Chase savings accounts offer low interest rates and monthly fees, so whether one is right for you depends on what you need the account to do
Chase is one of the largest banks in the United States, and they offer savings accounts at most of their branches and online. A Chase savings account will hold your money safely and let you withdraw it when you need it. The main trade-off is that Chase's savings accounts currently pay very little interest on the money you keep there — meaning your balance grows slowly — and they charge a monthly fee unless you meet certain conditions.
Whether a Chase savings account makes sense for you depends on three things: whether you already bank with Chase, how much money you plan to keep in savings, and whether you want to earn interest on that money. If you have a Chase checking account and want a straightforward place to park emergency money, a Chase savings account is convenient. If you are looking for the highest interest rate possible, or if you want to avoid monthly fees on a small balance, other banks offer better terms.
Key Takeaways
- Chase savings accounts charge a $5 monthly fee unless you keep a $500 minimum balance or link the account to a Chase checking account.
- Chase savings accounts currently pay around 0.01% annual interest, which means a $1,000 balance earns roughly $0.10 per year.
- Online banks and credit unions often pay 4% to 5% annual interest on savings, which is 400 to 500 times higher than Chase's rate.
- A Chase savings account is most useful if you already have a Chase checking account and want a second account at the same bank for organization.
- You can open a Chase savings account online or at a branch, and you can move money between your Chase accounts when ready.
How much interest Chase savings accounts actually earn
Chase savings accounts pay interest at a rate that changes based on what the Federal Reserve does with interest rates. As of now, Chase pays around 0.01% annual percentage yield (APY) on most savings accounts. That means if you keep $1,000 in the account for a full year, you earn about $0.10 in interest — roughly the cost of a postage stamp.
This rate is much lower than what you can find elsewhere. Online banks like Marcus, Ally, and Capital One 360 currently pay between 4% and 5% APY on savings accounts with no monthly fees. A credit union in your area may also offer rates closer to 2% to 3%. The difference adds up quickly: $1,000 in a Chase account earns $0.10 per year, while the same $1,000 in a 4.5% account earns $45 per year.
Chase's low rate reflects the fact that they are a large brick-and-mortar bank with thousands of branches and employees. Online banks have lower costs, so they can afford to pay more interest. If earning interest on your savings is important to you, a Chase savings account is not the right choice.
Monthly fees and how to avoid them
Chase charges a $5 monthly maintenance fee on most savings accounts. You can avoid this fee in two ways: keep a minimum balance of $500 in the account at all times, or link the savings account to a Chase checking account.
The $500 minimum is straightforward — as long as your balance never drops below $500, you pay no fee. If your balance falls to $499 even once during a month, the fee applies. For people who want to keep a small emergency fund or save gradually, this can be difficult.
The checking account link is easier for most people. If you already have a Chase checking account, you can open a savings account and the fee disappears automatically. You do not need to keep any minimum balance. This is why a Chase savings account makes the most sense for people who already bank with Chase — the fee becomes irrelevant.
When a Chase savings account actually makes sense
A Chase savings account is most useful in two situations. First, if you already have a Chase checking account and want a second account at the same bank, a savings account is convenient. You can move money between the two accounts when ready through the Chase app or website, and you see both balances in one place. This is helpful if you want to keep your emergency fund separate from the money you spend on daily expenses.
Second, if you have a large amount of money and can keep the $500 minimum balance easily, the monthly fee becomes negligible. Someone with $10,000 in savings pays $60 per year in fees but also has the security of a major bank and the ability to visit a physical branch if needed. However, even in this case, you would earn more interest elsewhere — the fee savings do not make up for the low interest rate.
A Chase savings account is not the right choice if you want to earn meaningful interest on your savings, if you do not have a Chase checking account and want to avoid the monthly fee, or if you prefer to bank entirely online.
How to open a Chase savings account
You can open a Chase savings account online through their website or app, or in person at any Chase branch. Online is faster — the process takes about 10 minutes. You will need a valid government ID, your Social Security number, and an initial deposit (usually at least $25, though this varies by location).
If you open online, Chase will ask for your personal information, verify your identity, and then let you choose which type of savings account you want. You can fund the account by transferring money from another bank account or by depositing cash at a Chase ATM. If you open in person at a branch, a banker will walk you through the same steps and you can ask questions about the account features.
Once the account is open, you can set up automatic transfers from your checking account if you want to save a fixed amount each month. You can also withdraw money whenever you need it — there are no restrictions on how often you can take money out, though federal rules once limited savings withdrawals to six per month (this rule is no longer in effect).
How Chase savings accounts compare to other options
The table below shows how a Chase savings account stacks up against other common savings options:
| Account Type | Current Interest Rate | Monthly Fee | Minimum Balance | Best For |
|---|---|---|---|---|
| Chase Savings | 0.01% | $5 (waived with $500 minimum or linked checking) | $500 to avoid fee | Existing Chase customers |
| Online Bank Savings (Marcus, Ally, etc.) | 4% to 5% | $0 | $0 | Earning interest with no fees |
| Credit Union Savings | 2% to 3% | $0 to $3 | $0 to $100 | Local banking with better rates |
| Money Market Account (Chase) | 0.01% | $25 | $2,500 | Not recommended — higher fee, same low rate |
The clearest comparison is between Chase and online banks. An online bank savings account pays 400 to 500 times more interest, charges no monthly fee, and requires no minimum balance. The only advantage Chase has is physical branches — if you need to deposit cash or speak to someone in person, Chase is more convenient. For most people saving money, an online bank is the better choice.
Questions to ask yourself before choosing
Before you open a Chase savings account, ask yourself these questions: Do I already have a Chase checking account? If yes, a Chase savings account becomes much more practical because the monthly fee disappears. Do I plan to keep at least $500 in this account at all times? If no, you will pay the monthly fee unless you have that checking account link. Do I want to earn interest on my savings? If yes, look at online banks or credit unions instead — they pay far more.
If you answer yes to having a Chase checking account and no to wanting high interest, a Chase savings account is a reasonable choice for convenience. If you answer no to the checking account or yes to wanting interest, you should look elsewhere.
Frequently Asked Questions
Can I withdraw money from a Chase savings account whenever I want?
Yes. You can withdraw money as often as you need it with no penalty. There are no limits on how many withdrawals you can make per month. You can withdraw at a Chase ATM, at a branch, or by transferring money to another account online.
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 are protected by the federal government if the bank fails. This protection applies to each account type separately, so your savings account and checking account are each covered up to $250,000.
What happens if my balance drops below $500?
If you do not have a linked Chase checking account, the $5 monthly fee applies that month. The fee is charged once, even if your balance stays below $500 for multiple months. If you have a linked checking account, the fee never applies regardless of your balance.
Can I move money between my Chase checking and savings accounts for free?
Yes. Transfers between your own Chase accounts are free and when ready. You can set up automatic transfers to move a fixed amount each month, or make one-time transfers whenever you want through the app or website.
Should I open a Chase savings account if I do not have a Chase checking account?
Probably not, unless you plan to keep at least $500 in the account. The $5 monthly fee adds up to $60 per year, and Chase's interest rate is so low that you would earn far more money at an online bank with no fees. If you are considering Chase, compare it to Marcus, Ally, or a local credit union first.