American Express Bank Review | Savings & CDs
American Express is widely known for its credit card products.
But did you know, American Express also offers a variety of high-yield savings accounts (HYSA) which are available through its online banking division?
This post is going to cover everything you need to know about American Express Personal Savings, including how it works, how much interest you can earn, how you can sign up, and more.
While we’re at it, we will also take a look at the American Express Certificate of Deposits (CDs).
In This Article:
- What is American Express Personal Savings?
- American Express Personal Savings
- American Express CD
- Getting Started
- American Express Security
- Customer Service
- Pros and Cons
- Is Amex Personal Savings for You?
What is American Express Personal Savings?
American Express Personal Savings is an online high yield savings account offered by American Express.
Personal savings accounts are not directly associated with credit card accounts, so if you’re an American Express credit card holder, you’ll have a separate online account for accessing your savings funds.
You can, however, link these accounts together. Once that’s done, you can use your savings funds to pay your credit card bills, and you can also navigate between the accounts without having to log into both.
American Express Personal Savings
Let’s take a look at some of the main features that are included with a personal high yield savings account.
Amex Savings Balance Requirements and Monthly Fees
A major benefit to American Express Personal Savings is that they don’t charge monthly fees for parking your funds there.
There’s also no minimum balance requirement to open an account. So even if you have just 20 bucks to start, you can still open an account.
Pro Tip: I don’t recommend using any HYSA that charges a fee.
American Express Savings Rates
American Express Personal Savings currently offers a 1.60% APY on funds stashed in personal savings accounts. This is among the higher APYs currently available among all HYSAs.
Let’s say you park $10,000 in a personal savings account for an emergency fund and do absolutely nothing to it for six years.
At 1.60% APR, you’ll earn a solid $999 in interest after the six-year mark.
If you’re looking for a safe place to park your emergency savings, an Amex personal savings account might be a good option.
Since American Express Personal Savings is offered through the company’s banking division, American Express National Bank, deposits of up to $250,000 are protected by FDIC insurance.
Pro Tip: I don’t recommend investing emergency or safety funds into non-FDIC insured accounts.
American Express CDs
If you’re looking for an alternative way to earn interest without being exposed to market volatility, American Express also offers certificates of deposit (CDs).
Depending on the term you select when creating your CD, you can earn from 0.40% APY (six-month term) up to 2.00% APY (60-month term).
As with all CDs, the downside is that you can’t access your funds during the CD term without paying a penalty. So, if you might need to withdraw money for an unexpected expense, you might be better off keeping your funds in a HYSA.
If you were to deposit $10,000 in a 60-month American Express CD, you would earn $1,041 after the term is up.
If you stored that same $10,000 in your HYSA, you’d earn $826 during the same period. Crunch the numbers, and you’d end up earning $215 more by opting to go with a CD over an HYSA. Not bad!
Signing Up For An American Express Personal Savings Account
To sign up for an account, go here and click Open a New Account.
Once you have provided all the needed details, you’ll be asked if you want to add a joint account holder (like your spouse) to the account. It appears that this is the only time that you’re able to add a joint account holder, so make sure to get this done now if you’d like another person on the account. (You can, however, add beneficiaries whenever you want.)
Next, you’ll be asked to agree to the terms and conditions.
On the last step, you’ll need to confirm that your Social Security number is accurate for tax purposes. You’ll also have to confirm that you aren’t subject to backup withholding from the IRS.
The entire process took me about five minutes.
Keep in mind that you’re going to need to provide your:
- Social Security Number
- Date of Birth
- Email Address
- Phone Number
- Home Address
- Employer Information
- You’re also going to have to link your external bank in order to deposit funds.
American Express Security
American Express offers a range of security features, which they discuss on a dedicated security section of their website.
Here are some of the security measures that American Express takes to protect your account and data:
- Customers choose their own ID and passwords
- Secure, encrypted website for all customer transactions
- If you leave your online account unattended for a few minutes, it’s automatically signed out
- Password recovery attempts are confirmed via email, so you’re instantly made aware of any attempted changes
- If you’re looking for additional protection, you can create a Personal Security Key that customer support can use to confirm your identity when you contact them
American Express Personal Savings Accounts feature 24/7 customer support access over the phone by calling 1-800-446-6307.
For more details on how to contact customer support, visit their contact us page.
Pros and Cons of American Express Savings
- Industry-leading APY on personal savings accounts and CDs
- No monthly fees or minimum balance requirements
- Customer support available 24/7
- A trusted company that has a reputation for providing high-touch service
- Online-only, so you can’t deposit cash
- No option to withdraw your funds at an ATM
- No mobile app, so you can’t deposit checks
Alternatives to American Express Savings
The most popular high yield savings account alternatives to American Express Personal Savings include:
American Express Personal Savings FAQs
Is American Express Savings Safe?
Yes. American Express Personal Savings is completely safe because it’s backed by American Express National Bank, and your funds are FDIC-insured.
Is There an American Express Savings App?
No. American Express does not offer a mobile app for Personal Savings account holders. In my opinion, this is a huge downside, because it prevents you from accessing your account on-the-go. You also can’t deposit checks from your phone (many other HYSA providers offer mobile apps and mobile check deposit).
How often does Amex savings compound?
Amex personal savings deposits compound interest daily. Your interest earnings are posted to your account each month.
How Do I Make an American Express Savings Deposit?
To deposit funds to your American Express Personal Savings Account, you’ll have to transfer funds from your external bank (for example, from your Chase checking account) into your personal savings account. It appears that an external bank transfer is the only way to deposit money into your American Express Personal Savings account.
So, is American Express Personal Savings the Right Choice for Me?
If you’re already a fan of Amex—let’s say you’re a happy American Express credit card customer—and you’re also in the market for a HYSA that offers a competitive APY, American Express Personal Savings might just be the right choice for you. Your money will grow at a rate of 1.60% APY. You’ll also be investing with a company you’re familiar with and can trust.
On the other hand, if you’re the type of investor that wants to be able to make transactions within a mobile app, or if you might need to deposit cash or checks into your HYSA, you might want to look for another provider.
A HYSA is just one tool in the savvy investor’s financial toolbelt. You’ll also want to have investment accounts and a solid overall strategy. For more information on how to get started investing, check out this post: Investing 101.
Here’s to making smart investments and wise spending decisions each day!