What a Chase savings account costs and what it pays
A Chase savings account is worth it if you keep a high balance, rarely withdraw money, or already bank with Chase for checking. If you have less than $500 sitting around or you move money frequently, you will earn almost nothing and may pay monthly fees that eat what little interest you do earn.
Chase offers several savings products. The most common is the Chase Savings Account, which charges a $5 monthly maintenance fee unless you maintain a $300 minimum balance or have a Chase checking account linked to it. The interest rate varies by location and account type, but as of early 2024 ranges from 0.01% to 0.05% annual percentage yield (APY) on balances under $25,000. That means on $1,000, you earn roughly $0.10 to $0.50 per year—less than a dollar.
Chase also offers a Chase Premier Savings Account, which requires a $25,000 minimum balance and pays a slightly higher rate, typically 0.05% to 0.10% APY depending on your location. On $25,000, that's $12.50 to $25 per year. There is no monthly fee if you meet the minimum.
Key Takeaways
- Chase savings accounts pay very low interest rates—often under 0.05% APY—so you earn almost nothing on your money compared to online banks.
- The $5 monthly fee applies unless you keep $300 in the account or have a Chase checking account, which can wipe out any interest you earn.
- A Chase savings account makes sense only if you already use Chase for checking, want the convenience of one bank, or need a place to park money temporarily.
- Online savings banks typically pay 4% to 5% APY, meaning you earn 50 to 100 times more interest on the same balance at Chase.
- If you are building an emergency fund or saving for a goal, an online savings account will grow your money faster with no monthly fees.
How Chase savings rates compare to other banks
The real question is not whether Chase is good in isolation, but whether it is better than your other options. Online banks like Marcus, Ally, and American Express Personal Savings currently offer rates between 4.0% and 5.35% APY with no monthly fees and no minimum balance requirements.
On a $5,000 balance, Chase at 0.05% APY earns you $2.50 per year. The same $5,000 at an online bank earning 4.5% APY earns $225 per year. Over five years, that is a difference of $1,112.50 in interest you do not receive by staying with Chase. If you also pay the $5 monthly fee because your balance dips below $300, you lose another $60 per year.
Chase's only rate advantage appears if you maintain $25,000 or more in the Premier Savings Account and may have access to for relationship pricing, which some branches offer to customers with multiple products. Even then, the rates rarely exceed 0.15% APY, still far below what online banks pay.
When a Chase savings account actually makes sense
A Chase savings account is practical if you already have a Chase checking account and want to keep everything in one place. The convenience of moving money between accounts when ready, seeing both balances on one login, and handling everything at a branch or through one app has real value if you dislike managing multiple banks.
It also makes sense as a temporary holding account—a place to park money for a few weeks while you decide where it should go. If you are saving for a down payment or emergency fund and plan to move the money within a month or two, the interest rate does not matter much, and the simplicity of Chase might outweigh the cost.
A third scenario: if you receive frequent deposits and withdrawals that would trigger fees at other banks, Chase's $300 minimum is low enough that you might stay under the fee just by keeping a small cushion. Some people find this easier than monitoring a separate online account.
The real cost of Chase's low rates over time
The damage from low interest rates compounds quietly. A $10,000 savings balance at Chase earning 0.05% APY grows to $10,025.13 after five years. The same $10,000 at an online bank earning 4.5% APY grows to $12,461.82. That is $2,436.69 you do not have because you chose convenience over rate.
If you also pay the $5 monthly fee for five years, you lose another $300. Your total cost of using Chase instead of an online bank: roughly $2,737 on a $10,000 balance over five years. For someone saving $200 per month, that difference matters.
The gap widens with larger balances. On $50,000 over five years, Chase costs you roughly $12,000 in foregone interest compared to a 4.5% online account, plus $300 in fees if you dip below the minimum.
How to avoid Chase savings account fees
If you decide to keep money at Chase, the easiest way to avoid the $5 monthly fee is to link a Chase checking account to your savings account. The fee waives automatically. You do not need to do anything—just have both accounts open at the same institution.
Alternatively, keep a $300 minimum balance in the savings account at all times. This is a low bar, but it means you cannot use the account as a true savings vehicle if you are starting from zero. You have to fund it first.
If you have neither a Chase checking account nor $300 to keep in savings, the monthly fee will explore, and the account becomes expensive relative to what you earn. In that case, an online savings account with no fees and higher rates is the better choice.
What to do if you want better returns on savings
If you have money sitting in a Chase savings account earning 0.05% APY, moving it to an online savings account takes about 15 minutes and costs nothing. You will need the account number and routing number from your Chase savings account, which you can find online or on a statement. Then you open an account at an online bank, provide your Chase details, and request a transfer.
The transfer usually takes three to five business days. During that time, your money is in transit but still yours. Once it lands at the online bank, it starts earning the higher rate when ready. You can keep your Chase account open (to avoid closing it and affecting your credit history) or close it after the transfer clears.
If you are worried about losing access to your money, remember that online savings accounts are FDIC-insured just like Chase, and you can transfer money back to Chase or another bank whenever you need it. The only real difference is that savings accounts—whether at Chase or online banks—typically limit you to six withdrawals per month, though this rule is rarely enforced.
Frequently Asked Questions
Will moving my money to an online bank hurt my credit?
No. Opening a savings account does not trigger a hard inquiry and does not appear on your credit report. Closing your Chase savings account also does not hurt your credit. Only credit products like loans and credit cards affect your score.
Is my money safe at an online bank?
Yes, as long as the bank is FDIC-insured, which all major online savings banks are. FDIC insurance covers up to $250,000 per account, so your deposits are protected the same way they are at Chase. You can verify a bank's FDIC status on the FDIC website.
Can I withdraw money from an online savings account whenever I want?
Yes, but savings accounts—online or at Chase—are designed for storage, not frequent access. Federal rules once limited withdrawals to six per month, though this is rarely enforced now. If you need to move money in and out constantly, a checking account is better suited.
What if I want to keep my Chase account but earn more interest?
You can open a savings account at an online bank and keep your Chase checking account. Many people do this: they use Chase for checking and bill pay, and an online bank for savings. This gives you the convenience of Chase for daily banking and the higher rates of an online bank for money you are not spending.
Does Chase offer any savings products with better rates?
Chase offers certificates of deposit (CDs) with rates higher than savings accounts, typically 4% to 5% APY depending on the term. However, your money is locked up for the CD term—usually three months to five years—and you pay a penalty if you withdraw early. Online banks also offer CDs at similar rates with more flexibility.