Most Chase checking accounts do not pay interest
Chase's standard checking accounts — the ones most people open — pay zero interest on the money you keep in them. This includes the Chase Total Checking account, which is their most common option. Your balance just sits there without earning anything, no matter how much money you have or how long you leave it there.
Chase does offer one checking account that pays a small amount of interest: the Chase Premier Plus Checking account. But this account has requirements that make it impractical for most people, which we'll explain below. For the vast majority of Chase customers, the answer is straightforward: your checking account will not earn interest.
Key Takeaways
- Chase Total Checking and most other Chase checking accounts pay zero interest on your balance.
- Chase Premier Plus Checking does pay interest, but requires you to maintain a very high balance and meet other conditions to earn anything.
- Interest rates on checking accounts are generally very low across all banks, usually less than one percent per year.
- If earning interest on your money is important to you, a savings account or money market account typically pays more than any checking account.
Why checking accounts usually don't pay interest
Banks use the money you deposit in your checking account to make loans and investments that earn them profit. In exchange, they give you a place to store your money safely and the ability to withdraw it whenever you need it. The convenience and safety are what you're paying for with a checking account — not interest earnings.
Interest-bearing accounts like savings accounts exist specifically to reward you for leaving money untouched for longer periods. Checking accounts are designed for frequent deposits and withdrawals, so banks don't offer interest on them. This is true at Chase and at virtually every other bank in the country.
Chase Premier Plus Checking: the exception with a catch
Chase does offer the Premier Plus Checking account, which pays interest. However, the requirements are steep. You must maintain a minimum balance of $25,000 to earn any interest at all. If your balance drops below that, you earn nothing and may face a monthly fee.
Even when you do meet the balance requirement, the interest rate is very low — typically less than 0.01 percent per year. On a $25,000 balance, that would earn you roughly $2.50 per year. You also need to have a Chase investment account or meet other conditions to avoid monthly fees. For most people, the effort and cost of maintaining this account outweigh the tiny amount of interest earned.
How interest rates on checking accounts compare
Chase's interest rates on checking accounts are similar to what other large banks offer. Bank of America, Wells Fargo, and Citibank also pay little to no interest on standard checking accounts. Some smaller banks and online banks do offer slightly higher rates on checking accounts, but even those are usually under 0.5 percent per year.
The reason rates are so low across the industry is that the Federal Reserve sets a baseline interest rate that affects what all banks can offer. When that rate is low, checking account interest rates stay low too. This has been the case for several years, making checking accounts a poor place to earn money on your savings.
Where to earn more interest on your money at Chase
If you want your money to earn interest while staying at Chase, you have better options than checking. Chase savings accounts pay more interest than checking accounts, though the rate still varies based on how much money you deposit and current market conditions. Chase also offers money market accounts, which typically pay higher interest than savings accounts but may require a larger minimum balance.
Before opening any of these accounts, check Chase's website or call a branch to ask about current interest rates. Rates change frequently and vary by location and account type. You can also compare Chase's rates to other banks to see whether staying with Chase makes sense for your savings goals.
What to do if you want interest on your checking balance
If you need to keep money in a checking account because you use it regularly, you won't earn meaningful interest anywhere. The tradeoff of a checking account is liquidity — the ability to access your money when ready — rather than earnings. Accept that checking is for spending and moving money, not for growing it.
A practical approach is to keep only what you need for monthly expenses in checking, and move extra money to a savings account or money market account at Chase or another bank. This way you earn interest on the money you're not spending while keeping enough in checking for bills and everyday purchases. Many people set up automatic transfers to make this easier.
Frequently Asked Questions
Does Chase Total Checking pay any interest?
No. Chase Total Checking pays zero interest on your balance. The account is designed for convenient access to your money, not for earning returns. If interest is important to you, you would need to move money to a Chase savings account or money market account.
What is the interest rate on Chase Premier Plus Checking?
The rate varies and changes based on market conditions, but it is typically less than 0.01 percent per year. You must maintain a $25,000 minimum balance to earn any interest. Even at that balance, the annual earnings would be just a few dollars.
Can I earn interest on a Chase checking account without a high balance requirement?
No. Chase's only interest-bearing checking account is Premier Plus, which requires $25,000. All other Chase checking accounts pay zero interest regardless of your balance. If you want interest without a high minimum, a Chase savings account is a better choice.
Why don't banks pay interest on checking accounts?
Checking accounts are meant for frequent deposits and withdrawals, while interest is typically paid on money left untouched for longer periods. Banks use checking deposits to fund loans and investments that earn them profit, so they don't need to pay you interest to keep your money there.