Chase checking accounts do not pay interest
Most Chase checking accounts earn zero interest on the money you keep in them. This is true for their most common accounts: Chase Total Checking, Chase Premier Plus Checking, and Chase Sapphire Checking. The bank pays you nothing on your balance, no matter how much money sits in the account or how long it stays there.
This is normal across the banking industry. Most checking accounts at most banks pay no interest. Banks use the money you deposit to make loans and investments that earn them money — they keep that profit and pay you nothing in return. If earning interest on your deposits matters to you, you need to look at a different type of account, usually a savings account or money market account.
Key Takeaways
- Chase checking accounts pay zero interest on your balance, which is standard for checking accounts across the banking industry.
- Chase savings accounts and money market accounts do pay interest, though the rate changes based on what the Federal Reserve does with interest rates.
- The interest rate on Chase savings products varies by account type and changes monthly, so you can check the current rate on Chase's website.
- If you want to earn interest while keeping money easily available, a Chase savings account or money market account is a better choice than checking.
Why checking accounts don't pay interest
A checking account is designed for spending and paying bills, not for storing money long-term. You move money in and out frequently, write checks, use your debit card, and set up automatic payments. Banks expect checking accounts to turn over constantly.
Savings accounts work differently. You put money in and leave it there. Because the bank can count on having your money for longer periods, they pay you a small amount of interest as a trade-off. The longer the bank can use your money, the more they're willing to pay you for it.
Chase accounts that do pay interest
If you want to earn interest at Chase, you have two main options: a savings account or a money market account.
Chase Savings Account is the basic option. You can deposit money, withdraw it when you need it, and earn interest on whatever balance you hold. The interest rate is low — often less than 1% per year — but it's better than zero. The rate changes based on decisions made by the Federal Reserve, so it goes up and down over time.
Chase Money Market Account combines features of checking and savings. You can write checks and use a debit card like a checking account, but you also earn interest like a savings account. The interest rate is usually slightly higher than the savings account rate, but there are often limits on how many withdrawals you can make per month.
How to find the current interest rate
Chase publishes its current interest rates on its website. Go to chase.com, find the page for the specific account type you're interested in (Savings Account or Money Market Account), and look for the Annual Percentage Yield, or APY. This is the actual percentage of interest you'll earn in a year.
The rate you see online is the rate for new accounts opened today. If you already have a Chase savings or money market account, your rate may be different — usually lower. Chase can change rates at any time, and they do, typically when the Federal Reserve changes its benchmark interest rate.
Interest is usually added to your account monthly. If your APY is 0.01% and you have $10,000 in the account, you'd earn roughly $1 per year, added in small monthly amounts. The actual amount depends on the exact balance each day and the exact rate on the day the interest is calculated.
When a checking account might make sense anyway
Even though Chase checking accounts pay no interest, they may still be the right choice for your main spending account. You need a place to receive paychecks, pay bills, and access cash. A checking account does all of that. Trying to do your daily spending from a savings account is inconvenient and often violates the account's rules.
A common strategy is to use both: keep a checking account for spending and bills, and a separate savings account for money you're not spending right now. Move money from savings to checking as you need it. This way you earn a small amount of interest on the money you're not using when ready, while keeping your spending money easily available.
Other banks that pay interest on checking
Some online banks and credit unions do pay interest on checking accounts, though the rates are still usually low. These are typically banks without physical branches, which means lower costs for them, so they can afford to pay a bit more. If earning interest on checking is important to you, you could research online banks or ask your local credit union what they offer.
The trade-off is usually convenience. Online banks have no branches to visit, no tellers to talk to, and no way to deposit cash except through ATMs or mobile check deposit. For many people, the tiny amount of interest isn't worth the loss of in-person service. But if you do most of your banking on your phone anyway, an online bank might work well for you.
Frequently Asked Questions
Does Chase pay interest on checking if I keep a high balance?
No. Chase checking accounts pay zero interest regardless of how much money you have in them. The amount of your balance makes no difference. If you want to earn interest, you need to move money to a savings account or money market account.
What's the difference between APY and interest rate?
APY stands for Annual Percentage Yield. It's the total percentage of interest you'll earn in one year, including the effect of interest being added to your account and then earning interest itself. The interest rate is the base percentage. For most savings accounts, the difference is small, but APY is the number that matters for comparing accounts.
Can I move money between my Chase checking and savings account easily?
Yes. If you have both accounts at Chase, you can transfer money between them online, through the mobile app, or by calling Chase. Transfers between your own accounts are free and usually happen when ready or within one business day. This makes it straightforward to keep spending money in checking and let the rest earn interest in savings.
Will Chase checking interest rates go up if the Federal Reserve raises rates?
Chase checking accounts will still pay zero interest — there's nothing to go up. However, if you have a Chase savings account or money market account, the interest rate on those accounts usually increases when the Federal Reserve raises its benchmark rate. The timing and amount of the increase varies and is up to Chase.
Is there a Chase checking account that pays any interest at all?
No. None of Chase's checking accounts pay interest. If you want to earn interest at Chase, you must use a savings account or money market account. Some other banks offer checking accounts with interest, but Chase does not.