What Chase CDs pay right now and how the rates compare

Chase offers certificates of deposit through its retail branches and online platform, with rates that change based on the term length you choose and the current interest rate environment. As of your search, you can find Chase CD rates on their website or by calling 1-800-935-9935, but the specific rate you receive depends on the term (3 months to 5 years are common options), the amount you deposit, and whether you open the account in a branch or online.

Chase CD rates are typically lower than rates offered by online-only banks, because Chase is a large national bank with branch overhead and doesn't compete primarily on rate. If you're comparing options, you'll often find higher rates at banks like Marcus, Ally, or American Express, which have no physical branches. The trade-off is that Chase offers the convenience of a local branch, the ability to speak to someone in person, and integration with your existing Chase checking account.

CD rates move with the Federal Reserve's decisions about short-term interest rates. When the Fed raises rates, new CDs pay more; when the Fed cuts rates, new CDs pay less. This means a CD you opened six months ago may pay a different rate than one you open today, and that's normal.

Key Takeaways

  • Chase CD rates vary by term length and change regularly, so you should check their current offerings before deciding on a term.
  • Online banks typically offer higher CD rates than Chase, but Chase provides branch access and account integration if that matters to you.
  • Once you open a CD, the interest rate is locked in for the full term, so you know exactly what you'll earn.
  • Early withdrawal from a Chase CD triggers a penalty that reduces your earnings, so only lock up money you won't need before maturity.

How Chase CD terms and penalties work

When you open a Chase CD, you choose how long to lock up your money—typically 3 months, 6 months, 1 year, 2 years, 3 years, or 5 years. Longer terms usually pay higher rates, because you're giving Chase the use of your money for a longer period. A 5-year CD will pay more than a 3-month CD almost every time.

The interest rate you receive is fixed for the entire term. If you open a 2-year CD at 4.50%, you'll earn 4.50% for the full 2 years, even if rates drop or rise. When the CD matures, Chase will either return your principal plus interest to your account, or automatically renew it into a new CD at whatever rate Chase is offering at that time.

If you need to withdraw money before the CD matures, Chase charges an early withdrawal penalty. The penalty amount depends on the term: shorter-term CDs have smaller penalties, and longer-term CDs have larger ones. For example, a 3-month CD might have a 10-day interest penalty, while a 5-year CD might have a 150-day interest penalty. This means if you withdraw early, you lose some or all of the interest you've earned, and possibly some of your principal. Check the specific penalty for the term you're considering before you commit.

CD ladder strategy and when to use it

A CD ladder is a way to balance higher rates with access to your money. Instead of putting all your savings into one long-term CD, you split the amount across multiple CDs with different maturity dates. For example, you might open five 1-year CDs with equal amounts, staggered so one matures every few months. As each one matures, you can either withdraw the money or roll it into a new CD at whatever rate is current.

This approach gives you three advantages: you lock in some higher rates from longer terms, you have regular access to portions of your money without penalties, and you can take advantage of rate increases by reinvesting maturing CDs at higher rates if the Fed has raised rates. The downside is that you earn less on the shorter-term CDs than you would on one long-term CD, and it requires more active management.

A ladder makes sense if you have a lump sum you don't need immediately but might need access to within the next few years. It's less useful if you're confident you won't touch the money for 5 years, because a single 5-year CD will pay more.

Chase CD rates versus other banks and savings accounts

Chase CD rates are competitive within the large national bank category, but they typically trail rates at online banks and credit unions. This is because Chase's business model includes physical branches, customer service centers, and advertising—costs that online banks don't have. Those banks pass the savings to depositors through higher rates.

High-yield savings accounts at online banks often pay rates close to or equal to CD rates, with the advantage that you can withdraw money anytime without penalty. If you're not sure you'll leave the money untouched for the full CD term, a high-yield savings account might be a better fit, even if the rate is slightly lower.

