Chase interest rates depend on the account type and change based on the Federal Reserve

Chase does not publish a single interest rate. Instead, the bank sets different rates for different accounts — savings accounts, money market accounts, and CDs all earn different amounts. The rates also move up and down when the Federal Reserve changes its benchmark rate, which it does several times a year. Right now, Chase savings accounts earn between 0.01% and 0.05% annual percentage yield (APY), depending on the account. Money market accounts and CDs earn more, but the exact rate depends on how long you lock your money away.

The reason rates vary so much is that Chase competes for deposits. A high-yield savings account at an online bank might pay 4% or 5%, while a Chase savings account pays less. Chase accepts lower rates because customers value the branch network, the mobile app, and the ability to withdraw money when ready. You are trading higher interest for convenience.

Key Takeaways

  • Chase savings accounts currently pay between 0.01% and 0.05% APY, which is lower than online banks but comes with branch access and no withdrawal limits.
  • Chase CDs and money market accounts pay higher rates, but you must lock your money away for a set period or maintain a higher balance.
  • Chase rates change when the Federal Reserve adjusts its benchmark rate, usually several times per year.
  • You can see current rates on Chase's website or by calling 1-800-935-9935, since rates shift and vary by location.

How Chase savings account rates work

A Chase savings account earns interest on your balance, but the rate is very low. As of now, most Chase savings accounts pay 0.01% APY on balances under $25,000 and 0.05% APY on balances of $25,000 or more. This means if you keep $10,000 in a Chase savings account for a year, you earn about $1 in interest. The rate is the same whether you have a Chase checking account or not.

Chase calculates interest daily but deposits it monthly. That means the bank looks at your balance every day, adds up the interest owed, and pays it all at once on the last day of the month. If you withdraw money mid-month, you lose the interest on that amount for the rest of the month.

Chase CDs and money market accounts pay more

If you can lock your money away, Chase CDs (certificates of deposit) pay higher rates. A 3-month CD might pay 4.5% APY, while a 12-month CD might pay 4.75% APY. The longer you commit, the higher the rate. But if you withdraw the money before the term ends, Chase charges an early withdrawal penalty — usually three months of interest or more, depending on the CD length.

Chase money market accounts sit between savings accounts and CDs. They pay higher interest than savings accounts (currently around 4.5% APY on some tiers) but let you withdraw money without a penalty. The catch is that you get only a limited number of withdrawals per month, and you must maintain a higher minimum balance — often $2,500 or more.

Why Chase rates are lower than online banks

Online banks like Marcus, Ally, and American Express offer savings rates of 4% to 5% APY. Chase offers 0.01% to 0.05%. The difference is overhead. Chase operates thousands of branches, employs tens of thousands of people, and maintains physical infrastructure. Online banks have no branches and far fewer employees, so they can afford to pay depositors more.

Chase also knows that many customers will not move their money even if rates are low. If you use Chase checking, have a mortgage with Chase, or straightforward like the convenience of a nearby branch, you are unlikely to move $50,000 to an online bank for an extra 4% interest. Chase prices its rates accordingly.

How Federal Reserve changes affect your rate

When the Federal Reserve raises or lowers its benchmark interest rate, banks adjust their deposit rates within days or weeks. If the Fed raises rates, Chase will eventually raise the rates it pays on savings accounts and CDs. If the Fed cuts rates, Chase cuts what it pays you. The lag is usually short — a few days to two weeks — but Chase is not required to match the Fed move exactly or when ready.

The Fed's benchmark rate is currently between 5.25% and 5.50%, but that does not mean Chase pays you 5.25%. The Fed rate is what banks charge each other to borrow overnight. Deposit rates are much lower because banks use customer deposits to fund loans, and they keep the difference as profit.

How to find current Chase rates

Chase publishes current rates on its website at chase.com under the savings and CDs section. Rates vary slightly by state and by account type, so you must check your state specifically. You can also call Chase at 1-800-935-9935 to ask about current rates on any account. Rates change frequently, so what you see today may not be what you see next month.

When you open an account, Chase will show you the APY that applies to your specific account and balance tier. That rate is locked in for the life of the account, but Chase can change it at any time with 30 days' notice. You will receive notice by mail or email.

Comparing Chase rates to other options

If you want higher interest, you have three main choices. First, move money to an online savings account or money market account, which currently pay 4% to 5% APY with no withdrawal limits. Second, buy a CD from any bank, including Chase, and lock your money away for a set term. Third, keep some money at Chase for convenience and move the rest to a higher-paying account elsewhere.

Many people do the third option: they keep a small emergency fund at Chase for straightforward access and move larger sums to online banks or CDs. This way you get both convenience and higher interest on the money you do not need when ready.

Frequently Asked Questions

Does Chase pay interest on checking accounts?

Most Chase checking accounts pay no interest or pay 0.01% APY. A few premium checking accounts pay slightly more, but the rate is still very low. If you want interest on money you use for daily spending, a money market account is a better choice.

What is the penalty for withdrawing from a Chase CD early?

The penalty depends on the CD term. For CDs under one year, the penalty is usually three months of interest. For longer CDs, it can be six months or more. Chase will tell you the exact penalty when you open the CD.

Do I have to keep a minimum balance to earn interest at Chase?

No. Chase savings accounts earn interest on any balance, even $1. However, some money market accounts require a $2,500 minimum to earn the stated rate. Check the account details before you open.

Will Chase rates go up if the Federal Reserve raises rates?

Usually yes, but not always by the same amount. Chase typically raises deposit rates within two weeks of a Fed increase, but the increase may be smaller than the Fed's move. The bank is not required to pass along the full increase.

Can I move my money to a higher-paying account without closing my Chase account?

Yes. You can open an account at another bank and transfer money there while keeping your Chase account open. You can also move money back to Chase later if rates change or if you prefer the convenience.