Chase Checking Accounts Do Not Earn Interest
Chase checking accounts do not pay interest on your balance. This includes Chase Total Checking, Chase Premier Plus Checking, and Chase Sapphire Checking. The money you keep in these accounts sits at zero percent annual percentage yield (APY), regardless of how much you deposit or how long you leave it there.
Chase does offer a savings account called Chase Savings, which earns a small amount of interest, but that is a separate product. If you want your money to grow through interest, you need to move it out of checking and into a savings account, money market account, or certificate of deposit (CD).
Key Takeaways
- All Chase checking accounts earn zero percent interest on your balance.
- Chase Savings accounts do earn interest, but the rate changes based on market conditions and is typically lower than rates offered by online banks.
- If you keep a high balance in Chase checking to avoid monthly fees, that money earns nothing and loses purchasing power over time due to inflation.
- Moving money between Chase checking and Chase Savings takes one to two business days, so you cannot treat savings as an emergency fund that works like checking.
Why Chase Checking Accounts Pay No Interest
Banks use checking accounts as transaction tools, not savings vehicles. Checking accounts are designed for frequent deposits and withdrawals—paying bills, receiving paychecks, making purchases. Because your money moves in and out constantly, banks do not pay interest on checking balances.
Savings accounts, by contrast, are meant to hold money longer. Banks can lend out the funds you keep in savings, so they pay you a small percentage of what they earn. Checking accounts do not work that way: the bank needs quick access to your money because you might withdraw it at any moment.
This is true across the banking industry, not just at Chase. No major bank pays interest on checking accounts. If you see an advertisement claiming a checking account earns interest, read the fine print carefully—it usually applies only to balances above a very high threshold, or the rate is so small it rounds to zero.
What Chase Checking Accounts Do Offer Instead
Chase checking accounts waive monthly maintenance fees if you meet one of these conditions: maintain a minimum balance (usually $500 to $1,500 depending on the account type), set up direct deposit, or maintain a linked savings account with a minimum balance. Some accounts also waive fees if you are under 18 or a student.
Chase also offers rewards on some checking accounts. Chase Sapphire Checking, for example, gives you cash back on certain purchases made with a linked Chase credit card. This is not interest—it is a rebate—but it is one way to earn money on the account.
You also get access to Chase's ATM network, online banking, mobile app, and customer service. These conveniences have value, but they do not replace the interest you would earn elsewhere.
How Chase Savings Accounts Compare on Interest
Chase Savings currently earns interest, but the rate is set by Chase and changes when the Federal Reserve adjusts its benchmark rate. As of late 2024, Chase Savings earns a rate that is typically lower than what online banks offer for the same type of account.
Online banks like Marcus, Ally, and American Express Personal Savings often pay higher rates because they have lower overhead costs. If earning interest is your priority, comparing rates across multiple banks takes 10 minutes and could earn you significantly more money over a year.
Chase does not require a minimum balance to open a savings account, and you can move money between your Chase checking and savings accounts instantly online. However, federal rules limit you to six withdrawals per month from a savings account (though this rule is no longer strictly enforced, some banks still apply it).
The Cost of Keeping Money in Non-Interest Checking
If you keep $10,000 in a Chase checking account earning zero percent, you earn nothing. If that same $10,000 sits in a savings account earning 4 percent APY (a realistic rate at an online bank), you earn $400 per year. Over five years, the difference is $2,000 in lost earnings.
Inflation makes this worse. If inflation runs at 3 percent per year, your $10,000 in checking loses $300 in purchasing power annually. You are not just earning nothing—you are falling behind.
This matters most if you keep a large emergency fund or are saving for a goal. Keeping $20,000 or $50,000 in checking to avoid fees or for convenience costs you real money. Moving that money to a savings account takes five minutes and costs nothing.
When It Makes Sense to Keep Money in Chase Checking
Keep only what you need for immediate expenses in checking: your monthly bills, groceries, gas, and a small buffer for unexpected costs. For most people, this is $1,000 to $3,000. Anything beyond that should move to savings.
If you use Chase for payroll direct deposit and have multiple accounts with them, the convenience of one login and one bank may outweigh the interest you would earn elsewhere. But even then, moving your savings to a higher-rate account costs nothing and takes no ongoing effort.
If you are under 18 or a full-time student, Chase waives checking fees without a minimum balance, which makes their checking account more practical. You still should not keep long-term savings there, but the fee waiver removes one reason to maintain a high balance.
How to Move Money from Checking to Savings at Chase
Log into your Chase online account or mobile app. Select "Transfer money" or "Move money between accounts." Choose your checking account as the source and your savings account as the destination. Enter the amount and confirm. The transfer posts instantly online, though it may take one business day to show in your savings account balance.
You can also set up automatic transfers. If you receive a paycheck via direct deposit, you can have Chase automatically move a portion to savings each payday. This removes the temptation to spend the money and builds savings without effort.
If you do not have a Chase savings account yet, you can open one online in about 10 minutes. You need a Social Security number, a valid ID, and an initial deposit (as little as $0 at some Chase branches, though online typically requires $25).
Frequently Asked Questions
Do any Chase checking accounts earn interest?
No. Every Chase checking account earns zero percent interest. Chase offers interest only on savings accounts, money market accounts, and CDs, which are separate products you must open in addition to checking.
What is the current interest rate on Chase Savings?
Chase Savings rates change based on Federal Reserve decisions and market conditions. You can see the current rate on Chase's website or by calling 1-800-935-9935. Online banks typically offer higher rates for the same type of account.
Can I earn interest by keeping a high balance in Chase checking?
No. Chase does not pay interest on any checking balance, no matter how large. High balances only help you avoid monthly maintenance fees. To earn interest, you must move the money to a savings account or another product.
How long does it take to transfer money from Chase checking to savings?
Transfers between your own Chase accounts are instant online. The money appears in your savings account balance right away, though it may take one business day to fully post. Transfers to accounts at other banks take one to three business days.
Will I lose access to my money if I move it to Chase Savings?
No. You can withdraw from Chase Savings anytime online or at a branch. There is no penalty for withdrawals. Federal rules once limited savings withdrawals to six per month, but this rule is no longer enforced by most banks, including Chase.