Chase does not offer a traditional high yield savings account

Chase's standard savings account earns less than 0.01% annual percentage yield (APY) on most balances, which is far below what other banks pay. If you're looking for a high yield savings account — typically paying 4% to 5% APY depending on the market — Chase is not the place to find it. Chase prioritizes checking accounts and investment products over savings rates.

Chase does offer a few alternatives that might work depending on what you're trying to do with your money. Understanding what Chase actually provides, and what it doesn't, helps you decide whether to keep your savings there or move them elsewhere.

Key Takeaways

  • Chase's regular savings account pays less than 0.01% APY, making it unsuitable for building savings through interest.
  • Chase offers a money market account that pays slightly more than savings, but still well below high yield rates offered by online banks.
  • Chase's main strength is its branch network and checking account features, not savings rates.
  • If high yield savings is your goal, you'll need to open an account at an online bank or credit union, even if you keep your checking at Chase.

Chase's money market account as a partial alternative

Chase offers a money market account that pays more than its savings account, but the rate still lags behind dedicated high yield savings accounts at online banks. The exact rate varies based on your balance and changes with market conditions. As of recent months, Chase's money market account pays around 0.01% to 0.35% APY depending on the tier, which is substantially lower than what you'd earn elsewhere.

Money market accounts at Chase come with a debit card and check-writing privileges, which savings accounts don't offer. This makes them useful if you need occasional access to the money, but the rate difference doesn't justify using one purely for savings growth.

Why Chase rates are so low

Chase keeps savings rates low because it doesn't need to compete for savings deposits. The bank makes money primarily through lending (mortgages, auto loans, credit cards) and investment services. Customers often keep savings at Chase simply because they already have a checking account there, even if the rate is poor.

Online banks and credit unions, by contrast, have lower overhead costs and rely on savings deposits to fund their lending. They pass those savings to customers through higher rates. Chase's physical branches, customer service, and brand recognition cost money — and those costs are reflected in lower deposit rates.

What to do if you want high yield savings with Chase checking

You don't have to choose between Chase and high yield savings. Many people keep their primary checking account at Chase for convenience and branch access, then open a high yield savings account at an online bank like Marcus, Ally, or American Express Personal Savings. The two accounts can work together: you use Chase for everyday spending and bill pay, and the online account for money you're saving.

Transferring money between banks typically takes one to three business days through ACH transfer, which is free. Some people set up automatic transfers from their Chase checking to their high yield savings account each payday, treating it like a forced savings plan. This approach gives you the best of both worlds — Chase's convenience and a competitive savings rate.

Credit unions as another option

If you belong to a credit union, check their savings rates before opening an account elsewhere. Many credit unions offer high yield savings accounts that compete with online banks, sometimes paying 4% to 5% APY on balances up to a certain limit (often $20,000 to $35,000). Credit union rates are sometimes higher than online banks because they're member-owned and operate on a non-profit basis.

Credit unions typically require membership based on where you work, where you live, or membership in a specific organization. If you're already a member, comparing their rates to online banks takes just a few minutes and might save you the step of opening a new account elsewhere.

Chase's investment and CD options

Chase offers certificates of deposit (CDs) that pay higher rates than savings accounts, but these lock your money away for a set period (typically three months to five years). If you have money you won't need for a year or more, a CD might make sense. The rate is may provide for the term, so you're protected if rates drop — but you're also locked in if rates rise.

Chase also offers brokerage accounts and investment products through its Chase Invest platform. These are separate from savings accounts and involve market risk, so they're not a substitute for high yield savings if you need the money to stay safe and accessible.

Frequently Asked Questions

Can I transfer money from Chase to a high yield savings account easily?

Yes. Most online banks let you link your Chase checking account and transfer money for free using ACH transfer, which takes one to three business days. Some banks also offer faster transfers through services like Zelle or wire transfer, though wire transfers may have fees.

Will opening a high yield savings account elsewhere affect my Chase relationship?

No. Banks don't penalize you for having accounts elsewhere, and opening a savings account at another bank doesn't change your Chase checking account or credit. You can keep both open indefinitely.

What's the difference between a money market account and a savings account at Chase?

Chase's money market account pays slightly more interest and comes with a debit card and check-writing ability, while a savings account pays less and has limited withdrawal options. Neither pays competitive rates compared to online banks, so the difference is minimal for savings purposes.

Do I need to close my Chase savings account to open a high yield account elsewhere?

No. You can keep your Chase account open and simply stop using it for savings. Some people keep a small balance for emergency access or maintain the account for its history. Closing it is optional.