Chase savings accounts earn interest, but the rate changes and depends on which account you open

Chase offers several savings accounts, and each one earns interest — money the bank pays you for keeping your money there. The interest rate (the percentage the bank pays) is not fixed. It moves up and down based on what the Federal Reserve does with its benchmark rate, and it varies between Chase's different account types. Right now, you can find the current rates on Chase's website, but they will be different three months from now, or six months from now.

The rate you see advertised is what new customers get when they open an account today. If you already have a Chase savings account, your rate may be different — usually lower. Chase is not required to tell you in advance when your rate will change, though they will notify you by mail or through your online account when it does.

Key Takeaways

  • Chase savings account interest rates change regularly and are not may provide to stay the same.
  • Different Chase savings products (regular savings, money market, high-yield savings) pay different rates, and you can see current rates on Chase.com.
  • The rate you get as a new customer is usually higher than what existing customers earn on the same account type.
  • Interest is calculated daily but typically paid once a month into your account.

The three main Chase savings products and how their rates differ

Chase offers a regular savings account, a money market account, and a high-yield savings account (called Chase Savings or Chase Premier Savings depending on your balance). Each earns a different rate. The high-yield account pays more than the regular savings account. The money market account sits somewhere in between, but it also requires you to keep a higher balance and limits how many withdrawals you can make per month.

If you are new to banking or want to start small, the regular savings account has no minimum balance requirement. If you have more money to deposit and want to earn more interest, the high-yield account will pay you more — but again, that rate changes. You can see all three rates side by side on Chase's savings products page, and you can compare them to what other banks are offering at the same time.

Why Chase rates are usually lower than online-only banks

Chase is a large national bank with thousands of branches and ATMs. Online-only banks (like Ally or Marcus) have no physical locations, so they spend less money on buildings and staff. Because their costs are lower, they can pay higher interest rates on savings accounts. If earning the most interest possible is your main goal, you may find a better rate elsewhere.

But Chase has advantages that matter to many people: you can walk into a branch to deposit cash, talk to someone in person, and use Chase ATMs everywhere. If you already bank with Chase for checking or have a mortgage with them, keeping your savings there too might be simpler, even if the rate is not the highest available.

How interest is calculated and when you receive it

Chase calculates interest on your account balance every single day. That means if you have $1,000 in the account on Monday and $2,000 on Tuesday, the bank figures out how much interest each balance earned for those days. At the end of the month, Chase adds up all those daily amounts and deposits the total interest into your account as a single payment.

The interest you earn is taxable income. At the end of the year, Chase will send you a form (called a 1099-INT) showing how much interest you earned. You will report this on your tax return. If you earned more than $10 in interest during the year, Chase is required to send you this form.

What happens to your rate when the Federal Reserve changes its rate

The Federal Reserve is the central bank of the United States. Several times a year, it sets a benchmark interest rate that influences what all banks pay on savings and charge on loans. When the Fed raises its rate, banks usually raise the rates they pay on savings accounts. When the Fed lowers its rate, banks usually lower savings rates too.

Chase does not have to match the Fed's moves exactly or when ready. Some banks move faster than others. If you are watching your rate closely and it has not changed even though the Fed moved, it may change in the coming weeks. You can check the Fed's current rate on the Federal Reserve's website to understand the direction rates are moving.

How to find Chase's current savings rates

Go to Chase.com and look for the savings accounts section. You will see the current rates listed for each account type. These rates explore to new customers opening an account today. If you already have a Chase savings account, log into your online banking to see your personal rate, which may be different.

You can also call Chase at 1-800-935-9935 or visit a branch in person to ask about current rates. If you are comparing Chase to other banks, write down the rates from each one on the same day, because rates can shift and you want to compare apples to apples.

Frequently Asked Questions

Will my Chase savings rate stay the same forever?

No. Chase can change your rate at any time, and they typically do when the Federal Reserve changes its benchmark rate. You will receive notice by mail or through your online account, but the bank does not need your permission to lower your rate.

Why is my Chase savings rate lower than the rate advertised on their website?

Chase usually offers a higher rate to new customers opening an account for the first time. If you already have a Chase savings account, your rate is typically lower than what new customers receive. This is a common practice across the banking industry.

Can I move my money to a different bank if Chase's rate drops?

Yes. You can open a savings account at another bank and transfer your money there. There is no penalty for closing a Chase savings account. Just make sure the new bank's rate is actually higher before you move, and check whether they have any monthly fees.

How much interest will I actually earn?

That depends on your balance and the rate. If you have $10,000 and the rate is 4.5% per year, you would earn roughly $450 in a year (though the actual amount is slightly less because interest is compounded daily). Use Chase's interest calculator on their website to estimate your earnings based on your specific balance.

Is the interest I earn on a Chase savings account taxable?

Yes. Interest income is taxable. If you earn $10 or more in a year, Chase sends you a 1099-INT form to report on your tax return. Even if you earn less than $10, you still owe tax on it — you just will not receive a form from the bank.