What Chase offers in high-yield savings
Chase does not have a single product called a "high-yield savings account." Instead, Chase offers a savings account with a variable interest rate that changes based on market conditions and Chase's own decisions. The rate is typically lower than what you would find at online banks or credit unions that specialize in high-yield products.
If you want a savings account through Chase, you have two main options: the Chase Savings Account and the Chase Premier Savings Account. Both earn interest, but neither is marketed as "high-yield" because the rates are modest compared to other banks. The Premier version requires a higher opening balance and offers a slightly better rate in exchange.
The reason Chase's rates are lower is straightforward: Chase is a large branch-based bank with physical locations, staff, and overhead costs. Online banks and smaller institutions can offer higher rates because they have fewer expenses to cover.
Key Takeaways
- Chase offers savings accounts that earn interest, but the rates are typically lower than accounts labeled "high-yield" at other banks.
- Chase Premier Savings requires a higher opening deposit but pays a slightly better rate than the standard Chase Savings Account.
- If earning the highest possible interest is your main goal, you may find better rates at online banks or credit unions.
- Chase savings accounts make sense if you want to keep your money in one place with your checking account and use Chase branches.
Chase Savings Account versus Chase Premier Savings
The Chase Savings Account is the basic option. It requires a $25 minimum opening deposit and has no monthly maintenance fee. The interest rate is set by Chase and changes without notice, so you should check the current rate on Chase's website before opening.
The Chase Premier Savings Account requires a $25,000 opening deposit and is designed for customers with larger balances. It pays a higher interest rate than the standard savings account, but you must maintain the $25,000 minimum or you will be moved to the regular savings account and lose the higher rate.
Both accounts let you make up to six withdrawals per month without penalty. After six, Chase charges a fee for each withdrawal. This is a federal rule that applies to most savings accounts, though some banks have removed this limit.
How Chase savings rates compare
Chase's savings rates are typically between 0.01% and 0.05% annually, depending on which account you hold and current market conditions. A "high-yield" savings account at another bank might pay 4% to 5% annually, which is 80 to 500 times more interest on the same balance.
The difference matters most if you are saving a large amount. On $10,000, the difference between 0.01% and 4.5% is roughly $450 per year. On $1,000, it is roughly $45 per year. The larger your balance, the more sense it makes to shop around for a higher rate.
Chase's rates are published on their website and change at Chase's discretion. You can check the current rate before you open an account, but understand that the rate may drop after you deposit your money.
Why someone might choose Chase savings anyway
Even though Chase does not offer the highest rates, some people choose Chase savings because they already have a Chase checking account and want everything in one place. You can move money between your checking and savings when ready through the Chase app or website, and you have access to Chase branches and ATMs nationwide.
If you use Chase for checking and rarely move money out of savings, the convenience of one bank may outweigh the cost of a lower interest rate. If you are saving for a specific goal and plan to leave the money untouched for years, the rate difference becomes more important.
Chase also offers Chase find Banking, a checking and savings package for people new to banking or rebuilding credit. The savings account in that package earns interest, though again at a modest rate.
Where to find higher rates if you want them
Online banks such as Marcus, Ally, and Discover typically offer savings rates between 4% and 5% annually. Credit unions often offer competitive rates as well, especially if you are a member. You can compare current rates on websites that track savings accounts across multiple banks.
The trade-off is that online banks have no physical branches. You deposit money by transferring it from another account or by mailing a check. Withdrawals happen the same way. If you need to walk into a branch to deposit cash or speak to someone in person, an online bank is not practical.
Some people keep a high-yield savings account at an online bank for long-term savings and a Chase savings account for money they need to access quickly through a branch or ATM.
How to open a Chase savings account
You can open a Chase savings account online, through the Chase app, or at a Chase branch. You will need a government-issued ID, your Social Security number, and an initial deposit (minimum $25 for the standard account, $25,000 for Premier). If you already have a Chase checking account, opening savings takes just a few minutes in the app.
Once your account is open, you can deposit money by transferring it from another bank account, depositing a check through the app, or depositing cash at a Chase ATM or branch. Interest is calculated daily and deposited into your account monthly.
Frequently Asked Questions
Can I move money between my Chase checking and savings account?
Yes. You can transfer money between them when ready through the Chase app, website, or at a branch. There is no fee for moving money between your own accounts at Chase.
What happens if my balance drops below $25,000 on a Premier Savings account?
Chase will move your account to a standard savings account and you will no longer earn the higher Premier rate. You can move back to Premier if you deposit enough to reach $25,000 again.
Is my money safe in a Chase savings account?
Yes. Chase is a member of the Federal Deposit Insurance Corporation (FDIC), which means deposits up to $250,000 per account type are protected if the bank fails. Your savings account is a separate account type from your checking account, so each is insured up to $250,000.
Can I withdraw money whenever I want?
You can make up to six withdrawals per month without penalty. After six, Chase charges a fee for each additional withdrawal. This is a federal rule, though some banks have stopped enforcing it.
How often does Chase change the interest rate?
Chase can change the rate at any time without notice. The rate typically moves when the Federal Reserve changes its benchmark interest rate, but Chase may also change it independently. Check Chase's website to see the current rate on your account.