Show Overall RankingOverviewAmerican Express National Bank Member FDIC is an FDIC-insured online bank located in Salt Lake City, Utah. It offers two savings products. First, the bank has high-yield certificates of deposit with terms ranging from six to 60 months. Second, it offers a high-yield savings account. In this review, we’ll look at the accounts AMEX offers, its rates and fees, and how the online bank works. Editor's NoteYou can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. Opinions are the author's alone. This content has not been provided by, reviewed, approved or endorsed by any advertiser, unless otherwise noted below. The American Express® Personal High Yield Savings Account works like most savings accounts. Funds deposited in the account earn interest. You can withdraw money from the account at any time. Keep in mind, however, that you are limited to six withdrawals per month. This limitation is not set by American Express (FDIC Certificate #35328). It’s actually a federal law: “Reserve Requirements for Depository Institutions (12 C.F.R. 204, Regulation D) is a Federal Reserve Board regulation. It limits the number of withdrawals and transfers from a savings or money market account. Regulation D (Reg. D) applies to all U.S. banking institutions offering such accounts. Personal Savings customers may make a maximum of six (6) Reg. D-covered transfers or withdrawals per statement cycle. There is no limit on the number of deposits that can be made.” The interest rates offered by American Express are competitive with other online banks. The yield on the savings account is currently 2.15% Annual Percentage Yield (as of 10/6/22) and is subject to change. This rate is competitive with the highest available yield on savings accounts that we track. Deal of the Day: Chase is now offering a $200 cash bonus when opening a Total Checking® Account. No minimum deposit and all deposits are FDIC insured up to the $250,000 per depositor maximum. Learn more CDsAmerican Express currently offers CDs in terms ranging from six to 60 months. As with most CD products, the interest goes up for longer term CDs. It’s important to note, however, that there may be penalty fees for taking your money out of the CD before it matures. The amount of the penalty depends on the term of the CD:
Because of the penalties, it’s important to make sure you can keep your money in the CD during the entire term. If you are unsure, consider a shorter term CD or the savings account option. I’ve not listed the CD rates because quite frankly, they suck. When compared to other online banks like Discover, Ally, and CIT, the CD interest rates for American Express don’t hold water. The value in owning personal savings products from American Express account comes from the high yield savings account. Related: Learn how to build a CD rate ladder Fees, Minimums & Support
Opening an American Express® Bank AccountHere’s how you sign-up for an American Express account: Step 1: Gather Your Information You will need this information for both primary and joint applicants:
Step 2: Submit Application Here you’ll choose the type of account you want to open, either a High Yield Savings account or a Certificate of Deposit. You can apply online or by phone at 1-800-446-6307. Step 3: Receive Confirmation You will receive an online and/or email confirmation when your application is approved. Additionally, you will receive an American Express® Personal Savings Welcome Kit in the mail within a few days. Step 4: Fund Your Account You can fund your online account either by linking your current bank account or by mailing a check. That’s why you’ll need your existing bank account and routing number. Online banks are generally funded electronically by transferring funds from your primary checking account. The idea is to move money you want to save to an online bank such as American Express in order to earn a higher interest rate than most brick and mortar banks pay. Savings accounts and CDs aren’t designed for everyday spending. That’s what a checking account is for. So the money you transfer to an account at American Express should be for longer term savings. These are also good options for emergency savings. That being said, you can fund an account at American Express via check if you want. You also get your money out of the bank the same way you deposited it, via electronic transfer. Pros and Cons
Why I Bank With American ExpressChasing interest rates is a difficult job, especially in a market like this one, where they're constantly changing. Sometimes that means American Express has a top interest rate, and sometimes it means American Express does not. Seeing as I'm not tucking away hundreds of thousands, I choose to use my online savings accounts to track savings. American Express is one of those accounts. I’ve always enjoyed my interactions with their customer service team, and their interface is simple to use. Transferring money in has always been quick, and if you find yourself in need of an online savings account (not CDs!), American Express® Personal High Yield Savings Account has my recommendation. Listen to our show about online banks Is American Express FDIC?American Express National Bank is an FDIC-insured bank and your deposits are insured as long as it does not exceed the allowable coverage limit.
Which bank gives 7% interest on savings account?The average monthly balance requirement is Rs 2,000 to Rs 5,000. Ujjivan Small Finance Bank is offering interest rates up to 7 percent on savings accounts. Equitas Small Finance Bank is offering interest rates up to 7 percent on savings accounts. The average monthly balance requirement is Rs 2,500 to Rs 10,000.
What are the cons of a highFour cons of high-yield savings accounts. Withdrawal limits. All savings accounts -- including high-yield savings accounts -- used to charge customers fees if they made more than six monthly withdrawals. ... . Withdrawals might require a few extra hoops. ... . Rates fluctuate. ... . Not a good fit for long-term savings.. What type of account is not covered by the FDIC?Investment products that are not deposits, such as mutual funds, annuities, life insurance policies and stocks and bonds, are not covered by FDIC deposit insurance.
|