Yes, Chase savings accounts earn interest, but the rate is low and varies by account type and balance

Chase offers interest on most of its savings accounts, but the annual percentage yield (APY) is typically well below 1%. As of now, Chase's standard savings account earns around 0.01% APY, while their high-yield savings account earns a higher rate—but still modest compared to online banks. The exact rate you receive depends on which Chase account you hold, your balance tier, and whether you maintain a Chase checking account or other products.

Interest accrues daily and is deposited monthly. This means Chase calculates what you owe based on your balance each day, then adds it to your account once a month. The amount is small: on a $10,000 balance at 0.01% APY, you would earn about $1 per year. On the same balance at a higher rate like 4.5% APY (which you might find at an online bank), you would earn $450 per year—a significant difference.

Key Takeaways

  • Chase savings accounts do earn interest, but rates are typically below 1% APY for standard accounts and modest for high-yield accounts.
  • Interest is calculated daily and added to your account once per month, so you earn money on money you already have.
  • The actual dollars you earn depend on your balance and the APY rate—a higher balance or higher rate means more interest.
  • Chase's rates are generally lower than online-only banks, so comparing rates across institutions matters if interest income is your goal.

How Chase calculates and pays interest

Chase uses daily compounding, which means they calculate interest on your balance every single day, then add all of it to your account once a month. The formula is simple: your balance multiplied by the APY, divided by 365 days. If you have $5,000 and the APY is 0.01%, you earn roughly $0.01 per day, or about $0.30 per month.

Interest posts on the last business day of each month. You can see it listed as a deposit in your transaction history. Once it's in your account, it becomes part of your balance and earns interest itself the following month—though at these low rates, the compounding effect is negligible.

Chase savings account types and their rates

Chase offers several savings products, and rates differ by account:

  • Chase Savings Account: The standard option, currently earning around 0.01% APY. This is the lowest rate Chase offers.
  • Chase High Yield Savings Account: Earns a higher rate, typically in the range of 4% to 5% APY depending on current market conditions. This account usually requires a higher opening deposit and may have balance tiers that affect the rate.
  • Chase Money Market Account: A hybrid product that combines checking and savings features, with rates that fall between standard and high-yield options.

Rates change frequently and vary based on the Federal Reserve's decisions about interest rates. When the Fed raises rates, banks typically raise their savings rates too—but usually with a delay. When the Fed cuts rates, banks lower savings rates quickly. Chase publishes current rates on its website, and you can call 1-800-935-9935 to confirm the exact rate for your account type.

Why Chase rates are lower than other banks

Chase is a large, full-service bank with thousands of branches and ATMs nationwide. That physical infrastructure costs money. Online-only banks like Marcus, Ally, or American Express have no branches, so they pass those savings to customers in the form of higher interest rates. A customer at an online bank might earn 4.5% APY on a savings account, while a Chase customer earns 4.0% on the same balance—a real difference over time.

Chase's advantage is convenience: you can walk into a branch, speak to a person, and deposit cash without fees. You also get access to Chase's network of ATMs and its integration with Chase checking accounts. If you value that convenience and don't mind earning less interest, Chase is a reasonable choice. If maximizing interest is your priority, an online bank will serve you better.

How to find your current interest rate

Log into your Chase account online or through the mobile app and navigate to your savings account details. The APY should be displayed on the account summary page. You can also call Chase customer service at 1-800-935-9935 or visit a branch to ask. Rates are public information and don't change based on who you are—everyone with the same account type gets the same rate.

If you're comparing Chase to other banks, write down the APY, not just the interest rate. APY accounts for compounding and gives you an accurate picture of what you'll actually earn. A bank advertising "0.50% interest" might actually pay 0.51% APY once compounding is factored in.

What happens if you close your account or withdraw money

Interest is yours to keep. If you close a Chase savings account, you receive all accrued interest up to the day of closure. If you withdraw money mid-month, you still earn interest on the balance you held—it's calculated daily, so partial-month balances count.

Chase does not penalize you for withdrawals from savings accounts. Federal rules once limited savings account withdrawals to six per month, but that rule was suspended in 2020 and has not been reinstated. You can withdraw as often as you want without losing interest or paying a fee.

Frequently Asked Questions

How much interest will I actually earn on my savings?

It depends on your balance and the APY. Use this formula: balance × APY ÷ 12 = monthly interest. On $10,000 at 0.01% APY, you earn about $0.08 per month. On $10,000 at 4.5% APY, you earn about $37.50 per month. The difference compounds over a year.

Is my interest taxable?

Yes. Chase will send you a 1099-INT form at the end of the year if you earned $10 or more in interest. You report this as income on your tax return. The tax you owe depends on your tax bracket—the higher your income, the more you owe on interest earnings.

Can I move money between my Chase savings and checking account?

Yes, and transfers between your own Chase accounts are free and instant. Moving money doesn't affect interest—interest accrues on whatever balance sits in your savings account at the end of each day.

What if Chase lowers its interest rate?

Banks can change rates at any time without notice. If Chase lowers its rate, your interest earnings will drop immediately. You're not locked into a rate like you would be with a certificate of deposit (CD). If rates drop and you want higher returns, you can move your money to another bank.

Does having a Chase checking account give me a higher savings rate?

Not directly. Chase does not offer rate bonuses for holding multiple products. However, some Chase checking accounts come with perks like fee waivers or bonus interest on linked savings accounts during promotional periods—check your account terms or ask a Chase representative about current offers.