bank rates

A Particularly Bad Year For Chase CDs

Chase Bank signIf you haven’t found enough reason to avoid certificates of deposit from Chase Bank, there’s this: This giant of a bank has cut its rates at a faster pace than the national average.

Our analysis shows Chase CD specials in two popular terms paid close to or above the national average this time last year.

And then they began falling — fast.

The chart below demonstrates this huge drop-off. While average rates have declined gradually over time (they are at record lows), Chase’s 36-month and 60-month CDs fell off a cliff in mid-2012 and are now well below the national average.

Chart showing Chase CDs vs. average CDs 2012-2013

Today, Chase’s 36-month special pays 0.35% APY, well below the average rate of 0.49% APY. Its 60-month special pays 0.55% APY, compared with the average rate of 0.80% APY.

These and other Chase specials require a $10,000 deposit and a checking account.

That’s some loyalty bonus.

Indeed, you won’t find any average CD rates among Chase’s specials or standard deals.

The standard offers require a $1,000 minimum deposit and a checking account:

3-month CD rate is 0.02% APY versus an average rate of 0.11% APY. (Leaderboard leader is 0.51% APY.)

6-month CD rate is 0.05% APY versus an average rate of 0.16% APY. (Leaderboard leader is 0.88% APY.)

12-month CD rate is 0.05% APY versus an average rate of 0.25% APY. (Leaderboard leader is 1.05% APY.)

24-month CD rate is 0.15% APY versus an average rate of 0.40% APY. (Leaderboard leader is 1.30% APY.)

36-month CD rate is 0.15% APY versus an average rate of 0.49% APY. (Leaderboard leader is 1.40% APY.)

60-month CD rate is 0.35% APY versus an average rate of 0.80% APY. (Leaderboard leader is 1.85% APY.)

Chase’s nonrelationship rates pay even less than these.

Like most big banks, Chase asks you to put in your ZIP code on the website to find rates specific to your geographic area. The rates featured in this post are for Illinois.

To buy a Chase CD, you need to live in a state where Chase has one of more than 2,500 branches.

You can learn more about Chase at www.chase.com or call 877-242-7372.

Compare Chase’s returns with the best CD rates from scores of other banks in our extensive database.

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