Chase savings accounts pay between 0.01% and 4.35% APY, depending on the account type and current market conditions

Chase offers several savings products, and the interest rate you earn depends on which account you open. The Chase Savings Account (their basic option) currently pays around 0.01% APY on most balances. The Chase Premier Savings account pays slightly higher rates that tier upward based on your balance—typically ranging from 0.01% to 0.04% APY depending on how much you hold. The Chase Money Market Account pays the highest rates Chase offers to individual savers, currently around 4.35% APY on balances of $25,000 and above, with lower rates on smaller balances.

These rates change frequently—sometimes weekly—because they follow the federal funds rate set by the Federal Reserve. When the Fed raises rates, Chase typically raises its savings rates within days or weeks. When the Fed cuts rates, Chase cuts theirs. You can check the current rates on Chase's website or by calling 1-800-935-9935, because the rates listed here will shift before you finish reading this sentence.

Key Takeaways

  • Chase Money Market Accounts pay the highest rates (currently up to 4.35% APY), while basic Chase Savings Accounts pay around 0.01% APY.
  • Interest rates at Chase change frequently and follow the Federal Reserve's rate decisions, so the rate you see today may be different next week.
  • Higher balances in tiered accounts like Premier Savings and Money Market earn higher rates, so moving money into these accounts only makes sense if you meet the balance thresholds.
  • Interest compounds daily at Chase but is credited monthly, meaning you earn interest on your interest each day even though you see the total only once a month.
  • Chase savings rates are typically lower than online-only banks and credit unions, so comparing rates across institutions before opening an account will show you whether Chase is competitive for your situation.

How Chase calculates and credits interest

Chase compounds interest daily, which means the bank calculates what you owe based on your balance every single day, including the interest you earned yesterday. This daily compounding works in your favor because you earn interest on your interest. However, Chase credits the interest to your account only once per month, usually on the last business day of the month. So you see the total added balance once monthly, but the calculation happens every day behind the scenes.

The formula is straightforward: your daily balance multiplied by the annual percentage yield (APY), divided by 365 days. If you have $10,000 in a Chase Money Market Account earning 4.35% APY, you earn roughly $1.19 per day (though the exact amount varies slightly based on the number of days in the month). Over a year, that adds up to $435 in interest, assuming the rate stays constant and you do not withdraw money.

The difference between basic savings and money market accounts at Chase

Chase offers two main savings vehicles for individuals, and they differ in both the rates they pay and the features they include. The Chase Savings Account is designed for everyday savers who want a simple, no-frills product. It has no monthly fee, no minimum balance requirement, and no limit on how many times you can withdraw per month. The tradeoff is the interest rate: currently around 0.01% APY, which means $10,000 earns about $1 per year.

The Chase Money Market Account is structured more like a hybrid between a savings account and a checking account. It comes with a debit card and check-writing privileges, which makes it useful if you want to access your money without transferring it first. The interest rates are significantly higher—currently up to 4.35% APY on balances of $25,000 or more. However, there is a monthly fee (currently $25) if your balance falls below $25,000, so this account only makes sense if you can maintain that threshold. The same $10,000 in a Money Market Account would earn roughly $435 per year at the current rate, minus the monthly fee if your balance drops.

Why Chase rates are lower than competitors

Chase is a large national bank with physical branches in most states, and that infrastructure costs money. Online-only banks like Marcus, Ally, and American Express Personal Savings have no branches, no tellers, and no physical overhead, so they can pass those savings to customers in the form of higher interest rates. As of now, many online savings accounts pay 4.50% to 5.35% APY on all balances with no minimum, no tiering, and no monthly fees. Credit unions often pay competitive rates as well, especially if you are a member.

The tradeoff is convenience and familiarity. If you already bank with Chase, have a Chase checking account, and use Chase branches regularly, the slightly lower rate may be worth it to keep everything in one place. If you are opening a savings account purely to earn interest and do not need Chase's branch network, you will earn more money elsewhere. The difference between 0.01% and 4.50% on $10,000 is roughly $449 per year—real money worth considering.

How to find Chase's current savings rates

Chase publishes its current rates on chase.com under the Savings section. You can also call 1-800-935-9935 to speak with a representative who can quote you the exact rate for your state and account type. Rates vary slightly by state due to different regulatory environments, so the rate in California may differ from the rate in New York by a fraction of a percent.

When you compare rates, look at the APY (annual percentage yield), not just the interest rate. APY includes the effect of compounding, so it is the true number that tells you how much you will earn in a year. Also check whether there are any monthly fees, minimum balance requirements, or withdrawal limits that could eat into your earnings or restrict your access to your money.

What happens to your interest if you withdraw money

If you withdraw money from a Chase savings account before the end of the month, you still earn interest on the balance you held for that portion of the month. Chase calculates interest daily, so you are not penalized for withdrawing early. For example, if you have $10,000 on the first of the month and withdraw $5,000 on the 15th, you earn interest on $10,000 for 14 days and interest on $5,000 for the remaining days of the month.

There is no penalty for withdrawals at Chase savings accounts or money market accounts. However, federal law previously limited savings account withdrawals to six per month, though that rule was suspended in 2020 and has not been reinstated. Chase does not impose its own withdrawal limits, so you can move money in and out as often as you need.

Frequently Asked Questions

Does Chase charge a monthly fee on savings accounts?

The basic Chase Savings Account has no monthly fee and no minimum balance. The Chase Money Market Account charges $25 per month if your balance falls below $25,000. If you maintain the $25,000 minimum, there is no fee.

Can I move money between my Chase checking and savings accounts without a fee?

Yes. Transfers between your own Chase accounts are free and typically complete within one business day. You can move money as often as you want without penalty.

What if I open a Chase savings account and the rate drops next month?

You are not locked into a rate. Chase can change its savings rates at any time, and you have no obligation to keep the account open if the rate becomes uncompetitive. You can close it and move your money to another bank without penalty.

Do I pay taxes on the interest I earn?

Yes. Interest earned in a savings account is taxable income. Chase will send you a 1099-INT form in January if you earned $10 or more in interest during the previous year. You report this on your tax return.

Is my money safe if I keep it in a Chase savings account?

Yes. Chase is a member of the Federal Deposit Insurance Corporation (FDIC), which means deposits up to $250,000 per account type are protected if the bank fails. Your savings account and money market account are each covered separately up to $250,000.