What Chase CDs offer and how their rates work
Chase offers certificates of deposit (CDs) through its retail branches and online platform, with rates that change based on the term length you choose and current market conditions. A CD is a savings account where you agree to leave money untouched for a fixed period — typically three months to five years — in exchange for a may provide interest rate that is usually higher than a regular savings account.
Chase's CD rates vary by term and by whether you open the account in a branch or online. Online CDs typically pay more than branch CDs because Chase has lower overhead costs. The rates also shift weekly or monthly depending on where the Federal Reserve sets its benchmark interest rate, so the rate you see today may not be the rate available next week.
When your CD matures (the term ends), Chase automatically renews it at the current rate unless you tell them not to. You can withdraw your money without penalty once the term is up, but if you withdraw early, Chase charges a penalty that reduces your earnings or principal.
Key Takeaways
- Chase CD rates change frequently and depend on the term length, so you should check the current rates on Chase's website before deciding.
- Online CDs pay higher rates than branch CDs because Chase passes along savings from lower operating costs.
- Early withdrawal penalties vary by term length and can erase months or years of interest, so understand the penalty before you commit.
- Your CD is FDIC-insured up to $250,000, which means your principal and interest are protected if Chase fails.
- You can open a CD with as little as $1,000 at most Chase branches, though some online products have different minimums.
How to find current Chase CD rates
Chase publishes current rates on its website under the Savings & CDs section. You can view rates without logging in, and the page shows both branch and online rates side by side. The rates listed are accurate at the time you view them, but they can change the next day, so if you see a rate you like, you should open the account within a day or two if possible.
You can also call Chase at 1-800-935-9935 or visit a local branch to ask about current rates. Branch staff can open a CD for you on the spot, but they will offer you the branch rate, not the higher online rate. If you want the online rate, you must open the account through Chase's website or mobile app.
Early withdrawal penalties and what they cost you
Chase charges a penalty if you withdraw money from your CD before the maturity date. The penalty is expressed as a number of months of interest — for example, a three-month penalty on a one-year CD means you lose three months' worth of the interest you earned. On longer terms (three years or more), the penalty is typically six months of interest.
The penalty is deducted from your interest first. If you have earned less interest than the penalty amount, the remaining penalty comes out of your principal. For example, if you opened a one-year CD with $5,000 and withdrew after two months, you might have earned $30 in interest, but the penalty could be $60 — so you would get back $4,970 instead of $5,030.
You can avoid the penalty by waiting until the maturity date to withdraw. If you think you might need the money before then, look for a no-penalty CD, though these typically pay lower rates than standard CDs.
Comparing Chase CDs to other banks
Chase's CD rates are competitive but not always the highest available. Online banks and credit unions sometimes offer higher rates because they have even lower costs than Chase's online platform. The difference might be 0.25% to 0.50% per year, which adds up over time on larger balances.
Chase's advantage is convenience: if you already bank with Chase, you can open a CD without switching banks, and you can manage it through the same app or website you use for checking and savings. You also have access to branch staff if you need help. If you are willing to move money to a different bank for a higher rate, you can compare offers on sites like Bankrate or DepositAccounts, which list rates from hundreds of banks and credit unions.
FDIC insurance and account safety
Chase CDs are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account holder per bank. This means if Chase fails, the FDIC will pay you back your principal and all accrued interest up to $250,000. If you have more than $250,000 to invest in CDs, you can open multiple CDs in different names (for example, one in your name alone and one in joint names with a spouse) to increase your coverage.
Your money is safe while it sits in the CD — Chase cannot use it for loans or investments without your permission, and the rate you locked in is may provide for the full term, no matter what happens to market rates.
How CD terms and rates interact
Shorter-term CDs (three months to one year) usually pay lower rates because you are tying up your money for less time. Longer-term CDs (three to five years) usually pay higher rates to compensate you for locking in your money longer. However, this is not always true — sometimes short-term rates are higher than long-term rates if the Federal Reserve is expected to cut rates soon.
The trade-off is flexibility versus reward. A three-month CD lets you access your money quickly if you need it, but you earn less interest. A five-year CD locks in a higher rate, but you cannot touch the money without paying a penalty. Most people choose a one-year or two-year CD as a middle ground.
Opening a Chase CD and what happens at maturity
You can open a CD online through Chase's website or mobile app, or in person at a branch. Online accounts typically require a minimum of $1,000, though this can vary. You will need to provide your Social Security number, date of birth, and address so Chase can verify your identity and comply with banking regulations.
When your CD matures, Chase sends you a notice (usually by mail or email) telling you the maturity date and the new rate at which your CD will automatically renew. You have a grace period — usually 10 days — to withdraw the money or move it to a different account without penalty. If you do nothing, the CD renews at the new rate for the same term length. If you want to withdraw the money or move it elsewhere, you must act before the grace period ends.
Frequently Asked Questions
Can I add money to a Chase CD after I open it?
No. A CD is a fixed account — you deposit a lump sum at the beginning, and that amount stays the same until maturity. If you want to invest more money, you must open a separate CD. Some people open multiple CDs on a staggered schedule (called a CD ladder) so that one matures every few months, giving them regular access to some of their money.
What is the difference between a CD and a high-yield savings account?
A CD locks in a rate for a fixed term and penalizes early withdrawal. A high-yield savings account has no term and no penalty — you can withdraw anytime — but the rate can change at any time. CDs usually pay more because you give up flexibility. If you might need the money within a year, a savings account is safer.
Do I have to renew my CD when it matures?
No. When your CD matures, you can withdraw the full amount (principal plus interest) without penalty, or you can let it renew at the new rate. You have a grace period of about 10 days to decide. If you do nothing, it renews automatically.
Are Chase CDs taxed?
Yes. The interest you earn on a CD is taxable income in the year you earn it. Chase will send you a 1099-INT form at the end of the year showing how much interest you earned, and you must report this on your tax return. The interest is taxed at your ordinary income tax rate, not at the capital gains rate.
Can I open a Chase CD if I do not have a checking account?
Yes. You can open a CD without having any other Chase account. However, you will need to provide identification and pass Chase's verification process. If you open online, you may need a Chase debit card or bank account to fund the CD, so opening in a branch might be easier if you have no existing Chase relationship.