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 options from other banks. As of now, Chase offers around 0.01% APY on its regular savings account—meaning $10,000 earns roughly $1 per year. Banks that specialize in high-yield savings accounts typically pay 4% to 5% APY, which is 400 to 500 times higher.

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 $100,000 and pays a slightly better rate, but still falls far short of what you would earn elsewhere. If earning interest on savings is your goal, you will need to look outside Chase.

Key Takeaways

  • Chase's standard savings account pays around 0.01% APY, which is significantly lower than high-yield accounts offered by online banks and credit unions.
  • Chase Premier Savings requires $100,000 minimum but still does not pay a high-yield rate comparable to competitors.
  • High-yield savings accounts from other institutions typically pay 4% to 5% APY and have no minimum balance or much lower minimums.
  • If you want to keep money at Chase for convenience, a savings account there works, but you will earn far less interest than you would elsewhere.

Why Chase's rates lag behind online banks

Chase is a large brick-and-mortar bank with physical branches, customer service centers, and significant overhead costs. Those expenses are built into their pricing model. Online banks and credit unions have lower operating costs because they do not maintain branch networks, so they can pass savings to customers in the form of higher interest rates.

Chase's business model also relies on lending money out at higher rates than they pay depositors. The wider the gap between what they pay you and what they charge borrowers, the more profit they make. Online banks compete primarily on deposit rates because they have fewer other revenue streams, so they push rates higher to attract customers.

Where to find high-yield savings accounts if you leave Chase

High-yield savings accounts are available from online banks like Marcus, Ally, American Express Personal Savings, and Discover. Credit unions also offer competitive rates through programs like CO-OP and Allpoint, which let you access ATMs nationwide without fees. Most of these accounts have no minimum balance requirement or require only $1 to $25 to open.

You can open an account online in minutes and transfer money from your Chase account via ACH transfer, which typically takes one to three business days. Some people keep a small amount at Chase for immediate access to branches while moving the bulk of their savings to a high-yield account elsewhere.

The trade-off between convenience and earnings

Staying with Chase means you can walk into a branch, deposit cash, and speak to a person. That convenience has value if you use it regularly. But if you rarely visit a branch and mostly move money electronically, that convenience costs you real money in foregone interest.

On $10,000, the difference between Chase's 0.01% and a 4.5% high-yield account is roughly $450 per year. On $50,000, it is $2,250 per year. Over five years, that gap compounds. You have to decide whether the ability to walk into a Chase branch is worth that cost to you.

How to move money between Chase and a high-yield account

The simplest method is an ACH transfer, which is free and takes one to three business days. Log into your Chase account, select "Transfer Money," choose "External Transfer," and enter the receiving bank's routing number and your account number there. The money moves automatically.

You can also do the transfer in reverse: log into your high-yield account and pull money from Chase using Chase's routing number and your Chase account number. Some people set up automatic transfers on a schedule—for example, moving money to savings every payday—so they do not have to remember to do it manually.

What happens to your Chase account if you move your savings elsewhere

You can keep your Chase checking account open and active while moving savings to another bank. There is no penalty for closing a savings account or letting it sit with a low balance. If you close the account, Chase will not charge you anything, though they may report the closure to credit bureaus as a closed account (which has minimal impact on your credit score).

Some people maintain a Chase savings account with a small balance as a backup or for emergency cash access, while keeping the bulk of their savings in a high-yield account. This gives you the convenience of Chase plus the earning power of a high-yield rate.

Frequently Asked Questions

Does Chase offer any account that earns more than 0.01%?

Chase Premier Savings earns a slightly higher rate if you maintain a $100,000 minimum balance, but it still does not approach high-yield rates. The exact rate varies by region and changes over time, so contact Chase directly for current figures. For most people, this account is not worth the high minimum.

If I open a high-yield savings account, do I lose FDIC protection?

No. FDIC insurance covers up to $250,000 per depositor per bank, regardless of the interest rate. A high-yield account at an FDIC-insured bank is just as protected as a Chase savings account. Check that any bank you choose displays the FDIC logo or states it is FDIC-insured.

Can I use a high-yield savings account to pay bills?

Most high-yield savings accounts do not come with a debit card or checkbook. You can transfer money to your checking account and pay from there, but it takes one to three days. If you need immediate access to pay a bill, keep a checking account at Chase or another bank and use the high-yield account purely for savings.

What if Chase raises its savings rate in the future?

Chase could raise rates at any time, but historically they lag behind competitors. Even if Chase matches current high-yield rates, you would still be better off in an account that has already proven it will pay competitive rates. Switching is free and takes minutes, so you can always move money back if circumstances change.