Chase Savings Account Interest Rates – Forbes Advisor
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If you want to open a new savings account, America’s largest bank has several options to consider. Chase Bank offers two savings accounts, a basic and a premium, to help you earn interest on your money.
But don’t count on anything other than puny interests. Although Chase savings account rates are comparable to those you’ll find at other major banks, they’re well below what you might get at an online bank. If you’re considering saving with Chase, here’s a look at what you can expect when it comes to interest rates. Rates are correct as of April 27, 2022.
Chase Savings Account Interest Rates
Chase offers two savings account options: Chase Savings and Chase Premier Savings. This is an overview of the maximum interest rates for both accounts. Rates are correct as of April 27, 2022.
Overview of Chase Savings Interest Rates
Chase has no minimum deposit requirements for any of its savings account options. Both accounts have monthly fees.
The fee for Chase Savings is $5 per month, which you can waive by:
- Maintain a minimum balance of $300
- Link an eligible Chase checking account
- Scheduling an automatic savings deposit of $25 or more each month from a Chase checking account
Chase Premier Savings has a monthly service fee of $25, which can be waived if you maintain a minimum balance of $15,000 or link to a Chase Premier Plus Checking or Chase Sapphire Checking account.
A Premier Savings Account gives you the opportunity to earn what Chase calls “relationship rates”. To qualify for these higher interest rates, you will need to:
- Link your account to Chase Premier Plus Checking or Chase Sapphire Checking
- Perform at least five transactions during a monthly statement period with your linked checking account
The relationship rates are double the usual interest on the Chase check, but still very meager: 0.02% versus 0.01%.
Interest on Chase Savings and Chase Premier Savings accounts is compounded and credited monthly, based on the balance collected daily. You can build your balance using an automatic savings feature that will make recurring deposits from most Chase checking accounts.
In addition to monthly maintenance fees, account holders will also want to avoid Chase’s $5 savings withdrawal limit fee. It is triggered by every six withdrawals in a monthly statement period.
All withdrawals and transfers count towards the six-per-month limit, including ATM and ATM transactions. Chase caps withdrawal fees at three per month, or $15 in total.
Regular Chase Savings customers pay fees for non-Chase ATM transactions and incoming wire transfers, but Chase Premier Savings customers receive these services free of charge.
How much can you earn?
When opening a savings account, you want to consider whether your money will have plenty of room to grow. So how much can you earn with Chase savings account rates?
Here’s what you’d earn with either Chase account over a 10-year period, assuming you started with an initial deposit of $1,000:
As you can see, you won’t earn much interest with either account. Again, this is typical of traditional large bank savings accounts.
This chart assumes you are not making any further deposits beyond the initial $1,000. You can use an online savings calculator to estimate the interest you could earn with additional monthly deposits.
Chase vs other banks
The national average savings rate for deposit accounts tracked by the FDIC was 0.06% in April 2022. This puts Chase’s savings account interest rates below average.
Chase rates are also well below the best savings account rates you can find at online banks.
Some of the best online banks offer interest rates on savings accounts ranging from 0.25% to 5.00%. It’s more common to find high-yield savings accounts with APYs between 0.50% and 0.60%.
Saving with an online bank means you give up the convenience of being able to go to a branch, which you could easily do if you have a Chase savings account. The banking giant has more than 4,700 branches. But if earning the most interest on your savings is your first priority, then opting for an online bank might make sense.
Other Chase savings options
In addition to savings accounts, Chase also offers certificates of deposit accounts (CDs). Currently, Chase offers 17 CD options with terms ranging from one month to 120 months.
Chase CD rates are only marginally higher than the unimpressive Chase Savings Account rates. You would need to deposit a larger amount of money into a Chase CD to earn the highest rates.
For example, if you open a 12 month CD with a minimum deposit of $1,000, you will earn an APY of 0.02%. A deposit of $10,000 or more would qualify you for an APY of 0.05%.
As with Chase savings account interest rates, you can easily find higher CD rates at an online bank.
Find the best online savings accounts of 2022
If you already have a checking or other account with Chase, you may decide to open a savings account for added convenience. But Chase savings account rates aren’t the best out there. You might want to spend some time researching the best savings account rates online to find the bank that’s right for you.
About Chase Bank
Chase Bank is the consumer banking arm of JPMorgan Chase & Co., the top U.S. bank by deposits, according to Federal Reserve data. With more than 4,700 branches and 16,000 ATMs nationwide, as well as online and mobile access, Chase customers can manage their accounts and take advantage of a wide range of personal and business banking products and services from almost everywhere in the world.
Frequently Asked Questions (FAQs)
Is Chase a good bank to open a savings account?
You can open a Chase savings account if you already do other business there. But interest rates on Chase savings accounts are meager and below the national average savings rate. Chase savings accounts also have monthly maintenance fees, although you can avoid these.
Which Chase savings account is the best?
The Chase Premier Savings Account offers a slightly higher interest rate and APY than the regular Chase Savings Account. But you’ll need an eligible Chase checking account to open a Premier Savings Account.
Why are Chase savings rates so low?
Interest rates on Chase savings accounts are comparable to those offered by other major traditional banks. It is not uncommon for larger banks to offer lower savings rates because they have less need to attract new customers for deposit accounts.
Are Chase savings accounts safe?
Chase is an FDIC member bank, which means your accounts are protected in the unlikely event that the bank goes bankrupt. FDIC protection limits cover you for up to $250,000 per account at a bank. Savings accounts are generally a safe place to keep your money because there is virtually no risk of losing money.