Chase savings accounts work best if you keep a high balance or use other Chase products, but the interest rate is low compared to online banks
A Chase savings account is a standard deposit account where your money sits in a bank vault (or more accurately, in Chase's systems) and earns interest. Chase offers several versions: the basic savings account, the Premier Savings account for larger balances, and the Chase find Savings account for people rebuilding credit. The core trade-off is straightforward: Chase has branches everywhere and integrates with checking accounts you might already have there, but it pays less interest than banks that exist only online.
Whether it is a good choice depends on what you actually use it for. If you keep $25,000 or more in the account, the Premier Savings tier waives the monthly fee and gives you a slightly higher rate. If you keep less and do not maintain a minimum balance, you pay $5 per month. That $60 per year in fees can wipe out the interest you earn on smaller balances, which is why the math breaks differently for different people.
Key Takeaways
- Chase savings accounts charge a $5 monthly fee unless you keep a $25,000 minimum balance or link them to a Chase checking account with direct deposit.
- Interest rates on Chase savings accounts are lower than online-only banks typically offer, so the account costs you money in foregone earnings if you are comparing rates.
- The real value of a Chase savings account is convenience: one login for checking and savings, branch access, and the ability to move money between accounts when ready.
- If you keep less than $25,000 and do not have a Chase checking account, an online savings account will earn you more interest with no monthly fees.
How much interest you actually earn
Chase savings accounts earn interest, but the rate changes based on what the Federal Reserve does with its benchmark rate. As of early 2024, Chase's basic savings account earns a rate that is roughly one-quarter to one-third of what online banks like Marcus, Ally, or Discover offer. If you keep $10,000 in a Chase savings account, you might earn $50 to $100 per year in interest. The same $10,000 at an online bank could earn $400 to $500 per year.
The Premier Savings account pays a higher rate, but only if your balance stays above $25,000. Once you drop below that, you lose the rate bump and pay the monthly fee. Chase does not advertise the exact rate on its website in a way that is straightforward to compare; you have to log in or call to see what you would actually earn.
When the monthly fee disappears
The $5 monthly fee is waived if you meet any one of these conditions: keep a $25,000 minimum balance, link the account to a Chase checking account that receives direct deposit, or maintain a combined balance of $25,000 across all your Chase deposit accounts. Most people avoid the fee by having a checking account with Chase and getting their paycheck deposited there.
If you do not have direct deposit and your balance drops below $25,000, you pay the fee every month. Over a year, that is $60 in fees. On a $5,000 balance earning 4% interest at an online bank, you would make roughly $200 in interest. At Chase, you might earn $50, then lose $60 to fees, leaving you $10 in the red.
The real reason people keep Chase savings accounts
The interest rate is not why most people use Chase savings accounts. They use them because they already have a Chase checking account, and moving money between the two takes seconds. You see both balances on one screen, transfer funds when ready, and do not have to manage logins to different banks. If you need cash, you can walk into a Chase branch and withdraw from savings without waiting for a transfer.
This convenience has a cost. You are paying for the ability to see everything in one place and access branches. If you value that convenience and keep a high enough balance to avoid fees, it makes sense. If you are trying to maximize interest on money you do not touch often, it does not.
How Chase savings compares to other banks
| Account Type | Monthly Fee | Minimum Balance to Waive Fee | Interest Rate Range (as of early 2024) |
|---|---|---|---|
| Chase Savings | $5 | $25,000 or direct deposit to Chase checking | 0.01% to 0.05% |
| Chase Premier Savings | $5 | $25,000 | 0.05% to 0.10% |
| Online savings (Marcus, Ally, Discover) | $0 | None | 4.0% to 5.0% |
| Credit union savings | $0 to $5 | Varies | 0.5% to 2.0% |
Online banks have no branches, which means you cannot walk in and withdraw cash. But you can transfer money to your checking account (usually within one business day) or use an ATM network. The trade-off is worth it if you are saving money you do not need to touch often. If you need to access your savings in person or want everything in one place, Chase makes sense despite the lower rate.
What happens to your money if Chase fails
Chase is a large, stable bank, but your deposits are protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type per bank. This means if Chase were to fail, the government would reimburse you up to that limit. A savings account is a separate account type from a checking account, so you get $250,000 protection on each. This protection exists at every bank, including online banks, so it is not a reason to choose Chase over a competitor.
Frequently Asked Questions
Can I avoid the $5 monthly fee without direct deposit?
Yes, if you keep a $25,000 minimum balance in the account itself, or if you maintain $25,000 across all your Chase deposit accounts combined (checking, savings, money market). You can also avoid the fee by linking the savings account to a Chase checking account that receives direct deposit, even if the direct deposit goes to the checking account, not the savings account.
Should I move my savings from Chase to an online bank?
If you keep less than $25,000 and do not have a Chase checking account, moving to an online bank will earn you significantly more interest with no monthly fees. If you already have a Chase checking account and use it regularly, the convenience of one login and when ready transfers might be worth the lower rate. The math depends on your balance and how often you access the money.
What is the difference between Chase Savings and Chase Premier Savings?
Premier Savings requires a $25,000 minimum balance and pays a slightly higher interest rate. Regular Chase Savings has the same $25,000 minimum to waive the fee, but the rate is lower. If you may have access to for Premier Savings, the higher rate is marginal — often just 0.05% more — so the difference in earnings is small unless your balance is very large.
Can I use a Chase savings account as an emergency fund?
Yes, but it is not the best choice if you are comparing rates. A savings account is designed to hold money you might need quickly without penalty. Chase lets you withdraw anytime, but an online savings account would earn you more interest on the same balance. If you want everything with Chase for simplicity, the account works fine for an emergency fund — just know you are trading earnings for convenience.
Do I need a Chase checking account to open a savings account?
No, you can open a Chase savings account on its own. However, if you do not have a Chase checking account with direct deposit, you will pay the $5 monthly fee unless you keep $25,000 in the savings account. Most people find it makes sense to open both accounts together to waive the fee.