Chase savings account interest rates change with the Federal Reserve
Chase does not publish a single interest rate for all savings accounts. The rate you earn depends on which Chase savings product you hold, when you opened it, and how much money you keep in the account. As of now, Chase's standard savings account pays between 0.01% and 0.04% annual percentage yield (APY), though this varies by account type and region.
The rate Chase pays is tied to what the Federal Reserve does with its benchmark interest rate. When the Fed raises rates, banks typically raise the rates they pay on deposits within weeks or months. When the Fed cuts rates, Chase cuts what it pays savers. This means the rate you see today will not be the rate you see in six months if the Fed moves.
Chase publishes current rates on its website, but you have to navigate to the specific product page to see the actual number. The rate shown online is usually the rate for new accounts opened that day, though existing customers often earn the same rate unless they opened their account years ago at a higher rate.
Key Takeaways
- Chase savings accounts currently pay between 0.01% and 0.04% APY depending on the account type, with rates lower than most online banks.
- Chase adjusts its rates when the Federal Reserve changes its benchmark rate, so your earnings will shift if the Fed moves.
- You can find the current rate for any Chase savings product on the product page of Chase's website, not in a single rate table.
- High-yield savings accounts from online banks currently pay 4% to 5% APY, roughly 100 times more than Chase's standard savings account.
Why Chase pays less than online banks
Chase is a full-service bank with physical branches, ATMs, and customer service centers. Those branches cost money to operate. Online banks like Marcus, Ally, and American Express have no branches, so they pass the savings to depositors in the form of higher interest rates.
Chase also makes money by lending out the deposits you place in savings accounts. The less interest Chase pays you, the wider the gap between what it pays depositors and what it charges borrowers. That gap is how banks profit. Online banks operate on thinner margins and compete primarily on rate, so they keep that gap smaller.
If you value the ability to walk into a branch, deposit cash, or speak to someone in person, you are paying for that convenience through lower interest earnings. If you do not need those services, moving your savings to an online bank will earn you significantly more money on the same balance.
How to find Chase's current savings rates
Go to Chase's website and search for "savings account" or navigate to the Deposits section. Chase lists rates for these products separately: Chase Savings Account, Chase Premier Savings, and Chase Secure Savings. Each has its own rate, and the rate shown is the current APY for new accounts.
The rate you see online is usually accurate within a day, but Chase can change rates without notice. If you are comparing Chase to other banks, check all rates on the same day, because even a one-day delay can mean a rate change at one or more institutions.
Existing customers can log into their Chase account online and view their current rate in the account details section. If you opened your account several years ago, your rate may be lower than what new customers receive today, and Chase will not automatically raise it.
The difference between Chase savings and money market accounts
Chase offers both savings accounts and money market accounts. Money market accounts typically pay a slightly higher rate than savings accounts at Chase, but they also require a higher minimum balance and limit how many withdrawals you can make per month. If you need to access your money frequently, a savings account is the better choice despite the lower rate.
Chase also offers certificates of deposit (CDs), which lock your money away for a set term—usually three months to five years—in exchange for a higher rate. The longer the term, the higher the rate. If you know you will not need the money for a year or more, a CD will earn you more than a savings account, but you cannot withdraw early without paying a penalty.
What happens to your rate if the Fed cuts interest rates
If the Federal Reserve lowers its benchmark rate, Chase will lower the rate it pays on savings accounts within days or weeks. Your balance will not shrink, but the interest you earn each month will be smaller. For example, if you have $10,000 in a Chase savings account earning 0.04% APY, you earn about $0.33 per month. If Chase cuts the rate to 0.01%, you earn about $0.08 per month.
This is why the timing of where you keep your money matters. If you expect the Fed to cut rates soon, locking money into a CD at today's rate protects you from future cuts. If you expect the Fed to raise rates, keeping money in a flexible savings account lets you benefit when Chase raises its rate.
Comparing Chase to other banks' savings rates
As of the most recent data, online banks and some credit unions pay 4% to 5% APY on savings accounts, while Chase pays roughly 0.01% to 0.04%. On a $10,000 balance, that difference means earning $400 to $500 per year at an online bank versus $1 to $4 per year at Chase.
The trade-off is access. Chase lets you deposit cash at any branch and withdraw at any ATM. Online banks require you to transfer money electronically, which takes one to three business days. If you need cash immediately and do not have a local branch, an online bank becomes inconvenient.
Some people keep a small balance at Chase for branch access and cash deposits, then move the bulk of their savings to an online bank for the higher rate. This hybrid approach gives you both convenience and competitive earnings.
How interest compounds on Chase savings accounts
Chase compounds interest daily, meaning it calculates what you owe interest on each day and adds it to your balance. The next day, it calculates interest on the new, slightly higher balance. Over time, this compounding effect means you earn a tiny amount of interest on your interest.
The effect is negligible at Chase's current rates. On $10,000 earning 0.04% APY, daily compounding versus annual compounding makes a difference of less than one cent per year. At online banks paying 4% or 5%, daily compounding matters more, but it is still a small effect compared to the difference in the base rate itself.
Frequently Asked Questions
Does Chase raise savings rates automatically for existing customers?
Chase does not automatically raise the rate on existing savings accounts when it raises rates for new accounts. If you opened your account years ago, you may be earning a lower rate than new customers. You can call Chase and ask if they will match the current rate, but they are not required to do so.
Can I lock in a higher rate at Chase?
Yes, through a CD. Chase CDs pay higher rates than savings accounts, and the rate is locked for the term you choose—three months, six months, one year, two years, three years, or five years. If you do not withdraw early, you keep that rate for the entire term, even if Chase lowers rates later.
What is the minimum balance to earn interest at Chase?
Chase savings accounts do not require a minimum balance to earn interest, though some accounts have monthly fees if your balance falls below a certain threshold. Check the specific account terms, because fees can wipe out the small amount of interest you earn.
How often does Chase change its savings rates?
Chase changes rates whenever the Federal Reserve moves, which happens several times per year. The Fed typically meets eight times annually to decide on rate changes. Chase usually adjusts its rates within days of a Fed decision, though the timing is not may provide.
Is my money safe in a Chase savings account?
Yes. Chase is a member of the Federal Deposit Insurance Corporation (FDIC), which insures deposits up to $250,000 per account holder per bank. Your savings account balance is protected even if Chase fails, though this protection applies only to the balance itself, not to lost interest earnings.