Credit unions sometimes offer competitive CD rates and may have lower early withdrawal penalties than Chase. If you're a member of a credit union, it's worth checking their rates alongside Chase's. You can compare current rates across multiple banks using rate-tracking websites, though you'll need to verify the current rates directly with each bank before opening an account.

How to open a Chase CD and what to bring

You can open a Chase CD online through their website, by phone at 1-800-935-9935, or in person at a Chase branch. Online and phone applications are fastest and require no paperwork in advance. In-branch applications take longer but let you speak to someone directly if you have questions.

To open a CD, you'll need to provide your Social Security number, date of birth, and address. If you're opening the account online or by phone, you'll also need to verify your identity, which Chase does by asking security questions or requesting a photo ID. If you already have a Chase checking account, the process is faster because Chase already has your information on file.

You'll fund the CD by transferring money from an existing Chase account, or by providing bank details for an external account. Chase will initiate the transfer, which typically takes 1 to 3 business days. Once the money arrives and the CD opens, the interest rate is locked in and the term begins.

What happens when your CD matures

When your CD reaches its maturity date, Chase will notify you by mail or email (depending on your account settings) a few days before. At that point, you have three options: withdraw the money, let it automatically renew into a new CD, or move it to a savings or checking account.

If you do nothing, Chase will automatically renew the CD into a new term of the same length at whatever rate they're offering on that day. This is convenient if you want to keep the money locked up, but it means you might miss a rate increase if rates have risen since your CD opened. To take advantage of higher rates, you need to actively choose a new CD or move the money elsewhere.

If you withdraw the money, it will be deposited into your Chase checking or savings account within 1 to 2 business days. There's no penalty for withdrawing after maturity—the penalty only applies if you withdraw before the maturity date.

Tax reporting and CD interest

Interest you earn on a Chase CD is taxable income. Chase will send you a Form 1099-INT by January 31 of the following year showing how much interest you earned. You'll report this amount on your federal tax return, and you may owe state and local taxes on it as well, depending on where you live.

If you earn more than $10 in interest from all sources combined in a year, Chase is required to issue a 1099-INT. If you earn less, you still owe tax on the interest, but Chase won't send a form. Keep your own records of CD interest earned, especially if you have multiple CDs or accounts.

The tax impact is one reason some people prefer CDs in retirement accounts like IRAs, where the interest grows tax-deferred. If you have questions about whether a CD belongs in a regular account or a retirement account, a tax professional can help you decide based on your situation.

Frequently Asked Questions

Can I withdraw money from a Chase CD before it matures?

Yes, but you'll pay an early withdrawal penalty that reduces your earnings. The penalty amount depends on the CD term—shorter terms have smaller penalties, longer terms have larger ones. The penalty is calculated as a number of days' worth of interest, so the longer your CD has been open, the less it costs you to withdraw early.

What's the minimum amount I need to open a Chase CD?

Chase requires a minimum deposit to open a CD, but the amount varies by term and changes over time. Check Chase's website or call 1-800-935-9935 to confirm the current minimum for the term you're interested in. Minimums are typically $1,000 or $2,500.

Do I need to be a Chase customer to open a CD?

No, you can open a Chase CD even if you don't have a Chase checking or savings account. However, you'll need to provide bank details to fund the CD, either from an external account or by setting up a new Chase account at the same time.

Are Chase CDs FDIC insured?

Yes, Chase CDs are FDIC insured up to $250,000 per depositor, per bank, per account type. This means if Chase fails, the FDIC will cover your CD balance up to that limit. If you have multiple CDs at Chase, they're all covered separately as long as they're in different account categories (for example, one in your name alone and one in a joint account).

What happens if interest rates drop after I open my CD?

Your CD rate stays the same for the full term—that's the whole point of locking in a rate. If rates drop, you benefit because you're earning more than new CDs pay. If rates rise, you're earning less, but you can't change the rate on an existing CD without withdrawing early and paying the penalty.