Chase Does Not Offer a Dedicated High-Yield Savings Account
Chase Bank does not have a high-yield savings account in its standard product lineup. The bank offers a regular savings account called Chase Savings, which currently earns a much lower rate than what you would find in a high-yield account elsewhere. If you bank with Chase and want a higher rate on your savings, you would need to move money to a different bank or look at other Chase products that might work for your situation.
Chase's savings rates are set by the bank and change based on the Federal Reserve's rate decisions. As of now, Chase Savings earns a rate that is typically well below what online banks and some credit unions offer. The gap between Chase's rate and high-yield rates can mean hundreds of dollars per year in lost interest on a $10,000 balance, depending on the current rate environment.
Key Takeaways
- Chase Savings is a regular savings account, not a high-yield account, and earns a significantly lower interest rate than dedicated high-yield products.
- Chase Money Market accounts also do not offer high-yield rates and are subject to withdrawal limits that may restrict how you use the account.
- If you want a high-yield rate, you will need to open an account at a different bank, such as an online bank or credit union.
- Moving money from Chase to a high-yield account at another bank takes a few days but can be done through a transfer or by linking accounts.
What Chase Savings Actually Offers
Chase Savings is a basic savings account with no monthly fee if you maintain a $300 minimum balance. The account comes with a debit card, online access, and the ability to link it to your Chase checking account for easy transfers. You can withdraw money whenever you need it without penalty, though there are no special perks or incentives tied to the account itself.
The main draw of keeping money in Chase Savings is convenience—if you already have a Chase checking account, the savings account sits in the same login and the same app. Transfers between your Chase accounts are instant. However, convenience does not make up for a rate that lags far behind what other banks pay. Over time, the difference in interest earned becomes substantial.
Chase Money Market Accounts and Why They Are Not High-Yield Either
Chase also offers a Money Market account, which is sometimes confused with a high-yield savings account. The Money Market account does pay a slightly higher rate than Chase Savings, but it is still well below what you would earn in a true high-yield account. Additionally, Money Market accounts come with withdrawal limits—you are typically allowed only six withdrawals per month before fees kick in, which makes them less flexible for everyday savings.
The Money Market account requires a higher opening balance than Chase Savings and charges a monthly fee if you fall below the minimum. For most people saving money they might need to access, the restrictions and lower rate make this option less attractive than a high-yield account at another bank.
Where to Find High-Yield Savings Accounts If You Leave Chase
Online banks and some credit unions offer high-yield savings accounts with rates that are typically two to five times higher than what Chase pays, depending on the current rate environment. Banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank all offer high-yield accounts with no monthly fees and no minimum balance requirements. Credit unions may also offer competitive rates, especially if you are a member.
The trade-off is that you lose the in-person branch access and the convenience of having everything in one place. However, most high-yield accounts come with online transfers, mobile apps, and the ability to link to your Chase checking account, so moving money between banks is straightforward. Many people keep a Chase checking account for everyday spending and bill pay while moving savings to a high-yield account elsewhere.
How to Move Money from Chase to a High-Yield Account
If you decide to open a high-yield account at another bank, you can transfer money from Chase in a few ways. The fastest method is to link your Chase checking account to the new bank's account and initiate an electronic transfer. This usually takes one to three business days. You can also have the new bank pull the money directly from Chase using your routing number and account number.
Another option is to withdraw cash from Chase and deposit it into the new account, though this is slower and less secure. Once the transfer is complete, you can close your Chase Savings account if you no longer need it. There is no penalty for closing a Chase Savings account, and you can do it online or by calling the bank.
Why Chase Rates Stay Low
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 are reflected in lower interest rates on savings products. Online banks have no branches to maintain, so they can pass the savings on to customers in the form of higher rates. This is not a flaw in Chase's service—it is a trade-off between convenience and rate.
If you value having a physical branch nearby and a single bank for all your accounts, Chase may be worth the lower rate. If maximizing the interest you earn on savings is the priority, you will need to look elsewhere. Many people do both: they keep a Chase checking account for its convenience and move savings to a high-yield account at another bank.
Frequently Asked Questions
Can I earn high-yield rates on money I keep in my Chase checking account?
No. Chase checking accounts earn little to no interest, regardless of the balance. If you want to earn interest on your money, you need a savings or money market account, either at Chase or elsewhere. High-yield rates are only available through dedicated savings products, usually at online banks or credit unions.
Does Chase ever change its savings rates to compete with high-yield accounts?
Chase adjusts its rates based on Federal Reserve decisions and competitive pressure, but historically it has not matched high-yield rates. The bank's business model relies on branch infrastructure, which limits how much it can pay on savings. If rates rise significantly across the industry, Chase may increase its rates, but the gap typically remains.
What happens to my money if I move it to another bank?
Your money is protected by FDIC insurance at any bank up to $250,000 per account type. Moving money to another bank does not change that protection. The transfer itself is safe and takes a few business days. Once the money arrives at the new bank, it is subject to that bank's terms and rates.
Can I keep my Chase checking account and move only my savings to another bank?
Yes. Many people do this. You can keep your Chase checking account for everyday spending and bill pay while opening a high-yield savings account at another bank. You can link the two accounts and transfer money between them as needed. There is no requirement to move all your accounts at once.
Are there any fees for transferring money out of Chase?
No. Chase does not charge fees for electronic transfers out of your account. You can move money to another bank without any penalty or cost. The only fees you might encounter are from the receiving bank, but most high-yield banks do not charge incoming transfer fees either.