Certificates of Deposit offered by Chase Bank

In this post about Chase Bank CD account you will find specific requirements and rates quoted. If you are not a detail person, and just want the brief evaluation, please feel free to skip down to the summary and read about Chase CD accounts in a nut shell.

Opening a Chase CD Account

If you are already a Chase Bank customer, then you may apply to open a cd account online with Chase Bank’s online banking services. Those who are not already a customer of Chase Bank, must either visit a branch or utilize Chase Bank’s telephone services. To open a cd account online you need your social security number, driver’s license or state issued ID, and your personal contact information. You will also need to use funds from your existing Chase checking or savings account to fund the account.

Minimum Deposits

The minimum deposit amount for Chase CD accounts is $1,000 unless you are interested in the CD Specials. The CD Specials require an initial deposit in the amount of $10,000.  Remember that CD Special rates are only available for one term but they are the highest rate cds that are available from Chase Bank.

Length of Terms available from Chase Bank

Chase Bank offers Cd accounts with any term that you need. The shortest term available is the 1 month cd. Finding a CD account with this short of a term is sometimes challenging. The rate of return for a month cd is just higher than Chase’s basic savings accounts with $25,000 or less deposited.  If you are unsure about the differences between cd accounts and savings accounts or money market accounts, please see Bank Truth’s articles about the strengths and weaknesses of each type of account. The longest term available is a 120 month cd, or a ten year cd. You can select any length of term from one month to 120 months. If you know that you need an irregular length, such as 28 months, you can open a cd with that specific length.

The exception to the variety of term lengths offered by Chase Bank relates to their CD Specials. The only terms available are 9, 13, 24, 36, 48, and 60 months. Remember that you must also have a qualified Chase checking account to qualify for these higher yield cd accounts.

APY rates

CD Specials

There are three different rate categories for Chase bank certificates of deposit. There is a different schedule of rates, minimum deposit requirements, and terms available for Cd Specials. Cd special accounts have the highest cd rates but these rates are only earned on the initial term of the CD. Cd Specials also require a minimum deposit of $10,000. When the cd special account renews, the rate will decrease to either the relationship rate or the non-relationship rate. To qualify for a CD Special you must have a qualified Chase personal checking account. The CD Special rates vary with the term you select, the longer the term the higher the rate. A nine month cd account will earn an APY rate of 0.50%. The best APY rate possible is 2.25% for a 60 month certificate of deposit.

If you are able to meet the qualifications for the relationship rate, you can earn 0.15% on Chase Bank’s 1 month CDs with balances below $100,000. For balances above $99,999 a one month cd account will give you an APY rate return of 0.20%. The next rate increase happens at the 6 month term with the corresponding rate of .25%. Larger balances will earn .30%. The most significant increase happens when you reach 18 month terms for Chase Bank CD’s. The APY is .75% for the lower balance cd accounts and .80% for high balance CDs that have terms of 18 months to 23 months. The next CD rate increase happens when you agree to allow the bank to use your money for 2 years. The rate is then 1% for lower balances. Here is the point where the advantage for having high balance cd’s with Chase Bank disappears. The rate increase at the 24 month term for high balances is only.04%, for a total of 1.04%. Wow, not much of an increase for leaving a large amount on deposit for 24 months! The highest cd rate possible  is 1.50% percent for terms 60 months or longer on average balances or 1.55% APY on large balances.

Non-relationship rates

For accounts that have non-relationship rates, due to customers who do not have a qualified checking account linked to their cd account, there is not a benefit to increased balances. No matter what the balance on deposit is, you earn the same amount. These are most definitely not high yield cd accounts. The increases in APY rates happen in the same places as the cds that earn the relationship rate. Until you hit the six month term, the APY rate is only .10%. If you can agree to a term of six months, you can earn .20%. For a term equaling 18-23 months, the APY rate is .50%. The APY rate for Chase certificates of deposits cap out at 1.25% for terms that are 60 months or longer.

Penaties and Fees

Since we are talking about accounts that are trying to
be  high yield cd accounts, there are penalties if you cannot leave your funds on deposit for the agreed upon length of time. If the term of the cd is less than a year, the early withdrawal fee is $25 plus 1% of the amount withdrawn. Penalties for terms longer than 365 days are computed to be $25 plus 3% of the amount withdrawn. There are special circumstances where the penalties will be waved such as the death of the account holder. If you open a cd account with Chase bank, and have “investor’s remorse”  within seven days. Making a withdrawal will result in you being assessed a penalty computed by the above formula, unless it is less than the interest you have already earned in the account. In that event, Chase will penalize you in the amount of all earned interest earned in your cd account.

Summary

Chase cd accounts (whether earning at the relationship rate or the non-relationship rate)  fall below the national average, and most of the time they fall far below. For example, the top one year cd rate is currently offered by Connexus Credit Union. At 1.75% with no minimum balance, it literally blows Chase bank out of the water! Even Chase Bank’s “CD Specials” are not that special. They do beat the national average, but they do not come close to the top returns being offered. Chase Bank does not even make it into the top 15 rates quoted by www.bankrate.com on 12 month cds. Plus, you have to fill all the requirements in order to earn that special rate and you only get that rate once!

If you are truly looking for the best cd rates, please do your homework. Compare rates being offered to see where your money is going to work the hardest for you. As a savvy investor, it is important to shop around. Then, get to know the bank you are going to allow to use your money. If you would like to learn more about Chase Bank and how they compare to other online banks that are FDIC insured, please see Bank Truth’s review on Chase Bank as well as their many other bank reviews. If you are more visually inclined, there are also video bank reviews that you can see.