Chase does not offer a dedicated high-yield savings account

Chase Bank does not have a standalone high-yield savings account product. The bank offers a Chase Savings Account and a Chase Premier Savings Account, but both pay rates far below what you will find at online banks or credit unions. As of early 2024, Chase's savings rates sit between 0.01% and 0.04% annually, depending on your account type and balance. High-yield savings accounts at other institutions currently pay between 4% and 5.35% annually.

Chase's strategy is to bundle savings with checking accounts, credit cards, and investment products rather than compete on savings rates alone. If you bank with Chase primarily for checking or other services, you may keep a small emergency fund there for convenience. But if your goal is to earn meaningful interest on savings, Chase is not the right place.

Key Takeaways

  • Chase savings accounts pay 0.01% to 0.04% annually, while high-yield accounts elsewhere pay 4% to 5.35%, a difference of thousands of dollars per year on a $10,000 balance.
  • Chase offers no product that competes with high-yield savings accounts; the bank focuses on bundled checking and investment services instead.
  • If you need a savings account at Chase for convenience, use it only for money you access frequently, not for long-term emergency funds.
  • Online banks and credit unions offer high-yield savings accounts with no monthly fees and rates that change based on Federal Reserve decisions.

What Chase savings accounts actually pay

Chase's standard savings account pays 0.01% annual percentage yield (APY) on all balances. The Premier Savings Account, which requires a $25,000 minimum balance, pays 0.04% APY. Both rates are set by Chase and do not move in lockstep with Federal Reserve rate changes the way high-yield accounts do.

To put this in numbers: on a $10,000 balance, Chase pays you $1 per year in the standard account and $4 per year in the Premier account. A high-yield savings account paying 4.5% would pay you $450 per year on the same balance. Over five years, that difference compounds to roughly $2,200 in lost earnings.

Chase does charge a $5 monthly maintenance fee on both savings accounts unless you meet certain conditions—maintaining a $300 minimum balance, setting up direct deposit, or linking a Chase checking account. Many online high-yield accounts charge no monthly fee at all.

Why Chase keeps savings rates so low

Chase is a full-service bank that makes money from lending, investment services, credit cards, and advisory fees. Savings accounts are not their profit center. The bank's strategy is to offer savings accounts as a convenience for customers who already use Chase checking or investment products, not to attract savers shopping purely on rate.

Online banks and credit unions, by contrast, have lower overhead costs and fewer product lines. They can afford to pass higher rates to savers because they do not maintain branch networks or offer as many bundled services. Chase's business model does not require them to compete on savings rates.

When it makes sense to keep money at Chase

A Chase savings account is useful if you need to move money between accounts frequently or access cash the same day. Chase has thousands of branches and ATMs nationwide, so withdrawals are convenient. If you use Chase checking and need a place to park money for a week or two before paying a bill, the account works fine.

Chase savings accounts also work for people who prioritize convenience and integrated banking over rate of return. If you have $2,000 in savings and plan to spend it within six months, the difference between 0.01% and 4.5% is only about $4. The time you save by not opening a separate account elsewhere may be worth more to you than that amount.

For any money you plan to keep for longer than a few months, though, the math shifts. A high-yield savings account at another institution will earn you significantly more with no additional effort once the account is open.

Better alternatives to Chase savings accounts

Online banks like Marcus, Ally, and American Express Personal Savings offer high-yield savings accounts with rates between 4% and 5.35% and no monthly fees. Most require no minimum balance. You can open an account online in minutes and link it to your Chase checking account for transfers.

Credit unions often offer high-yield savings accounts as well, sometimes called share savings accounts. Rates vary by credit union, but many pay competitive rates and charge no fees. You must be a member to open an account, but membership is often free or costs a small annual fee.

Money market accounts at online banks also pay high yields and offer check-writing or debit card access, though usually with limits on the number of withdrawals per month. If you need both high interest and frequent access, a money market account may split the difference.

How to move money from Chase to a high-yield account

Opening a high-yield savings account takes about 15 minutes online. You will need your Social Security number, a government ID, and proof of address. Most banks accept a recent utility bill or bank statement as proof of address.

Once your account is open, you can link it to your Chase checking account and transfer money between them. Most transfers take one to three business days. Some online banks offer faster transfers if you provide your Chase routing number and account number. You can set up recurring transfers if you want to move money to savings automatically each payday.

You do not need to close your Chase savings account. Many people keep a small balance there for convenience while moving the bulk of their savings elsewhere.

What happens to your rate if the Federal Reserve changes rates

High-yield savings rates are tied to the Federal Funds Rate, which the Federal Reserve sets. When the Fed raises rates, online banks and credit unions typically raise their savings rates within days or weeks. When the Fed cuts rates, savings rates fall as well.

Chase's savings rates do not move as quickly or as far as high-yield rates. The bank may wait weeks or months to adjust, and the adjustment is often smaller. This lag means that during periods when the Fed is raising rates, high-yield accounts pull further ahead. During rate cuts, the gap narrows more slowly.

If you are saving for the long term, locking in a high rate now before the Fed cuts rates again is one reason to move money out of Chase. Once rates fall, the difference between Chase and high-yield accounts will shrink, but it will not disappear.

Frequently Asked Questions

Can I earn more interest by putting money in a Chase money market account instead?

Chase money market accounts pay the same rates as savings accounts—0.01% to 0.04% APY. They offer check-writing and debit card access, but the interest earnings are no better. If you want both high yield and frequent access, open a money market account at an online bank instead.

Does Chase offer any savings product that pays more than 1% APY?

No. Chase's highest-paying savings product is the Premier Savings Account at 0.04% APY. The bank does not offer CDs, money market accounts, or savings products that compete with high-yield rates. If you want to earn more than 1%, you must move your money to another bank.

What if I have a Chase credit card—do I get a better savings rate?

No. Chase savings rates are the same for all customers, regardless of whether you hold a credit card, checking account, or investment account with the bank. Bundling products does not unlock higher savings rates.

Is my money safe in a high-yield savings account at an online bank?

Yes, as long as the bank is FDIC-insured. Most online banks carry FDIC insurance that protects up to $250,000 per account holder per bank. Check the bank's website for their FDIC certificate number. Your money is just as safe at an online bank as it is at Chase.

How often do high-yield savings rates change?

Rates can change weekly or monthly, depending on Federal Reserve decisions and bank competition. Most banks notify you by email when your rate changes. You do not need to do anything—the new rate applies automatically to your account.