Chase Bank officially opened its doors in November of 2004 in New York, NY, with assets totaling over $2.6 trillion. The company is a full-service traditional bank offering an extremely wide array of products, from loans to credit cards to savings accounts and certificates of deposit. For investors looking for fixed-rate options, you may be interested in a Chase Bank CD. APY rates on Chase Bank CDs are competitive with other traditional banks but do trail online banks.
Chase at a glance
|Chase||$1,000||0.01%||0.10%||180 days of interest for a 12-month CD; 365 days of interest for a 36-month CD|
What we like about Chase
The two biggest perks with getting a CD through Chase Bank are the mobile app, which fully tracks CDs and the long list of other products and services offered. If you are searching for a new banking home where you can house your CD investments as well as meet all of your other banking needs, Chase Bank could be a great fit. Additionally, all of these products and services (including your CDs) are manageable through the highly-rated mobile app available for iOS and Android.
Things to consider
Early withdrawal penalties at Chase Bank are a little higher than at other traditional banks. While this won’t matter if you don’t touch your CD until it matures, it’s still something to consider. When you compare Chase Bank CDs against other traditional banks, the rates are highly competitive. However, when you put the CDs next to options available at online banks, the APY rates are much lower.
What you need to know
Chase Bank CDs are available from one month to 10 years with APY rates from 0.01% up to 0.20%. APY rates on Chase CDs are based on term length and the amount of money invested. When shopping for a CD, compare all the rates for the different term lengths you’re interested in. Why? Because the better rates are not always with longer terms.
For example, a one-year CD at Chase with an investment of $0 – $9,999 nets you an APY of 0.01%. However, if you opt for a nine-month CD, the rate goes up to 0.10%.
When you look at Chase’s CD rates compared to other traditional banks, the rates are competitive. For example, a three-year CD at Bank of America has an APY of 0.15% for investments under $9,999. At Chase, the rate is slightly lower at 0.10% APY for investments under $9,999, but it provides slightly higher rates the more you invest.
There are no fees on Chase Bank CDs except if you choose to access your money early. If you do, you will incur an early withdrawal penalty. You do not need to be a current customer of Chase Bank to gain access to its CD products.
Early withdrawal penalties
You will be assessed an early withdrawal penalty if you need to access your money early through Chase. The penalty is based on the length of the CD and how long you have had it open. Compared to the rest of the industry, penalties are a bit higher with Chase. CDs under six months will be assessed up to 90 days of interest. CDs longer than this but less than two years will be assessed a penalty of up to 180 days of interest. And lastly, CDs equal to or over two years will be penalized up to a full year of interest.
For example, if you took out a $5,000 CD with the bank for three years and needed to access your money after two years, you would be assessed a penalty. Your interest earnings at the two-year mark would be somewhere around $10. The penalty for a CD of this length with Chase Bank is up to 365 days of interest. So, you would lose half of your interest earnings and only have a profit of $5 instead of $10 for accessing your funds early. As is standard, though, your principal will always be unaffected.
Other CD products
Chase Bank only offers one type of CD account. For investors looking for simplicity, this is great. Other traditional banks may offer products known as featured CDs providing higher rates based on the amount of money you invest. Chase also offers higher interest rates on higher dollar amount investments, but the bank does not refer to that as a separate product.
Currently, Chase Bank is not offering any special rate guarantees on its CD products. The rate you receive when you open your account will be 100% locked in for the duration of your investment. All gains and APYs are guaranteed with Chase Bank CDs.
How do I pick the best CD?
Picking out a CD as an investment involves a look at several characteristics at once to find the best fit for your needs. The factors you need to be looking at are the APY rate, term lengths (how long you have to leave your money untouched), early withdrawal penalties (what you lose if you have to access your money early) and the account minimum (the bare minimum you need to open an account). When you find an account meeting your needs in every one of these categories, you’ve found the best CD for you.
The bottom line
Chase Bank CDs are highly competitive with other traditional banks, but do fall short in APY rates to online banks. For consumers looking for a full-service bank with CD options, Chase CDs could be the right match, as the bank offers just about any banking products you could want. Remember, make sure to look at all terms on Chase Bank CD rates for comparable term lengths as the rates do not always increase with longer terms.