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 less than 0.01% APY on most balances, while high yield savings accounts at online banks and credit unions commonly pay 4% to 5% APY. If you are comparing Chase to other options, the difference in earnings on $10,000 over a year could be $400 to $500.
Chase does offer a Chase Savings account and a Chase Premier Savings account (for customers with higher balances), but neither is marketed or structured as a high yield product. Both earn the same low rates. Chase's strategy has been to keep savings rates low while offering other benefits through checking accounts, credit cards, and investment services.
If you want to earn a meaningful rate on savings while keeping your money in a bank account, you will need to look outside Chase. Online banks like Marcus, Ally, and American Express Personal Savings, as well as many credit unions, offer rates that are 200 to 500 times higher than what Chase provides.
Key Takeaways
- Chase savings accounts earn less than 0.01% APY, which is far below the 4% to 5% rates available at online banks and credit unions.
- Chase Premier Savings is designed for customers with larger balances but does not pay a higher rate than standard Chase Savings.
- If you keep money in a Chase savings account, you are giving up hundreds of dollars per year in interest compared to a high yield account elsewhere.
- High yield savings accounts at online banks have no monthly fees and the same FDIC protection as Chase accounts.
Why Chase rates are so low
Chase keeps savings rates low because the bank makes money by lending out deposits at higher rates. When you deposit money in a savings account, Chase uses that money to fund mortgages, auto loans, and credit card balances—all of which earn the bank much more than it pays you in interest. The difference between what Chase pays you and what it earns on loans is the bank's profit margin.
Online banks operate with lower overhead costs (no physical branches, fewer employees) and can afford to pass more of their earnings back to depositors. They compete on rate because they cannot compete on convenience or brand recognition. Chase competes on brand, branch access, and bundled products—not on savings rates.
This is not unique to Chase. Most large national banks (Bank of America, Wells Fargo, Citibank) also offer savings rates below 0.01%. If you want a high yield rate, you have to move your money to a bank that makes it a priority.
What Chase does offer instead of high yield savings
Chase offers several products that might appeal to savers who want to stay with the bank. Chase CDs (Certificates of Deposit) pay higher rates than savings accounts, though rates vary by term length. A one-year CD might pay 4% to 5%, while a five-year CD might pay less. The catch is that you cannot withdraw the money without a penalty until the term ends.
Chase Money Market Accounts are another option. These accounts typically pay slightly more than savings accounts but less than CDs, and they come with check-writing privileges. However, Chase Money Market rates are still well below what online banks offer for high yield savings.
Chase also offers investment accounts and brokerage services through Chase You Invest, which lets you buy stocks, bonds, and mutual funds. If you are comfortable taking on investment risk, this can generate returns far higher than any savings account, but it is not a substitute for emergency savings or money you need to keep safe.
How to compare Chase to high yield savings accounts
When you are deciding whether to move money out of Chase, compare three things: the interest rate, the fees, and the access to your money. Most high yield savings accounts charge no monthly maintenance fees, no minimum balance fees, and no withdrawal fees. Chase Savings has no monthly fee, but you are paying for that convenience with a much lower rate.
High yield savings accounts are FDIC insured up to $250,000, just like Chase accounts. Your money is equally safe. The main trade-off is that online banks typically do not have physical branches, so deposits and withdrawals happen by transfer, mobile deposit, or ATM. If you need to walk into a branch regularly, that convenience has a cost—and that cost is the interest you give up.
To calculate whether it is worth moving, multiply your savings balance by the rate difference. If you have $25,000 in savings and Chase pays 0.01% while a high yield account pays 4.5%, you earn $2.50 per year at Chase and $1,125 per year elsewhere. That is $1,122.50 you are leaving on the table.
Moving money from Chase to a high yield account
If you decide to open a high yield savings account elsewhere, you do not have to close your Chase account. Many people keep a Chase checking account for everyday spending and bill pay, then move savings to a high yield account at another bank. You can transfer money between banks using an ACH transfer, which typically takes one to three business days.
To set up an ACH transfer, you will need the routing number and account number of both your Chase account and your new high yield savings account. Most banks let you initiate this transfer from either end—from Chase (to push money out) or from the new bank (to pull money in). The new bank's website usually has a form that walks you through the process.
There is no penalty for closing a Chase savings account, and no fee for transferring money out. Chase will not try to keep you from leaving, because the bank makes little money on savings accounts anyway.
When it might make sense to keep money at Chase
Keeping a Chase savings account makes sense if you value the convenience of a physical branch and you do not have much money to save. If your balance is under $1,000, the difference in interest is small enough that it might not be worth the hassle of managing accounts at two banks. If you use Chase for checking and you like having everything in one place, that simplicity has value.
Chase also offers some perks to customers who maintain high balances or use multiple products. If you have a Chase Premier Plus Checking account and link a savings account, you may get a slightly higher rate or fee waivers. These perks are modest, but they can add up if you are already using Chase for other banking needs.
The decision ultimately depends on how much money you are saving and how much you value convenience versus earnings. For most people with more than a few thousand dollars in savings, the interest difference is large enough to justify opening an account elsewhere.
Frequently Asked Questions
Can I earn more interest if I keep a higher balance in Chase Savings?
No. Chase Savings and Chase Premier Savings pay the same rate regardless of balance. The Premier version is designed for customers with higher balances, but the interest rate does not increase. You are paying for account features and customer service, not a higher rate.
Do I have to close my Chase checking account to open a high yield savings account elsewhere?
No. You can keep your Chase checking account and move only your savings to another bank. Many people do this—they use Chase for checking and bill pay, then keep emergency savings and longer-term money at a high yield account. The two accounts can work together.
What happens to my money if the online bank fails?
Your money is protected up to $250,000 by FDIC insurance, the same as at Chase. The FDIC is a federal agency that guarantees deposits at member banks. If a bank fails, the FDIC pays you back. Online banks are required to carry this insurance just like brick-and-mortar banks.
How long does it take to transfer money from Chase to another bank?
An ACH transfer typically takes one to three business days. Some banks offer faster transfers for a fee, but standard transfers are free and take a few days. Plan ahead if you need the money on a specific date.
Will Chase ever offer a high yield savings account?
Chase has not announced plans to offer a high yield savings account. The bank's business model relies on keeping deposit rates low and lending money out at higher rates. If that changes, it would represent a major shift in strategy, but there is no sign of that happening.