Chase’s awful interest rates on savings accounts
If you have at least 5,000 and no understanding of economics, JPMorgan Chase Bank, N.A. would like to hold your money for you. I had logged in to check the balance of my checking account when I noticed a promotion for Chase’s savings accounts. I’ve reproduced the ad here for your amusement. Check out the horrible rates on Chase’s savings plans, as of 01/30/2007. From the Chase.com web site:
Set up hassle-free automatic monthly transfers from your Chase checking account to your Chase savings account in Chase’s Automatic Savings Program. Each month, you’ll watch your savings grow — plus we’ll get you started with $50!
Here’s what to do:
- Visit your local Chase branch by February 28, 2007.
- Deposit $5,000 in new money and ask a banker to set up automatic monthly transfers of $100 or more from your Chase checking account to your Chase Savings account and complete three consecutive automatic monthly transfers.
- Watch your account. We’ll automatically deposit $50 into your Chase personal savings account.
Get a $50 cash bonus and a convenient way to save! Just visit your local Chase branch and talk to a banker today.
Hurry! This offer ends February 28, 2007.
Offer valid 1/2/2007 through 2/28/07. An initial deposit of $5,000 in new money (money not currently held at Chase or its affiliates), and establishment of automatic monthly transfers of $100 or more in Chase’s Automatic Savings Program from your Chase personal checking account to your Chase personal savings account are required to qualify for the offer. Limit one automatic monthly transfer-related reward/premium per customer/per calendar year. Offer not available on account conversions or in combination with any other offer. Cash bonus will be automatically deposited into your Chase personal savings account within 4-6 weeks after making your initial deposit and after completion of your third consecutive automatic monthly transfer.
Rates are effective for 01/30/2007 only, are variable and are subject to change without notice. Fees may reduce earnings. Web site rates are generally updated by 11:00 AM ET. Balance tiers are applicable as of the effective date of these rates and may change at Chase’s discretion. Rates may vary by market.
Chase Savings Balance Annual Percentage Yield All Balances 0.40% Chase Money Market Savings Balance Annual Percentage Yield $0 - $4,999 1.00% $5,000 - $9,999 1.10% $10,000 - $24,999 1.40% $25,000 + 1.60% Chase Premier Savings Balance Annual Percentage Yield $0 - $9,999 1.25% $10,000 - $24,999 2.25% $25,000 - $49,999 2.50% $50,000 - $99,999 3.51% $100,000 - $249,999 3.51% $250,000+ 3.51%
Someone has his head in the sand. None of these rates are competitive with online savings accounts, and the higher yielding accounts are going to incur fees. If you are earning .40% on your savings, you’re losing money, not saving it. You at least need to keep up with inflation, which is roughly 3% per year.
