Chase savings accounts work well if you keep a high balance or use Chase's other products, but the interest rate is low and monthly fees are common

Chase offers three main savings accounts: the basic savings account, the Premier Savings account, and the Chase Sapphire Preferred Savings account. The basic savings account has no minimum balance requirement and no monthly fee if you maintain a $300 balance—but if you drop below that, you pay $5 per month. The interest rate is currently around 0.01% annual percentage yield (APY), which means $100 in the account earns about one cent per year. The Premier Savings account requires a $10,000 minimum balance and pays slightly more interest, but still under 0.05% APY. If you fall below the minimum, you pay $25 per month.

The real advantage of a Chase savings account is not the interest rate—it is the convenience if you already bank with Chase. Transfers between your Chase checking and savings accounts happen when ready online. You can deposit checks through the mobile app. You have access to Chase branches and ATMs nationwide. But that convenience costs you in interest earnings compared to online banks, which currently offer rates between 4% and 5% APY on savings accounts.

Key Takeaways

  • Chase savings accounts charge $5 or $25 monthly fees if you do not maintain a minimum balance, and the interest rate is significantly lower than online banks offer.
  • The basic savings account requires only a $300 minimum balance to avoid fees, while the Premier account requires $10,000.
  • A Chase savings account makes sense if you already have a Chase checking account and want to move money between accounts when ready without leaving the Chase system.
  • If your only goal is to earn interest on savings, an online bank will pay you 40 to 500 times more interest than Chase will.

When a Chase savings account makes financial sense

A Chase savings account is worth keeping if you use Chase for checking and you move money between accounts frequently. The when ready transfers and same-day availability mean you can sweep money from checking to savings without waiting for a transfer to clear. This matters if you are paid weekly or biweekly and want to move part of each paycheck into savings the same day it arrives.

It also makes sense if you are building an emergency fund and you want to keep that money separate from your checking account but still accessible. The $300 minimum on the basic account is low enough that most people can maintain it without effort. You avoid the $5 monthly fee by keeping at least that amount, which costs you nothing.

A Chase savings account is less useful if you are trying to maximize interest earnings or if you do not have other Chase accounts. If you have $5,000 sitting in a Chase savings account at 0.01% APY, you earn about 50 cents per year. The same $5,000 in an online savings account at 4.5% APY earns $225 per year. That is a real difference, especially over time.

How Chase savings accounts compare to online banks

Online banks like Marcus, Ally, and American Express offer savings accounts with no monthly fees, no minimum balance, and interest rates between 4% and 5% APY. They do not have physical branches, but they also do not charge you for the privilege of saving money. Transfers from an online bank to a Chase checking account take one to three business days, but the interest you earn more than makes up for the wait.

The trade-off is access. You cannot walk into a branch to deposit cash or speak to someone in person. Most online banks let you deposit checks through a mobile app, but if you need to deposit cash, you have to transfer it from another bank or use a third-party ATM network. Chase has 4,700 branches and 16,000 ATMs, so if you use physical banking regularly, that convenience has real value.

If you keep less than $1,000 in savings, the interest difference is small enough that convenience might win. If you keep $5,000 or more, the interest difference becomes large enough that an online bank is worth the slight inconvenience of slower transfers.

What happens if you do not maintain the minimum balance

The basic Chase savings account charges $5 per month if your balance drops below $300. That $5 fee wipes out years of interest earnings on a small account. If you have $200 in the account, you lose 2.5% of your balance to the monthly fee alone. Over a year, you would pay $60 in fees on an account that earned less than a penny in interest.

The Premier Savings account is worse: it charges $25 per month if you fall below $10,000. That fee is designed for people who maintain large balances. If you cannot keep $10,000 in savings, the basic account is the right choice, and you need to be disciplined about staying above $300.

If you are worried about dipping below the minimum, an online bank with no minimum balance and no monthly fee removes that risk entirely. You cannot be charged a fee you do not owe.

How to decide between Chase and an online bank

Ask yourself three questions. First: do you have a Chase checking account and do you move money between checking and savings at least once a month? If yes, Chase is convenient. Second: do you have more than $2,000 in savings that you plan to keep there for at least a year? If yes, the interest difference matters enough to consider an online bank. Third: do you deposit cash regularly, and do you need to do it in person? If yes, Chase's branch network has real value.

If you answered yes to the first question and no to the other two, keep your savings at Chase. If you answered yes to the second question, open an online savings account and keep your Chase account for checking only. If you answered yes to the third question, you need Chase's branches, so accept the lower interest rate as the cost of that access.

You can also split the difference: keep a small emergency fund ($300 to $500) in your Chase savings account for when ready access, and keep the rest of your savings in an online bank. That way you have the convenience of Chase for money you might need today and the interest earnings of an online bank for money you are saving long-term.

The fine print on Chase savings accounts

Chase limits you to six withdrawals or transfers per month from a savings account. If you exceed that, you pay $10 per excess transaction. This rule is less common now than it used to be, but it still applies. If you plan to move money in and out of savings frequently, this limit matters. Online banks typically do not have this restriction.

Chase also requires you to link your savings account to a Chase checking account to open it. You cannot open a Chase savings account as a standalone product. If you do not have a Chase checking account, you would need to open one first, which means meeting that account's minimum balance requirements as well.

Interest rates change. Chase's current rates are low, but if rates rise, Chase may raise its savings account rates too. However, online banks have historically raised their rates faster and higher than traditional banks. If you are comparing rates today, check both again in three months, because the gap may have widened.

Frequently Asked Questions

Can I avoid the $5 monthly fee on a Chase savings account?

Yes. Keep a balance of at least $300 in the account at all times. The fee only applies if your balance falls below that threshold. If you are disciplined about maintaining that minimum, you pay nothing.

Is the interest rate on Chase savings accounts ever competitive?

Not currently. Chase's rates are around 0.01% to 0.05% APY, while online banks offer 4% to 5% APY. Chase's rates have not kept pace with the broader market. If interest earnings are your goal, an online bank will pay significantly more.

What if I need to deposit cash?

Chase has 4,700 branches where you can deposit cash into your savings account. Online banks do not have branches, so you would need to deposit cash into a checking account at another bank and transfer it. If you deposit cash regularly, Chase's branch network is a real advantage.

Can I transfer money from Chase savings to another bank quickly?

Transfers from Chase to another bank take one to three business days. Transfers within Chase (from savings to checking) happen when ready. If you need money fast, the when ready internal transfer is useful, but moving money out of Chase takes time.

Should I close my Chase savings account and move to an online bank?

It depends on your balance and how often you move money. If you have more than $2,000 in savings and you do not move money between accounts frequently, an online bank will earn you significantly more interest. If you have less than $1,000 or you move money constantly, Chase's convenience may be worth the lower rate.