bank rates

Dear Chase: Raise Cash By Raising Rates

It offers below average rates to its checking account customersLooks like JPMorgan Chase can use some extra cash now that it has reported a $2 billion loss on some bad investments.

Tsk, tsk.

But we’re doubting this financial giant will look to its lowly bank depositors for extra money — unless it finds another way to squeeze out fees.

To invite its customers’ investments, it would have to offer competitive deposit rates, which it doesn’t.

Chase’s 60-month CD special, for example, pays just 1.10% APY.

That doesn’t even beat the average annual yield large banks and thrifts are offering for 60-month CDs. And while that 1.13% isn’t a record low, it’s darn close.

Did we mention that all of Chase’s CD specials require a $10,000 minimum deposit and a checking account?

So, so not appealing.

Although the 36-month CD special is above average at 0.75% APY, we don’t consider it a win either (although this is your best bet if you must buy a CD from this bank). It just beats the average annual yield for 36-month CDs, which is 0.69%.

Neither are close to the top nationally available 36-month CD rate on our CD Rates Leaderboard. AmTrust Direct owns that 1.55% APY.

Chase’s standard offerings require a lower $1,000 minimum deposit and a checking account. They’re all below average:

6-month CD rate is 0.20% APY versus an average rate of 0.22% APY. (Leaderboard leader is 0.81% APY.)

12-month CD rate is 0.25% APY versus an average rate of 0.33% APY. (Leaderboard leader is 1.15% APY.)

24-month CD rate is 0.40% APY versus an average rate of 0.52% APY. (Leaderboard leader is 1.20% APY.)

36-month CD rate is 0.50% APY versus an average rate of 0.69% APY. (Leaderboard leader is 1.55% APY.)

Like most big banks, Chase asks you to input your ZIP code on the website to find rates specific to your geographic area.

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

There are definitely better deals out there, and you’ll find them if you compare Chase’s returns with the best CD rates from scores of other banks in our extensive database.

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Comments (3)
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3 Existing Comments
  1. gerald said:
    on May 13th at 09:53 am

    actually in my area they have some good deals..1500$ in a new checking account gets you a 200$ bonus,,6 months requirement to maintain the 1500$ balanmce..150$ bonus with new 10,000$ saving account…new credit card add 500$ on card within 3 months and get 150$ bonus!

  2. Sabuz said:
    on June 6th at 09:26 am

    The overnight ireanbtnk rate is the rate that banks charge for revolving credit ( overdraft, if you will) to other banks. The risk premium is how likely the bank thinks it is that you will not be paying back the money on schedule. Profits is what is left over once the risk-free interest rate and the risk premium have been subtracted.One of the problems in the present financial crisis is that banks operated with negative real profits because they set the risk premium too low.

  3. Kathy at Bankaholic said:
    on June 27th at 07:09 am

    These rates haven’t changed as of today.