Banks are testing the waters in terms of whether or not they can survive when it comes to offering traditional bank services, with some banks like Chase Bank already making a shift towards digital offerings. The demand for CD rates is on the rise as more people look to place their money within investment vehicles that offer stability and guaranteed returns over time.
Chase bank is one of the largest banks in the United States. Their CD rates are among some of the best available. If you’re looking for a long-term investment, Chase bank could be a good option. Read more in detail here: what is the best cd rate at chase bank.
May 2022 update: Despite the Federal Reserve’s most recent rate rise on May 4 and indications that more increases are on the horizon, Chase Bank has yet to raise CD rates this year. This might change in the near future as the Federal Reserve attempts to offload its balance sheet via quantitative tightening. Some major banks, like as Capital One and, to a lesser extent, Citibank, have already begun to raise their CD and savings rates. See down for further information.
picture credit: Christin Hume, Unsplash.com
Chase, or Chase bank, is a consumer and commercial division of the global JPMorgan Chase, which has about $2.63 trillion in assets. It is based in midtown Manhattan (New York City).
Chase Bank has 5,100 locations and 16,000 ATMs around the country. They provide a comprehensive variety of financial services to people of all ages and demographics.
However, for the sake of this analysis, we’ll concentrate on Chase Bank’s certificate of deposit program.
Despite the bank’s massive asset base, its CD rates are now dismal and lagging the national average.
Chase Bank CDs may be opened online or at a local branch and have lengths ranging from one month to ten years. If you want to open a CD online, you must first be a Chase Bank client.
This article will teach you:
All customer deposits at Chase Bank are federally insured up to $250,000 per depositor or $500,000 for joint accounts.
To establish a Chase Bank CD, a $1,000 minimum deposit is required. Chase Bank CD interest rates are graded by deposit amount in typical interest rate conditions.
There are three tiers:
- $1,000 to $9,999.99,
- $10k to $24,999.99,
- $25k to $49,999.99,
- $50k – $99,999.99,
- $100k to $249,999.99 and
- $250k extra.
The difference in APY by deposit amount is now minimal, with the return rising from 0.02 percent to 0.05 percent at $10,000.
Before checking rates online, Chase also wants you to input your zip code. Presumably, this suggests that your interest rate is affected by your location; however, we tested many scenarios in various areas around the nation and got the same rates everywhere.
CD Rates
| CD Term | APY ($1k – $9,999.99) | APY ($10K +) |
| 1 month | 0.02% | 0.02% |
| 2 month | 0.02% | 0.02% |
| 3 month | 0.02% | 0.02% |
| 6 month | 0.02% | 0.05% |
| 9 month | 0.02% | 0.05% |
| 12 month | 0.02% | 0.05% |
| 15 month | 0.02% | 0.05% |
| 18 month | 0.02% | 0.05% |
| 21 month | 0.02% | 0.05% |
| 24 month | 0.02% | 0.05% |
| 30 month | 0.02% | 0.05% |
| 36 month | 0.02% | 0.05% |
| 42 month | 0.02% | 0.05% |
| 48 month | 0.02% | 0.05% |
| 60 month | 0.02% | 0.05% |
| 84 month | 0.02% | 0.05% |
| 120 month | 0.02% | 0.05% |
According to recent FDIC statistics, the current national average for a 12-month CD is around 0.17 percent APY, while the average for a 5-year CD is roughly 0.32 percent APY.
Interest Calculation
Interest is compounded everyday, and the regularity with which it is paid out is up to you. You may pay it monthly, quarterly, semi-annually, or yearly, depending on the period.
Penalties for Early Withdrawal
Penalties for Early Withdrawal for Chase Bank CDs are as follows:
- CDs with periods of less than 6 months pay interest for 90 days.
- CD periods of 6 to 24 months pay interest for 180 days.
- CDs with maturities of 24 months or higher pay interest for 365 days.
Fees that may be charged
Although Chase Bank CD accounts do not have monthly maintenance fees like some of their other accounts, you may be charged fees depending on how you intend to transfer cash.
Wire Transfer Fees:
| Type | Fee |
| Incoming wires, both domestic and foreign | $15 for each transfer OR $15 per transfer OR $0 if the transfer was originally sent with the help of a Chase banker or using chase.com or Chase Mobile. if the transfer was made with the assistance of a Chase banker or via Chase.com or Chase Mobile. |
| Outbound Domestic Wire (in-branch) | $35 for each transfer |
| Outbound Domestic Wire (online) | $25 for each transfer |
| International consumer USD/FX wire (in-branch) | $50 for each transfer |
| USD international consumer wire (online) | $40 for each transfer |
| International consumer FX wire (online) | If the amount is $5,000 USD or more, you will be charged $5 each transfer. |
Having a banker assist you in a physical branch will always be more expensive than transferring cash online.
If you want to open a CD with a value of $1,000,000 or more, you must do it in a local branch.
Period of Grace
A certificate of deposit’s Period of Grace is the brief window of time in which the deposit holder may move funds into and out of their certificate of deposit without facing a penalty. During this time you may also roll your funds into another deposit with a different term.
All Chase Bank CDs come with a standard 10 day Period of Grace for CDs with terms of 14 days.
Prior to your CD maturity date, Chase Bank will send you an email reminder, but you should also set up your own reminders.
Why are the CD rates at Chase Bank so low?
Despite the fact that rates are rising and the Federal Reserve has suggested that additional rate rises are on the way in 2022, several major banks have failed to raise their CD and savings rates.
What gives?
The plain reality is that many banks do not need your funds at this time. These huge banks have not needed to attract consumer capital with competitive savings rates on long-term CDs or other deposit accounts since key rates have been at record lows for so long, thanks to the Fed’s prior qualitative easing initiatives (among other things).
However, as the Federal Reserve prepares for quantitative tightening to battle inflation, this might alter in the near future.
Alternatives to Think About
We propose internet banks or nationally accessible credit unions if you’re seeking for FDIC-insured CDs and/or savings accounts. Some of these banks are currently paying close to 1.0 percent APY on various savings accounts and approximately 2.50 percent APY on long-term CDs.
If FDIC insurance isn’t a priority for you, check out our list of 12 alternatives to CDs and savings accounts for non-banking options.
Despite having extensive coverage throughout the country and internationally, Chase Bank’s current CD rates are well below the national average.
If you prefer in-person banking and want government protection on your money, a local credit union can be a good option. They’ll almost certainly surpass Chase’s CD rates, plus your money will be guaranteed up to $250k by the NCUA (credit unions’ version of the FDIC).
Check for Ally bank or Discover as prospective parking alternatives if you value high rates and prefer internet banking to conventional banking.
The “bank of america cd rates” are the best CD rates available. They’re also available for a shorter period than many other banks, making them more attractive.
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