Chase does not offer a standalone high-yield savings account

Chase Bank does not have a dedicated high-yield savings account product. The bank's standard savings accounts — including its basic savings account and money market accounts — earn interest rates well below what you would find at online banks or credit unions. As of early 2024, Chase's regular savings accounts earn rates in the range of 0.01% to 0.04% annual percentage yield (APY), depending on your balance and account type.

If you already bank with Chase for checking or other services, moving your savings to a higher-rate account elsewhere does not require closing your Chase relationship. You can keep your checking account where it is and open a savings account at a different institution specifically for the higher yield.

Key Takeaways

  • Chase's savings accounts earn significantly less than high-yield savings accounts at online banks, which typically offer 4% to 5% APY or higher.
  • Chase offers money market accounts as an alternative, but these also earn below-market rates and usually require higher minimum balances.
  • You do not need to leave Chase entirely to get a high-yield account — you can open one elsewhere while keeping your Chase checking account.
  • The difference between Chase's rate and a high-yield account can add up to hundreds of dollars per year on a $10,000 balance.

Why Chase's rates lag behind online banks

Chase is a large brick-and-mortar bank with thousands of branches and ATMs across the country. Maintaining that physical infrastructure costs money, and those costs get passed along in the form of lower interest rates on savings products. Online banks have no branches to maintain and can pass their cost savings directly to customers through higher rates.

Chase's business model also relies heavily on customers keeping money in low-yield accounts. The bank profits by lending out deposits at higher rates than it pays savers. When a customer earns 0.01% on savings while Chase lends that same money at 7% or 8% for a mortgage or auto loan, the spread is enormous. Online banks compete for deposits by offering rates closer to what the Federal Reserve charges, which narrows that spread but attracts more customers.

Chase money market accounts as an alternative

Chase does offer money market accounts, which sometimes earn slightly higher rates than basic savings accounts. However, these accounts typically require a minimum opening deposit of $2,500 to $25,000 depending on the specific product, and the interest rates still fall short of what you would earn elsewhere. Chase money market accounts currently earn between 0.04% and 0.10% APY.

Money market accounts also come with a limited number of withdrawals per month — usually six — before fees apply. High-yield savings accounts at online banks typically have no withdrawal limits. If you need regular access to your money, a money market account at Chase adds unnecessary restrictions without compensating you with a better rate.

How much you lose by staying with Chase

The rate difference between Chase and a high-yield savings account compounds over time. On a $10,000 balance, Chase's 0.01% rate would earn you about $1 per year. The same $10,000 in a high-yield account earning 4.5% APY would earn $450 per year — a difference of $449. Over five years, that gap grows to more than $2,000 when you account for compound interest.

Even smaller balances add up. A $5,000 emergency fund earning 0.01% at Chase generates 50 cents annually. At 4.5% APY elsewhere, it generates $225 per year. For someone building savings on a modest income, that difference can fund groceries or a car repair.

Where to find high-yield savings accounts if you leave Chase

Online banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank currently offer rates between 4% and 5% APY on high-yield savings accounts. Credit unions also frequently offer competitive rates, especially if you are a member. You can search for current rates on comparison sites, but always verify the rate directly on the bank's website before opening an account, since rates change frequently.

When you open an account elsewhere, you can transfer money from Chase using an external transfer (which takes one to three business days) or by providing your new bank's routing number so they can pull the funds directly. You do not need to close your Chase account or move your paycheck — you can simply redirect new savings to the higher-rate account.

When it might make sense to keep money at Chase

If you maintain a large balance at Chase for the convenience of branch access or because your paycheck deposits there, it may be worth keeping a small emergency fund in a Chase savings account for immediate access. However, any money you do not need within the next few days should move to a high-yield account. The rate difference is too large to ignore for money sitting idle.

Some people also use Chase's savings account as a temporary holding place while they wait for transfers to clear to another bank. This is reasonable for short periods, but do not let money sit in a Chase savings account for months or years simply because it is convenient.

Frequently Asked Questions

Does Chase have any savings account that earns a competitive rate?

No. Chase's highest-earning savings products are money market accounts at around 0.10% APY, which is still far below the 4% to 5% you can earn at online banks. If competitive rates are your priority, you will need to open an account outside Chase.

Will I lose FDIC protection if I move my savings to an online bank?

No. Online banks like Ally and Marcus are FDIC-insured just like Chase. Your deposits are protected up to $250,000 per depositor, per bank. Moving your money does not reduce your protection — it just means you earn more interest on it.

Can I keep my Chase checking account and move only my savings?

Yes. You can open a high-yield savings account at any bank while keeping your Chase checking account active. Many people do this to maintain the convenience of Chase branches while earning better rates on savings elsewhere.

How often do high-yield savings rates change?

Rates change based on Federal Reserve decisions and bank competition. When the Fed raises or lowers its benchmark rate, online banks typically adjust their savings rates within days or weeks. Chase usually moves more slowly. Check your account's current rate monthly if you want to stay informed.

What if I need my money quickly — is an online bank slower to access?

Online banks let you withdraw money just as quickly as Chase does. You can transfer funds to your checking account in one to three business days, or use an ATM network (many online banks partner with ATM networks for fee-free withdrawals). You do not sacrifice speed by moving to an online bank.