Chase savings accounts do earn interest, but the rate is very low
Chase offers interest on most of its savings accounts, but the rate changes based on market conditions and the account type you choose. As of now, Chase savings accounts earn between 0.01% and 0.04% annual percentage yield (APY), depending on which product you pick. That means on a $10,000 balance, you might earn $1 to $4 per year—far less than what online-only banks or money market accounts pay.
The reason Chase rates are low is simple: Chase is a large brick-and-mortar bank with physical branches and higher operating costs. Online banks with no branches can pass savings to depositors in the form of higher rates. Chase prioritizes branch access and customer service over competitive interest rates.
If earning more interest is your goal, you should compare Chase's rates to other options before opening an account. The difference between 0.01% and 4% APY (what some online banks offer) is substantial over time, especially if you're holding a large emergency fund or short-term savings.
Key Takeaways
- Chase savings accounts earn between 0.01% and 0.04% APY, which is significantly lower than rates offered by online banks or money market accounts.
- Chase's lower rates reflect the cost of maintaining physical branches and customer service; you are paying for convenience and access, not interest earnings.
- The account type matters: Chase Premier Savings and Chase Savings accounts have different rate tiers based on your balance.
- If you want to maximize interest on savings, moving money to an online bank or money market fund will earn you substantially more.
Chase savings account types and their current rates
Chase offers two main savings products: Chase Savings and Chase Premier Savings. Chase Savings is the basic option with no minimum balance requirement. Chase Premier Savings requires a higher opening deposit and offers slightly better rates if you maintain a larger balance.
Both accounts earn interest, but the rate depends on your account balance tier. Higher balances earn higher rates, though even the top tier remains well below what online banks pay. You can check the current rates on Chase's website or by calling a branch, since rates change periodically and vary slightly by region.
Chase also offers money market accounts, which are a different product from savings accounts. Money market accounts at Chase typically pay higher interest than savings accounts, but still lag behind online alternatives. If you want to compare, ask a Chase representative for the current APY on both savings and money market products.
How interest compounds and when you see it
Chase compounds interest daily and deposits it to your account monthly. That means the bank calculates your interest every day based on your balance, then adds the total to your account once a month. The more money you have in the account, the more interest you earn each day.
You will see the interest payment appear as a deposit in your account statement each month. It will be labeled as "interest paid" or similar. The amount will be small—often less than a dollar—but it is real money that belongs to you.
The interest you earn is taxable income. Chase will send you a 1099-INT form at the end of the year if you earned $10 or more in interest. You must report this on your tax return.
Why Chase rates are lower than online banks
Online banks like Marcus, Ally, and American Express Personal Savings offer rates between 4% and 5% APY on savings accounts. Chase's rates are a fraction of that. The gap exists because online banks have no physical branches, no tellers, and no retail overhead. They pass those savings to customers through higher interest rates.
Chase operates thousands of branches across the country. Maintaining buildings, hiring staff, and providing in-person service costs money. Chase recovers those costs partly through fees and partly by paying lower interest rates on deposits. You are trading higher interest for the ability to walk into a branch and speak to someone in person.
This trade-off makes sense for some people. If you need to deposit cash regularly, make frequent withdrawals, or prefer face-to-face banking, Chase's convenience may be worth the lower rate. If you are holding money for a specific goal and rarely touch it, an online bank will earn you significantly more.
Moving money between Chase and higher-yield accounts
If you decide to move your savings to a higher-paying account, you can do it without closing your Chase account. Open a new account at an online bank, then transfer money from Chase using an external transfer. Most online banks accept ACH transfers, which are free and take one to three business days.
You can keep your Chase account open for everyday banking and move only your savings to the higher-yield account. Many people use this strategy: checking and emergency cash stay at Chase for convenience, while longer-term savings sit in an online bank earning real interest.
If you do close your Chase savings account, make sure you have no pending transactions and that your balance is zero. Chase will not charge you a fee to close, but confirm the account is fully closed before opening elsewhere.
Fees that reduce your interest earnings
Chase charges a monthly maintenance fee on some savings accounts, typically $5 to $12 depending on the account type. This fee is deducted from your balance each month and directly reduces the interest you earn. If you earn $2 in interest but pay a $5 monthly fee, you actually lose $3.
You can avoid the maintenance fee by meeting certain requirements, such as maintaining a minimum balance (usually $300 to $500) or setting up direct deposit. Check your account terms to see which waiver applies to you. If you cannot meet the requirement, the fee will eat into any interest you earn.
Online banks typically charge no monthly maintenance fees, which is another reason their net earnings are higher than Chase's even before comparing interest rates.
When a Chase savings account still makes sense
A Chase savings account is reasonable if you need frequent access to your money, prefer in-person banking, or already have a Chase checking account and want to keep everything in one place. The interest rate is not competitive, but the convenience may be worth it for short-term savings or an emergency fund you access regularly.
A Chase savings account is less sensible if you are trying to build wealth, save for a specific goal years away, or want to maximize returns on money you do not touch often. In those cases, the difference between 0.01% and 4% compounds into real money over time.
You do not have to choose one or the other. Many people keep a small emergency fund at Chase for quick access and move larger savings to an online bank. This hybrid approach gives you both convenience and competitive interest rates.
Frequently Asked Questions
Does Chase charge a fee to open a savings account?
No, Chase does not charge an opening fee for savings accounts. However, some accounts have a monthly maintenance fee ($5 to $12) that you can avoid by maintaining a minimum balance or setting up direct deposit. Check your specific account terms to see which waiver applies.
Can I earn more interest by keeping a larger balance at Chase?
Yes, Chase offers tiered rates based on your balance. Higher balances earn slightly higher APY. However, even the top tier at Chase remains far below what online banks pay, so moving money to an online bank will still earn you more interest regardless of balance size.
What happens to my interest if I withdraw money mid-month?
Chase calculates interest daily based on your balance each day, then deposits the total once a month. If you withdraw money mid-month, you earn interest only on the balance you held before the withdrawal. You do not lose interest you already earned.
Is the interest I earn at Chase taxable?
Yes, all interest earned is taxable income. If you earn $10 or more in a calendar year, Chase will send you a 1099-INT form to report on your tax return. Keep your monthly statements to track interest earned throughout the year.
Can I transfer money from Chase to an online bank for free?
Yes, you can transfer money from Chase to another bank using an ACH transfer, which is free and takes one to three business days. Both Chase and the receiving bank support ACH transfers. You can initiate the transfer through Chase's website or mobile app.