Have a Chase CD? You're Missing Out on a Lot of Money
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Chase is one of the world's biggest banks, so you'd think its certificate of deposit (CD) rates would at least be competitive. Spoiler alert: They're not.
Chase's 6-month CD and 1-year CD, for example, offer just 0.75% APY and 1.75% APY, respectively, at the time of this writing. Even its strongest offering -- a 5-month CD with 3.30% APY for deposits under $100,000 -- can't compete.
Thankfully, there are much better options. Here's what to know about top CDs from online-only banks, and how you can start earning today.
How to find the best CD rate for you
For those who don't know: A CD is a type of savings product where you deposit money for a set period, then earn a fixed interest rate in return. It's the perfect way to get a guaranteed return on cash you don't need immediate access to.
Chase has plenty of strengths as a bank, but its CD lineup isn't one of them. Here's your no-nonsense guide to opening a CD the right way:
- Decide on a term length: Shorter terms (3-12 months) offer quicker access to your cash, but longer terms (2-5 years) mean you can keep earning for longer.
- Shop around for the best APY: CDs from online banks usually offer the best rates.
- Deposit your cash: Move your money from an existing account to your new CD.
- Set it and forget it: If you take your money out early, you'll probably get hit with an early withdrawal penalty.
- Enjoy your earnings, or do it all again: When your CD matures, you can choose to either withdraw your money or move it into another CD.
Ready to get started? See our full list of the best CDs to lock in your high rate today.
Example: An 8-month CD with Chase vs. LendingClub
Let's say you've got $10,000 to invest in an 8-month CD. Picking Chase over a more competitive option like LendingClub could mean hundreds of dollars down the drain.
Chase's 8-month CD offers just 0.75% APY, which means you'd earn just under $50 in interest in that span. Meanwhile, LendingClub offers an 8-month CD with 4.10% APY, meaning that same $10,000 could earn you about $272 -- a difference of more than $200, just for picking the right bank.
LendingClub CDs are also FDIC-insured up to $250,000, just like traditional banks. If you can hit LendingClub's $500 minimum deposit requirement, you'll unlock some of the highest CD rates on the market today.
Want to earn more on your cash today? Open an 8-month LendingClub CD with 4.10% APY now. Or read our full review with LendingClub's full lineup of rates and terms here.
LendingClub CD
On LendingClub's Secure Website.
Our Research Expert
Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.