Chase does not offer a traditional high yield savings account

Chase Bank does not have a product called a high yield savings account. The bank offers a Chase Savings Account and a Chase Premier Savings Account, but both pay rates far below what you will find at online banks or credit unions. As of early 2024, Chase savings accounts earn less than 0.01% annual percentage yield (APY) on most balances, while high yield savings accounts at other banks pay 4% to 5% APY.

If you bank with Chase for checking or other services and want to keep your savings there for convenience, you will earn very little interest. If earning interest on savings is your main goal, you will need to look elsewhere — either to an online bank, a credit union, or a money market account at another institution.

Key Takeaways

  • Chase savings accounts earn less than 0.01% APY, which means your money grows almost not at all compared to high yield accounts elsewhere.
  • Chase does offer a Premier Savings Account with slightly higher rates for customers who maintain large balances, but it still does not compete with online banks.
  • Online banks like Marcus, Ally, and American Express Personal Savings pay 4% to 5% APY on high yield savings accounts with no minimum balance.
  • If you want to stay with Chase, a money market account may pay slightly more than savings, but you should compare the rate to online alternatives first.
  • Many people keep a small Chase savings account for emergency access while holding most savings in a high yield account at another bank.

What Chase savings accounts actually pay

Chase offers two main savings products. The standard Chase Savings Account has no monthly fee if you maintain a $300 minimum balance, but the interest rate is negligible — typically under 0.01% APY. This means a $10,000 balance earns less than $1 per year in interest.

The Chase Premier Savings Account requires a higher minimum balance (usually $25,000 or more, depending on your region) and offers a slightly better rate. Even so, it typically pays between 0.01% and 0.05% APY — still far below what you can earn elsewhere. Chase does not publicly advertise these rates prominently because they are not competitive.

Chase's rates stay low because the bank has millions of customers and does not need to offer high rates to attract deposits. Online banks, which have lower overhead costs and fewer physical branches, can afford to pay much more.

How high yield savings accounts work at other banks

A high yield savings account is a regular savings account that pays a much higher interest rate. These accounts are offered by online banks (banks with no physical branches), some credit unions, and a few traditional banks trying to compete for online customers. The accounts are FDIC insured up to $250,000, just like Chase savings accounts, so your money is equally safe.

High yield savings accounts typically require no minimum balance, charge no monthly fees, and allow you to withdraw money whenever you need it — the same flexibility as a Chase savings account. The main difference is the interest rate. A $10,000 balance in a 4.5% APY account earns about $450 per year, compared to less than $1 at Chase.

Interest rates on high yield accounts change when the Federal Reserve raises or lowers its benchmark rate. When rates are high (as they have been since 2023), high yield accounts pay 4% to 5%. When rates fall, these accounts will pay less, but they typically adjust faster and higher than Chase does.

Chase money market accounts versus high yield savings

Chase does offer a Money Market Account, which is a hybrid between a checking account and a savings account. It usually pays a slightly higher rate than savings accounts and comes with a debit card and check-writing ability. However, Chase money market rates are still well below what online banks pay for high yield savings.

A Chase money market account may make sense if you want check-writing ability and are willing to accept a lower rate for the convenience. But if your goal is to earn the most interest possible, a high yield savings account at an online bank will outpace it significantly. Compare the current rates before deciding — Chase's money market rate changes, and occasionally it may be closer to competitive than usual.

Why people keep Chase savings accounts anyway

Many customers maintain a small Chase savings account even though the rate is poor. The reasons are practical: they already have a Chase checking account, they like having all their money in one place, or they want when ready access to cash without waiting for a transfer from another bank.

A common strategy is to keep $500 to $2,000 in a Chase savings account for true emergencies and keep the bulk of savings in a high yield account elsewhere. The interest you lose on that small balance is minimal, and you gain the peace of mind of having cash available when ready without a transfer delay.

If you do this, make sure your high yield account is at a bank that allows transfers to and from Chase. Most online banks offer this, and transfers typically take one to three business days.

How to move money from Chase to a high yield account

Opening a high yield savings account at another bank does not require you to close your Chase account. You can keep both open at the same time. To move money, you have two options: transfer it electronically, or withdraw it and deposit it elsewhere.

The easiest method is an electronic transfer. Log into your Chase account online, go to the transfer section, and link your new high yield savings account using its routing number and account number. Chase will send small test deposits to verify the account, then you can transfer money. This usually takes one to three business days.

Alternatively, you can withdraw cash from Chase and deposit it at the new bank, though this is slower and less convenient. Some online banks also offer a service where they pull money directly from your Chase account on your behalf — ask when you open the account whether this option is available.

Frequently Asked Questions

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

Chase's Premier Savings Account pays slightly more for customers with large balances, typically between 0.01% and 0.05% APY. This is still far below high yield rates elsewhere. Chase also offers CDs (certificates of deposit) that pay higher rates if you lock your money away for a set period, but these are not savings accounts.

Is my money safe in a high yield account at an online bank?

Yes. High yield accounts at online banks are FDIC insured up to $250,000, the same as Chase. The FDIC insurance protects your money if the bank fails, regardless of whether it has physical branches. Online banks are regulated the same way as traditional banks.

Can I transfer money back to Chase if I change my mind?

Yes. You can transfer money from a high yield account back to Chase using the same electronic transfer method. There are no penalties for moving money between your own accounts at different banks. You can close the high yield account whenever you want.

What happens to my high yield rate if interest rates fall?

High yield account rates will decrease when the Federal Reserve lowers rates. However, online banks typically lower their rates more slowly than Chase does, so you may still earn more at an online bank even after a rate cut. Compare rates periodically to make sure you are still getting a good return.

Do I need a minimum balance to open a high yield savings account?

Most online banks that offer high yield savings have no minimum balance requirement. You can open an account with $1 and add money later. Chase, by contrast, requires a $300 minimum for its standard savings account and $25,000 or more for its Premier account.