Chase offers high-yield savings, but the rates are lower than many online banks
Chase does offer a high-yield savings account called the Chase Savings Account with Chase Preferred Checking. However, the interest rate Chase pays is typically lower than what you will find at online-only banks or credit unions. As of now, Chase's rate changes frequently and varies based on market conditions — you can check the current rate on Chase's website or by calling 1-800-935-9935.
The reason Chase's rates are lower is straightforward: Chase is a large brick-and-mortar bank with thousands of branches and ATMs. Those physical locations cost money to run. Online banks have no branches, so they can pass higher interest rates to customers. If earning the highest possible interest is your main goal, an online bank may serve you better. If you value having a local branch and an ATM on every corner, Chase's rate may be the trade-off you accept.
Key Takeaways
- Chase offers high-yield savings through its Chase Savings Account paired with Chase Preferred Checking, but the rate is typically lower than online banks offer.
- You must maintain a Chase Preferred Checking account to earn the higher rate on savings — you cannot open the savings account alone.
- Chase's rate changes with market conditions and is published on their website; comparing it to online banks before opening an account will show you the difference in earnings.
- Chase savings accounts come with FDIC insurance up to $250,000, the same protection you get at any bank.
What you need to open a Chase high-yield savings account
To open a Chase high-yield savings account, you must first open a Chase Preferred Checking account. Chase does not let you open the savings account by itself. The checking account requires a minimum opening deposit — the amount changes, so confirm the current requirement when you explore.
You will need a government-issued photo ID, your Social Security number, and proof of your current address (a recent utility bill, lease, or bank statement). If you are opening the account in person at a branch, bring these documents with you. If you open online, you will upload images of your ID and address proof.
Once your checking account is open, you can then open the savings account linked to it. The savings account itself typically has no minimum balance requirement, though Chase may change this — ask when you open the checking account.
How the interest rate works and when you earn it
Chase pays interest on the balance in your savings account. The rate is Annual Percentage Yield (APY), which means the total amount you earn over one year if you leave the money untouched. Chase compounds interest daily, meaning they calculate what you have earned and add it to your account every day, so you earn interest on your interest.
For example, if you have $10,000 in the account and Chase's APY is 4.35%, you would earn roughly $435 over the year (the exact amount depends on daily compounding). That $435 is added to your account automatically — you do nothing.
The rate Chase advertises is the same for all customers. You do not earn a higher rate by keeping more money in the account or by meeting other conditions. However, Chase can change the rate at any time, and they usually do when the Federal Reserve changes its benchmark interest rate.
Comparing Chase to online banks and credit unions
Online banks like Marcus, Ally, and American Express Personal Savings often offer rates 0.5% to 1% higher than Chase. On a $10,000 balance, that difference means $50 to $100 more per year. On $100,000, it means $500 to $1,000 more per year. The gap widens the longer you keep money in savings.
Credit unions also frequently offer competitive rates, sometimes matching or beating online banks. If you are a member of a credit union, check their savings rate before opening a Chase account. Many credit unions have no branch requirement — you can join online and manage your account entirely by phone or computer.
The trade-off is convenience. Chase has 4,700+ branches and 16,000+ ATMs in the United States. If you need to deposit cash, withdraw cash, or speak to someone in person, Chase's network is hard to beat. Online banks have no branches, so you deposit by mail or mobile app and withdraw from any ATM that accepts your debit card (though some charge a fee).
Fees and account rules
Chase does not charge a monthly maintenance fee on the savings account itself. However, the checking account you must open to get the savings account may have a monthly fee — currently $12 per month — unless you meet one of the waiver conditions. Those conditions typically include maintaining a minimum balance, setting up direct deposit, or using your debit card a certain number of times per month. Ask about the current waiver options when you open the account.
You can withdraw money from your savings account without penalty. Federal law used to limit savings withdrawals to six per month, but that rule was suspended in 2020 and has not been reinstated. You can move money between your Chase checking and savings accounts as often as you need.
If your balance falls below zero or you overdraw, Chase will charge an overdraft fee on the checking account (not the savings account). The fee amount varies but is typically $35 per overdraft. You can opt out of overdraft protection to avoid these fees, though then transactions may be declined instead.
How FDIC insurance protects your money
Your money in a Chase savings account is protected by FDIC insurance up to $250,000. FDIC stands for Federal Deposit Insurance Corporation, a government agency that guarantees deposits at member banks. If Chase were to fail, the FDIC would pay you back up to $250,000 of your savings account balance.
This protection applies to each account type separately. Your savings account is insured up to $250,000, and your checking account is insured up to $250,000 — so together you can have up to $500,000 protected at Chase. If you have multiple savings accounts at Chase, they are added together and covered by one $250,000 limit.
FDIC insurance is automatic — you do not need to do anything to set up it. Every bank that accepts deposits is required to carry it or carry equivalent insurance through another agency.
Alternatives if Chase's rate is too low
If you want a higher interest rate and do not need a physical branch, online banks are your best option. Marcus by Goldman Sachs, Ally Bank, and American Express Personal Savings are all FDIC-insured and typically offer rates 0.5% to 1% higher than Chase. You can open an account entirely online in minutes.
If you want both a high rate and local service, check your local credit union. Credit unions are member-owned and often offer competitive rates on savings. Many have joined shared branching networks, meaning you can visit other credit union branches even if your own credit union has no local branch.
You can also split your money between accounts. Keep your everyday spending money in Chase checking (for the branch access), keep your emergency fund in an online bank (for the higher rate), and use Chase savings for money you want to access quickly but do not need to earn the absolute highest rate on.
Frequently Asked Questions
Can I open just a savings account without the checking account?
No. Chase requires you to open a Chase Preferred Checking account first. You cannot open the high-yield savings account on its own. If you do not want a checking account, an online bank or credit union may be a better fit.
What is the current interest rate at Chase?
Chase's rate changes frequently and is not listed in this guide. Visit chase.com, call 1-800-935-9935, or visit a local branch to see the current rate. Compare it to rates at online banks and credit unions before deciding.
Is my money safe in a Chase savings account?
Yes. Chase is FDIC-insured, meaning your deposits up to $250,000 are protected by the federal government. Your money is as safe at Chase as at any other FDIC-insured bank.
Can I move money between my Chase checking and savings accounts without a fee?
Yes. You can transfer money between your Chase checking and savings accounts as many times as you want with no fee. Transfers between Chase accounts are when ready.
What happens if I need to withdraw a large amount of cash?
You can withdraw cash from any Chase ATM or at any Chase branch with no limit. If you need more than a few thousand dollars, call ahead so the branch can have enough cash on hand.