Have a Chase Savings Account? You Might Be Missing Out on $400-Plus per Year
KEY POINTS
- The super low interest rates on Chase savings accounts could be costing you money.
- The most competitive APYs today are above 5%, with some reaching as high as 5.26%.
- Consider a Chase savings account if you need quick access to your money, but diversify with other accounts if you want to earn high interest.
Chase is the largest U.S. bank -- and one of the largest in the world. But for all its banking power and acumen, there's one thing Chase lacks: a high-yield savings account that can compete in today's high-rate environment.
The closest thing Chase has to a high-yield savings account is its Premier Savings. When this account is linked to a Chase Premier Plus Checking℠ or Chase Sapphire Checking account, its APY becomes a steady 0.02% on all balances. Without that relationship perk, however, the account reverts to Chase's standard savings rate of 0.01%. This is hundreds of times lower than the top rates on today's best savings accounts.
If you're storing wads of cash in a Chase account, that might make you wonder how much you could be missing out on. Well, when you start to crunch the numbers, it could be a lot.
The average American could be missing out on $400 per year
The median savings balance in 2022 was about $8,000, according to the latest survey of U.S. Family Finances by the Federal Reserve. That means if you save $8,000 in a Chase account with a 0.01% APY, you would earn $0.80 over 365 days.
How does that compare to today's best high-yield savings account? It's a wide gap. For example, here's how much the same amount ($8,000) would yield in three of today's best savings accounts.
| Savings Account | APY | Return After 1 Year |
|---|---|---|
| NexBank High-Yield Savings Account from Raisin | 4.35% | $420.80 |
| UFB Portfolio Savings Account | 4.01% | $420 |
Better yet, these two savings accounts are free and don't have any minimum balance requirements to earn the highest APY. The NexBank High-Yield Savings Account from Raisin also has a low minimum opening deposit ($1), whereas the UFB Portfolio Savings Account doesn't have one at all.
Chase savings accounts, on the other hand, have waivable account fees. The fee for the Chase Savings℠ account is $5 monthly, and the fee for the Chase Premier Savings is $25. The Chase Private Client Savings doesn't have an account fee, but you'll need a Private Client Checking with a waivable monthly fee of $35 to open it.
When is a Chase savings account worth it?
A Chase savings account might be worth it if you want to use a brick-and-mortar financial institution. The benefit of banking with a national institution is that you're never far from a branch location. You can get in-person support from banking experts, withdraw or deposit cash with few hiccups, and get help with other products and services, like loans and mortgages.
Online-only savings accounts, which have the highest APYs, don't typically offer this level of in-person support. Since they're not paying overhead costs on building leasing and staff, they're able to offer higher APYs. It's a trade-off, but might be worth it if you're not interested in those additional services.
To be sure, you could combine high-yield savings accounts with a checking account that has branch access. For example, a free Capital One 360 Checking would give you access at Capital One Cafes, as well as the ability to deposit cash at CVS or Walgreens locations (I've done this before and it's very easy).
All things considered, if most of your savings is in a Chase savings account, take a look at other top-paying savings accounts to see how much you could earn. If you have $8,000 or more in savings, you could potentially add $400 to your balance by switching.
Our Research Expert
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