Chase does not offer a dedicated high-yield savings account
Chase's standard savings account earns interest, but the rate is not competitive with high-yield savings accounts from other banks. As of now, Chase savings accounts earn around 0.01% annual percentage yield (APY) on balances, which means $10,000 in a Chase savings account earns roughly $1 per year in interest. Banks that specialize in high-yield savings—like Marcus, Ally, or American Express Personal Savings—currently offer rates between 4% and 5% APY on the same balance.
Chase does offer a Chase Savings account and a Chase Premier Savings account for customers with higher balances, but neither qualifies as high-yield. The Premier version requires a minimum balance of $25,000 and pays a slightly higher rate, but it still lags far behind what you would earn in a true high-yield savings account elsewhere.
If you bank with Chase for checking and want to keep your money in one place, you trade interest earnings for convenience. If maximizing interest is your goal, you would need to move savings to another institution.
Key Takeaways
- Chase savings accounts earn around 0.01% APY, which is significantly lower than high-yield savings accounts offered by other banks.
- Chase Premier Savings requires a $25,000 minimum balance but still does not offer high-yield rates comparable to online banks.
- High-yield savings accounts at other institutions currently pay between 4% and 5% APY, meaning you would earn roughly $400 to $500 per year on a $10,000 balance.
- You can open a high-yield savings account at another bank while keeping your Chase checking account for everyday banking.
Why Chase rates are lower than online banks
Chase operates thousands of physical branches and employs customer service staff in call centers. Those costs get passed along as lower interest rates on savings products. Online banks like Ally or Marcus have no branches and minimal overhead, so they return more of their earnings to depositors as interest.
Chase also makes money by lending out customer deposits at higher rates. A customer with $100,000 in a Chase savings account earning 0.01% is a profitable relationship for the bank—they lend that money at 6%, 7%, or higher and keep the difference. Online banks operate on thinner margins and compete primarily on rate, so they pass more of the lending spread back to savers.
This is not a flaw in Chase's business model; it is a deliberate choice. Chase prioritizes customer retention and cross-selling (checking, credit cards, mortgages) over offering the highest savings rates. If you have a mortgage or investment account with Chase, the bank benefits from keeping your savings there too, even at a low rate.
What you would earn in a Chase account versus a high-yield account
| Account Type | Current APY | Annual Interest on $10,000 | Annual Interest on $50,000 |
|---|---|---|---|
| Chase Savings | 0.01% | $1 | $5 |
| Chase Premier Savings | 0.01% | $1 | $5 |
| High-Yield Savings (typical) | 4.5% | $450 | $2,250 |
The difference compounds over time. Over five years, $50,000 in a Chase savings account earns $25 in interest. The same amount in a high-yield account earning 4.5% earns $11,250. That is not a minor gap—it is the difference between your money working for you and your money sitting still.
Interest rates change, and the rates shown here reflect current market conditions. High-yield rates have fallen from their 2023 peaks (when some accounts paid 5.3% or higher) but remain far ahead of Chase. If the Federal Reserve cuts rates significantly, all savings rates will fall, but the gap between Chase and high-yield accounts is likely to persist.
FDIC protection is the same at Chase and online banks
Both Chase and online high-yield savings accounts are FDIC-insured up to $250,000 per depositor, per bank. Your money is equally safe at Chase or at Ally or Marcus. The insurance covers deposits if the bank fails, though bank failures are rare in the United States.
If you have more than $250,000 to save, you can open accounts at multiple banks to stay within the FDIC limit at each one. For example, you could keep $250,000 at Chase and $250,000 at a high-yield bank and be fully protected at both.
How to move money from Chase to a high-yield account
Opening a high-yield savings account at another bank takes 10 to 15 minutes online. You will need your Social Security number, a government ID, and your current address. Most banks verify your identity instantly.
Once your new account is open, you can transfer money from Chase using an external transfer. Log into your Chase account, select "Transfer Money," and choose the option to send to another bank. You will need the routing number and account number of your new high-yield account. The transfer usually takes one to three business days.
You do not have to close your Chase savings account. Many people keep a small balance there for convenience while moving the bulk of their savings to earn higher interest elsewhere. There is no penalty for maintaining both accounts.
When it makes sense to keep money at Chase
If you have less than $1,000 in savings, the interest difference is negligible—you would earn $45 per year in a high-yield account versus $0.10 at Chase. The hassle of managing two accounts may not be worth it.
If you use Chase for checking and frequently move money between checking and savings, keeping savings at Chase reduces friction. You can transfer between your own accounts instantly without waiting for external transfers to clear.
If you have a Chase mortgage or investment account and value having all your finances in one place, the convenience may outweigh the interest cost. This is a personal choice, not a financial optimization.
For any amount over $5,000 that you plan to keep for more than a year, moving it to a high-yield account at another bank makes financial sense. The interest you earn will exceed any inconvenience of managing two accounts.
Frequently Asked Questions
Can I earn higher interest at Chase by opening a different type of account?
Chase offers money market accounts and certificates of deposit (CDs), but these are not savings accounts. CDs pay higher rates (currently 4% to 5% depending on term length) but lock your money away for a set period—typically three months to five years. If you need access to your money, a high-yield savings account at another bank is more flexible.
Does Chase offer any promotional rates on savings accounts?
Chase occasionally runs promotions offering bonus interest for a limited time, but these are temporary and do not change the underlying account rate. Once the promotion ends, your rate returns to the standard 0.01%. High-yield accounts maintain their competitive rates year-round.
What if I want to keep my money at Chase but earn more interest?
You could open a Chase CD instead of a savings account, which pays higher rates but requires you to lock your money for a fixed term. Alternatively, you can open a high-yield savings account at another bank and transfer your savings there while keeping your Chase checking account for daily banking.
Are there any fees for moving money out of Chase savings?
Chase does not charge a fee to transfer money out of a savings account or to close the account. You can move your balance to another bank at any time without penalty.
What happens if interest rates drop—will high-yield accounts still be better than Chase?
Yes. Even if high-yield rates fall to 2% or 3%, they will almost certainly remain higher than Chase's rate. The gap between Chase and online banks has persisted across multiple interest rate cycles, and there is no reason to expect that to change.