Chase does not offer a traditional high yield savings account
Chase's standard savings accounts earn interest rates well below what you can find elsewhere. As of now, Chase savings accounts earn around 0.01% annual percentage yield (APY) on most balances — meaning $10,000 in a Chase savings account earns roughly $1 per year in interest. Banks that specialize in online savings, by contrast, often offer rates between 4% and 5% APY on the same $10,000, which would earn $400 to $500 per year.
Chase does offer one account that pays more: the Chase Savings Account with relationship rates. If you maintain a Chase checking account and meet certain balance requirements, you may may have access to for a higher rate on savings. However, even these relationship rates typically fall short of what independent online banks offer, and the exact rate depends on your account type and the amount you keep on deposit.
The reason Chase's rates stay low is structural. Chase operates thousands of physical branches and employs thousands of staff. Those costs get passed along as lower interest rates on deposits. Online-only banks have far fewer expenses, so they can afford to pay you more to keep your money with them.
Key Takeaways
- Chase standard savings accounts earn around 0.01% APY, which is significantly lower than rates offered by online banks.
- Chase does offer slightly higher rates through relationship pricing if you maintain a checking account and meet balance thresholds, but these still typically lag behind online alternatives.
- The difference in earnings is substantial: $10,000 at Chase might earn $1 per year, while the same amount at an online bank could earn $400 to $500 annually.
- If you want high yield savings, you will need to open an account at a different bank, though you can keep your Chase checking account for everyday banking.
Why Chase rates are lower than online banks
Chase's business model depends on physical locations. The bank maintains branches in most neighborhoods, staffs them during business hours, and invests in technology to support in-person banking. All of that costs money. To cover those costs while still making a profit, Chase keeps the interest it pays on deposits low.
Online banks like Marcus, Ally, or American Express Personal Savings have no branches and no tellers. They operate from a handful of data centers and customer service call centers. Because their overhead is a fraction of Chase's, they can afford to pay you 4% or 5% on savings and still be profitable.
This is not a sign that Chase is poorly run or unfair — it is straightforward how the two business models work. If you value the ability to walk into a branch and speak to someone in person, you are paying for that convenience partly through lower interest rates. If you do not need branches, you can earn significantly more elsewhere.
Chase relationship rates and how to may have access to
Chase offers higher savings rates if you meet two conditions: you must have an active Chase checking account, and you must maintain a minimum balance in either checking or savings. The exact threshold varies by account type. For example, some Chase checking accounts require a $500 minimum balance to unlock relationship pricing on savings.
Even when you may have access to, the rate is still modest. Chase relationship rates on savings typically range from 0.01% to around 0.05% APY depending on your account tier — still far below what online banks offer. You would need to check with your local Chase branch or log into your online account to see what rate you currently may have access to for, since it depends on your specific account combination.
The relationship rate structure exists because Chase wants to reward customers who keep multiple accounts with them. However, the financial benefit is small compared to moving your savings to a dedicated high yield account elsewhere.
When it makes sense to keep savings at Chase anyway
Even though Chase does not offer competitive interest rates, some people keep savings there for reasons beyond earning interest. If you use Chase for checking and prefer having all your accounts in one place, the convenience might outweigh the lower rate — especially if you are saving a small amount or only keeping money there temporarily.
Chase also offers FDIC insurance up to $250,000 per account type, the same as any other bank. Your money is equally safe at Chase as it is at an online bank. The difference is purely in how much interest you earn.
Another reason some people keep savings at Chase is access to branches. If you need to deposit cash or handle banking in person regularly, Chase's physical presence might be worth the lower rate to you. You could split your strategy: keep a small emergency fund at Chase for straightforward access, and move larger savings to a high yield account elsewhere.
How to find a high yield savings account outside Chase
If you decide to move your savings, you have several options. Online banks like Marcus (owned by Goldman Sachs), Ally Bank, American Express Personal Savings, and Discover Bank all offer high yield savings accounts with rates currently between 4% and 5% APY. Credit unions sometimes offer competitive rates as well, though you typically need to be a member or meet other requirements to open an account.
Opening an account at another bank does not require you to close your Chase checking account. You can keep Chase for everyday spending and bill payments, and use the other bank purely for savings. Money transfers between banks take one to two business days through ACH (Automated Clearing House), which is the standard electronic transfer system.
When comparing banks, look at the current APY rate, whether the rate is may provide or variable (most high yield rates are variable and can change), and whether there are any fees for maintaining the account. Most online savings accounts have no monthly fees and no minimum balance requirements.
Moving money between Chase and another bank
Once you open a high yield savings account elsewhere, transferring money from Chase is straightforward. You can initiate an ACH transfer from your Chase account to the new bank, or from the new bank to Chase. ACH transfers are free and typically take one to two business days to complete.
To set up a transfer, you will need the routing number and account number of the account you are sending money to. Your Chase account number appears on your debit card and statements. The routing number for Chase varies by region but is straightforward to find through Chase's website or by calling customer service.
Some people move their savings gradually, transferring a portion each month to test the new bank before committing fully. Others move everything at once. Either approach works — there is no penalty for moving money between banks.
Frequently Asked Questions
Can I earn more interest by putting money in a Chase Money Market Account instead of savings?
Chase Money Market Accounts typically earn rates similar to or only slightly higher than savings accounts — still well below online high yield rates. The main difference is that Money Market Accounts usually require a higher minimum balance and may limit how many withdrawals you can make per month. For interest earnings, an online savings account will serve you better.
What if I keep a large balance at Chase — does that unlock better rates?
Chase does not offer tiered interest rates based on balance size the way some banks do. Your rate is determined by your account type and whether you have a may have access to checking account. A $100,000 balance earns the same rate as a $1,000 balance in the same account type.
Is my money safer at Chase than at an online bank?
No. Both Chase and online banks are FDIC-insured, meaning deposits up to $250,000 per account type are protected by the federal government if the bank fails. Safety is equal. The only difference is the interest rate you earn.
Do I need to close my Chase account to open a high yield savings account elsewhere?
No. You can keep your Chase checking account and open a savings account at another bank simultaneously. Many people do this — they use Chase for checking and bill payments, and keep savings at a bank with higher rates.
How often do high yield savings rates change?
High yield rates are variable, meaning banks can change them at any time. Rates have moved frequently over the past few years as the Federal Reserve adjusted its benchmark rate. When you open an account, ask whether the current rate is may provide for any period, though most banks do not may provide rates long-term.