For the past few years, banks have offered paltry interest rates on their savings accounts. But that's changing now -- gradually. As theto try to control record-high , the interest you earn on your and will likely increase, if it hasn't already. Many banks have already increased their savings account rates several times, with some offering options at or above 2% APY.
Your annual percentage yield, or APY, is the compounding interest rate you earn on your savings. The higher the APY, the more you'll earn in interest over time. But though some banks, both those with physical branches and those that operate online-only, are responding to the current economic situation by incrementally increasing APYs, many of the larger national banks have kept rates low.
Chase is the largest bank in the US, with total assets of $3.8 trillion as of June 30. With more than 4,700 branches in 48 states plus Washington, DC, and 16,000 ATMs nationwide, customers are never too far from access to cash. Chase offers two main types of, in addition to a number of other financial products and services.
Read on for more information about Chase's savings account rates and how they stack up against competitors.
Chase Savings℠ account options
Chase offers two savings accounts: Chase Savings℠ and Chase Premier Savings℠. The main differences between the two boil down to interest yields -- both are quite low -- and monthly service fees, which are based on minimum balance requirements.
Chase Savings℠ account options
|Account name||Interest rate||APY||Minimum deposit||Monthly service fee*|
|Chase Savings Premier||0.02%||0.02%||None||$25|
*Fees may be waived if certain requirements are met
Note: Rates as of Aug. 31, 2022. APYs vary by region, and Chase's savings account may not be available everywhere. You'll need to check your ZIP code on Chase's website to see your options.
Chase Savings℠ standard account
The Chase Savings℠ standard account offers a 0.01% APY, which is extremely low. There's a $5 monthly fee for this account, which can be waived if you transfer $25 or more from a linked checking account or link a qualifying Chase checking account.
You might consider this option if you are looking for a physical bank with convenient locations across the country or are already a Chase customer and prefer to keep all of your accounts under one roof. Otherwise, there are plenty of better options on the market.
Other national banks, including Bank of America, also charge a $5 fee for introductory savings accounts, and offer relatively low APYs. Bank of America's APY is also 0.01% for its standard savings account.
Chase Premier Savings℠
Chase's higher-end savings account isn't much better, offering a paltry 0.02% APY. The monthly service fee for this account is $25, but it can be waived if you maintain a $15,000 daily balance or link a qualifying Chase checking account.
For comparison, Wells Fargo also offers just 0.02% APY on its upper-tier savings account, but only charges $12 a month -- a fee that can be waived if you meet the daily minimum requirement of $3,500.
Still, unless there are reasons for you to keep your savings at Chase, there are plenty of better options on the market. For example, you could earn roughly 50 times the interest from other banks, netting you about $150 more per year on a starting balance of $15,000.
How Chase Savings℠ account APYs compare to other banks
With savings interest rates topping out at 0.02%, there aren't many financial reasons to keep your money in a Chase Savings℠ account. Here's how Chase compares with our top picks for best high-yield savings accounts:
How Chase savings accounts compare to other banks
|Account name||APY||First year interest earnings on $5,000|
|Chase Premier Savings||0.02%||$1.00|
*Varo's savings account enables you to start earning 1.20% APY and then qualify to earn up to 5.00% APY.
What's the current situation on savings interest rates?
Savings account interest rates have been extraordinarily low in recent years. However, savings account rates are beginning to rise.When the Fed raises its federal funds rate -- as it has several times this year already -- it increases the interest rate banks charge each other for borrowing and lending money. To offset the costs, banks increase interest rates on consumer accounts, like credit cards and loans, which makes it more expensive for customers to borrow money. Savings account rates also go up, attracting new customers who want to get higher interest on their savings.
What's the average savings account interest rate?
For most of early 2022, the average savings account interest rate in the US was approximately 0.06%. Since then, it's been slowly ticking up, reaching 0.08% in June and 0.13% in August. Many banks with physical branches, which historically have lower savings rates than online-only banks, have started increasing interest rates for savings accounts.
Which banks offer the highest savings interest rates?
Interest rates have fluctuated widely throughout June in response to the rapidly evolving economic situation in the US. That said, as of August 31, 2022, here are some banks offering high APYs.
SoFi, an online-only bank, offers a hybrid checking and savings account with an APY as high as 2.00% (when you set up direct deposit). Physical banks are jumping in, too, such as Citibank and Capital One which have high-yield savings accounts with APYs up to 2.00% and 1.75%, respectively. Capital One's 360 Performance Savings account doesn't include a fee, but Citibank's Accelerate Savings account does, at $4.50 per month.
What are high-interest alternatives to savings accounts?
I bonds -- secure government-backed investments sold directly to the public -- offer a considerably more appealing interest rate of 9.62%. The drawback is that your money is tied up for one year, and you'll have to pay a penalty for early withdrawal, forfeiting the final three months of interest. After five years, you can take out the money from your I bond without penalty.
How often can you withdraw money from a Chase Savings℠ account?
You can withdraw from Chase savings℠ accounts six times per month without penalty. After you reach that limit, Chase charges you $5 for each subsequent withdrawal for a maximum of three times, or a total penalty of $15.
This withdrawal limit used to be the standard in the US due to a Federal Reserve rule called Regulation D. In April 2020, the Fed eliminated this rule to allow consumers unfettered access to their savings throughout the pandemic. As a result, some banks have eliminated the withdrawal limit, or increased the number of withdrawals before charging you.
Do all savings accounts have monthly fees?
Brick-and-mortar banks like Chase typically charge a monthly fee for a savings account. Online banks often do not charge monthly maintenance fees and have higher interest rates. That's because online banks don't have physical locations to manage, which reduces their overhead and allows them to offer customers higher APYs or no-fee savings accounts.
Monthly fees are usually waived if you maintain a set minimum balance. If you can't satisfy that requirement, consider a savings account without monthly fees such as Capital One's 360 Savings account.
If you expect to save only a couple hundred dollars throughout the year with the Chase Savings account℠, the monthly service fee could significantly cut into your savings.
For example, if you deposit $20 every month in your first year, you'll only earn one cent in interest by the end of the year, but will have paid $60 in maintenance fees.
All rates are current as of Aug. 31, 2022.
More banking advice
- Best No Overdraft Fee Bank Accounts