Chase does not offer a dedicated high-yield savings account
Chase's standard savings accounts earn interest rates well below what other banks offer. As of now, Chase's regular savings account pays around 0.01% annual percentage yield (APY), which means $10,000 sitting in the account for a year earns roughly $1 in interest. That rate has not changed materially in years.
Chase does offer a Chase Savings Bank product through a separate subsidiary, but this is not widely promoted and has limited availability. Even when available, the rates remain low compared to online banks and credit unions that specialize in savings products.
If you are a Chase customer looking for better returns on money you are not spending when ready, you have two realistic paths: move the money to a different institution, or keep it at Chase and accept the lower rate in exchange for convenience and integration with your checking account.
Key Takeaways
- Chase's standard savings account earns approximately 0.01% APY, which generates minimal interest even on large balances.
- Chase Savings Bank exists but is not a high-yield product and has limited availability to most customers.
- Online banks and credit unions currently offer rates between 4% and 5% APY on savings accounts, a significant difference over time.
- Keeping money at Chase makes sense if you value having all accounts in one place, but not if interest earnings are your priority.
Why Chase's rates lag behind other banks
Chase is a large brick-and-mortar bank with thousands of branches and ATMs. That physical infrastructure costs money. Online-only banks have no branches, no tellers, and no retail locations, so they can pass savings to customers through higher interest rates.
Chase's business model also depends on lending money out at higher rates than it pays depositors. When Chase pays you 0.01% on savings but charges 18% to 24% on credit card balances, the spread is enormous. High-yield savings accounts narrow that spread, which is why Chase does not prioritize them.
The Federal Reserve's interest rate decisions affect all banks, but they affect the incentive structure differently. When rates are high, banks compete harder for deposits by raising savings rates. When rates are low, banks have less reason to compete. Chase's strategy has been to rely on customer convenience rather than rate competition.
What you actually earn at Chase versus alternatives
| Bank Type | Account Type | Approximate APY | Interest on $10,000 per year |
|---|---|---|---|
| Chase (large bank) | Standard Savings | 0.01% | $1 |
| Online bank | High-Yield Savings | 4.5% to 5.0% | $450 to $500 |
| Credit union | Share Savings | 3.5% to 4.5% | $350 to $450 |
The difference compounds over time. If you keep $50,000 in a Chase savings account for five years, you earn roughly $25 in interest. The same $50,000 in a 4.5% account earns $11,250 over five years. That is not a small gap.
The catch with online banks is that you cannot walk into a branch or speak to someone in person. Deposits happen through transfers or mobile check deposit. Withdrawals require an ATM network or a transfer back to another bank. For many people, that trade-off is worth it. For others, the convenience of Chase's branches matters more than the interest rate.
How to move money out of Chase if you want higher rates
You do not have to close your Chase account to move savings elsewhere. Many people keep a Chase checking account for everyday spending and bill payments, then move money they want to save to a high-yield account at another bank.
The process is straightforward: open an account at an online bank or credit union, then transfer money from your Chase account to the new account using an external transfer. This takes one to three business days. You can set up recurring transfers if you want to move money regularly.
Some people use a hybrid approach: keep three to six months of expenses in a Chase checking account for when ready access, then move anything beyond that to a high-yield savings account elsewhere. This gives you the convenience of Chase for daily banking and the interest earnings of a better rate for money you are not touching.
Chase Money Market accounts and certificates of deposit
Chase offers Money Market accounts and Certificates of Deposit (CDs) in addition to savings accounts. Money Market accounts pay slightly higher rates than savings accounts but still lag far behind online alternatives. CDs lock your money away for a set term (three months, six months, one year, five years) in exchange for a fixed rate.
Chase CD rates vary by term length and change based on market conditions. A one-year CD at Chase might pay 4% to 4.5% APY, which is competitive with some online banks. However, online banks often offer similar or better CD rates with more flexibility on term lengths.
The key difference is that CDs penalize you for withdrawing early. If you lock money in a Chase CD for one year and need it after six months, you pay an early withdrawal penalty that can erase months of interest. This makes CDs suitable only for money you genuinely will not need before the maturity date.
When it makes sense to keep savings at Chase
Chase makes sense for savings if you value having everything in one place and do not mind earning minimal interest. This applies to people who use Chase for checking, credit cards, and loans, and want a single dashboard to see all their accounts.
It also makes sense if you need frequent access to your money and want to avoid the one- to three-day transfer delays that come with moving money between banks. If you are building an emergency fund and might need to withdraw at any moment, the convenience of a Chase branch or ATM might outweigh the interest rate difference.
For money you are saving for a specific goal more than a few months away, or money you will not touch for years, the interest rate difference becomes significant enough that moving it elsewhere usually makes financial sense.
Frequently Asked Questions
Can I earn interest on my Chase checking account?
Chase checking accounts earn no interest. Some banks offer interest-bearing checking, but Chase does not. If you want interest earnings, you need a separate savings, Money Market, or CD account, whether at Chase or elsewhere.
Does Chase offer any promotional rates on savings accounts?
Chase occasionally runs promotions offering higher rates for new savings accounts, but these are temporary and typically last three to six months before dropping back to standard rates. Check Chase's website or ask in a branch if a promotion is currently running.
What happens to my Chase savings if I move to another bank?
Your Chase account stays open and earns interest at Chase's rate unless you close it. You can keep it open indefinitely with no minimum balance requirement. Moving money to another bank does not affect your Chase account in any way.
Are there any fees on Chase savings accounts?
Chase does not charge monthly maintenance fees on savings accounts. However, some savings products have minimum balance requirements, and exceeding certain withdrawal limits can trigger fees. Read the account terms before opening.
How do I transfer money from Chase to a high-yield savings account?
Log into your Chase account online, go to the transfer section, and select "transfer to another bank." You will need the routing number and account number of the receiving bank. The transfer typically takes one to three business days to complete.