The Chase Savings account has a $5 monthly fee. In order to get it waived, you must meet one of the following qualifications each statement month:
- A $300 minimum balance at the beginning of every day.
- At least $25 in Autosave or other automatic recurring transfers from your Chase checking account.
- Have a Chase College Checking account linked to your savings account for overdraft protection.
- Have an account owner who is younger than 18 years old.
- Own one of the following checking accounts: Chase Premier Plus Checking, Chase Sapphire Checking, or Chase Private Client Checking.
You also incur a $5 fee each time you withdraw or transfer money out of your account after doing so six times. There is a limit of three such fees per month, for a total of $15. If you find yourself taking money out of your savings account more than six times per month, though, you probably shouldn’t have the money there in the first place.
The Chase Premier Savings account comes with a $25 monthly service fee that has stricter standards for getting it waived. Here are the two options for getting rid of this fee:
- $15,000 minimum balance at the beginning of every day
- Linked to a Premier Plus Checking or Chase Sapphire Checking account
The $5 fee on withdrawals or transfers in excess of six such actions is waived if you have $15,000 in your account at the time of the transfers.
How much can you earn?
Both Chase savings accounts offer an underwhelming APY. Over a 10-year period, an account that starts with a $5,000 balance and no additional deposits or withdrawals would only earn $5 with the standard account and just $10.01 with the Premier account’s higher rate.
Here’s an example of how much you could expect to earn in interest with each account, starting with a $5,000 deposit and no other transactions.
Such a dismal return is especially frustrating for customers given the recent action of the Federal Reserve. The nation’s central bank has hiked its short-term borrowing rate in March 2023 to a range of 4.50% to 4.75% in an effort to quash inflation. Heading into the year, the federal funds rate was more than four percentage points lower.
Banks often raise the yield on its savings products as the Fed raises rates, but Chase has not done so here.
How does Chase Bank compare to other banks
Chase Bank’s savings rates are quite low compared to other banks across the country.
The average national deposit rate for a savings account is 0.33%, according to the FDIC. Meanwhile it doesn’t take a ton of research to find better alternatives. Ally’s online savings account, to pick one example, offers customers a 3.40% APY.
While Chase doesn’t offer a competitive interest rate, it does allow folks to access these accounts easily, with no minimum opening deposit amount.
Other savings options at Chase Bank
In addition to traditional savings accounts, Chase Bank offers certificates of deposit (CDs) as an alternative low-risk savings option. Chase CDs last anywhere between one month and 10 years.
You get to lock in an interest rate for the entire period, but incur a penalty if you withdraw money before the CD matures. Rates range anywhere between 0.02% and 2.00%, as of March 1, 2023.
CDs are a good option for folks looking for a place to park their savings, while earning a decent interest rate for their trouble. The products make sense for a homeowner, for instance, who already has their down payment in tow and knows they won’t be buying for, say, a year.
However, those who think they may need their money earlier than a given CD term should either consider a no-penalty option, or simply park their cash in a savings account at another bank that offers a higher interest rate.
About Chase Bank
Chase Bank is headquartered in New York City, but operates branches in the lower 48 states; in fact, it’s the first bank to have branches in the entire contiguous U.S. It has over 4,700 branches and 16,000 ATMS across the country. Chase Bank’s parent company is JPMorgan Chase.
Frequently asked questions (FAQs)
Having multiple savings accounts can be a good idea, particularly if you have several savings goals. You can designate each account to one goal so you can easily track your progress. Otherwise, you might lose sight of how far along you are in meeting each goal.
Additionally, some savings accounts come with signup bonuses with your first deposit. As long as the terms and conditions make sense for your financials, such as making recurring deposits or maintaining a specific balance, it’s a low-effort way to boost your savings.
An interest rate on a savings account is the amount of money you earn for keeping your cash stored in that account. The rate is expressed as a percentage of your account balance for a one-year period. But it’s usually split up over 365 days, compounding daily or monthly based on your balance. (Chase savings accounts compound monthly.) At most banks, interest is applied to the account on a monthly basis.
While many people are stressed out by rising prices due to inflation, savings rates also tend to go up during these periods of time. The Federal Reserve has steadily been raising rates. While that makes it more expensive to borrow money, it also means that savings rates will go up for consumers as well. However, it’s still smart to shop around and compare rates to make sure you find a savings account with both the rates and features you want.
