Review of Chase Bank’s CD Rates
Chase Bank is a consumer and commercial bank operated by JPMorgan Chase & Co., an international business firm dating back to 1799 that currently has and operations worldwide. The bank, insured by the Federal Deposit Insurance Corporation (FDIC), has 5,100 branches and 16,000 ATMs across the United States. Its products include credit cards; checking, savings … Continue reading Review of Chase Bank’s CD RatesThe post Review of Chase Bank’s CD Rates appeared first on MagnifyMoney.
Posted — UpdatedYou Can Find Higher CD Rates at Online Banks
The Best CD Rates from Online Banks
APY
Minimum Deposit Amount
Term
Ally Bank
2.40%
$25,000
1 year
Member FDIC
Synchrony Bank
2.55%
$2,000
3 years
Member FDIC
Goldman Sachs Bank USA
3.00%
$500
5 years
Member FDIC
Your deposits are FDIC-insured up to the maximum limit.How Chase CD rates compare with those of other banks
Chase CD standard rates
Chase CD relationship rates
Important information about Chase CDs
How Chase CD rates compare with those of other banks
We compared Chase’s CD offerings with some of the best CD rates currently available (you can see a sampling of those rates above). On the positive side, you’ll need less money to qualify for a Chase CD than you might at other banks. Chase allows customers to open their CDs with a minimum deposit of $1,000, which is slightly lower than qualifying amounts at some other institutions. Chase CDs are also open to applicants who do not bank with Chase, in contrast with the practices of some banks and credit unions that require member checking or savings accounts.
However, Chase CD rates are far from the most competitive rates out there. You can easily get find better APY rates at other institutions, particularly for one-year CDs. If you decide to go with Chase, look into so-called “relationship rates” with a higher APY. Relationship rates are offered to customers who link their CDs to a Chase personal checking account.
On a 12-month CD for under $10,000, for example, you’ll currently draw twice the percentage rate offered on the standard CD.
As mentioned, a minimum of $1,000 is required to open a Chase CD account, and interest is compounded daily. Depending on the term, your earned interest may be paid monthly, quarterly, semi-annually, annually — and at maturity.
Here’s an overview of the rates Chase currently offers on its CD products. All rates were reviewed at Depositaccounts.com, another LendingTree-owned company, and are current as of July 5, 2018.
[Chart-ChaseBankStandardCdRates]CD term
APY
Min. deposit amount
1-Month
0.01%
$1,000
2-Month
0.01%
$1,000
3-Month
0.01%
$1,000
6-Month
0.01%
$1,000
9-Month
0.01%
$1,000
12-Month
0.01%
$1,000
15-Month
0.05%
$1,000
18-Month
0.05%
$1,000
21-Month
0.05%
$1,000
24-Month
0.05%
$1,000
30-Month
0.05%
$1,000
36-Month
0.05%
$1,000
42-Month
0.10%
$1,000
48-Month
0.10%
$1,000
60-Month
0.25%
$1,000
84-Month
0.25%
$1,000
120-Month
0.70%
$1,000
[/Chart-ChaseBankStandardCdRates]
Chase CD relationship rates
Chase CD relationship APY rates are extended to customers who have a linked Chase checking account. You can apply online and if you use a transfer from your account to open the CD, the account can be opened the same day. The minimum deposit is, again, $1,000.
[Chart-ChaseRelationshipCDRates]CD term
$1,000 - $9,999
$10K - $99,999
$100k+
1-Month
0.02%
0.02%
0.02%
2-Month
0.02%
0.02%
0.02%
3-Month
0.02%
0.02%
0.02%
6-Month
0.02%
0.02%
0.02%
9-Month
0.02%
0.02%
0.02%
12-Month
0.02%
0.02%
0.05%
15-Month
0.05%
0.15%
0.20%
18-Month
0.15%
0.25%
0.30%
21-Month
0.15%
0.25%
0.30%
24-Month
0.15%
0.25%
0.30%
30-Month
0.15%
0.25%
0.30%
36-Month
0.40%
0.60%
0.65%
42-Month
0.40%
0.60%
0.65%
48-Month
0.50%
0.70%
0.75%
60-Month
0.60%
0.80%
0.85%
84-Month
0.60%
0.80%
0.85%
120-Month
1.16%
1.26%
1.30%
[/Chart-ChaseRelationshipCDRates]
Here’s a sample comparison between the APY on standard and relationship CDs on new accounts. To calculate on earnings at maturity, we assumed an account balance of $5,000.
Chase standard CD APY
Earnings at maturity
Chase relationship CD
Earnings at maturity
12 months at 0.01%
$.50
12 months at 0.02%
$1.00
24 months at 0.05%
$5.00
24 months at 0.15%
$65.21
48 months at 0.10%
$20.03
48 months at 0.50%
$192.72
120 months at 0.70%
$361.23
120 months at 1.16%
$611.23
Important information about Chase CDs
Fees
There are no monthly service fees, however there are $15 fees for inbound domestic and international wire transfers (waived if from another Chase account) and outbound domestic wire transfer fees. Accounts can be opened online. Deposits of more than $100,000 must be opened at a Chase branch office.
Non-Chase customer access
You do not need to have a Chase checking or savings account to open a standard Chase CD account. You’ll need to provide a Social Security number, driver’s license and contact information. Deposits must be made from a checking or savings account through your existing bank.
Automatically renewable CDs versus single-maturity CDs
Account holders have the option of opening an automatically renewable or single-maturity CD account.
With an automatically renewable CD, the account renews on the maturity date for the same term as the original one, making the new maturity date the last day of the new term. The standard rate will apply unless the owner qualifies for a relationship CD.
The single-maturity CD does not automatically renew and earns no interest following the maturity date. You may want to see if Chase is offering any promotional rates during the 10-day grace period if you plan to invest in another Chase CD using a ladder strategy.
Earning interest on a Chase CD
- Death of a CD owner
- Disability of a retirement CD owner
- Retitling of a CD
- A court ruling that the CD owner is incompetent
The bottom line:
Chase’s CD rates are likely best for customers who link the CD to their personal checking accounts because they can qualify for those juicier relationship rates. The rates improve for longer terms and larger deposit amounts. Chase’s online tools allow you to apply for relationship CDs and track your investments. The minimum amount to open a standard CD account ($1,000) is on par or slightly lower than those required by other institutions. Overall, the APY rates are not as good as you can get from some competing banks and credit unions.
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