American Express is best known for its credit cards, but it also offers online banking options, including a high-yield online savings account.
An American Express savings account comes with an interest rate that far exceeds the average savings account interest rates in the U.S. The bank doesn’t require a minimum account balance or charge any fees for opening or keeping an account with it.
As with most online bank accounts, choosing an Amex savings account over one at a brick-and-mortar bank means you lose access to in-person banking. Because American Express does not offer a checking account, you’ll need to also bank at another institution where you can transfer money into and out of your Amex account.
American Express earned a 4.0 out of 5 stars in Bankrate’s overall review of the bank.
Amex savings account rates
Let’s take a closer look at the savings accounts offered by Amex in the chart below.
|Account name||APY||Minimum deposit|
|High Yield Savings Account||0.50%||No minimum deposit|
Note: The APY (Annual Percentage Yield) shown is as of Dec. 17, 2020. The APY may vary by region.
How Amex savings accounts compare to top-yielding banks
You’ll earn a modest rate with an American Express high-yield savings account, although a few banks offer even higher yields.
For instance, Citibank is currently offering one of the highest interest rates though it’s only available in certain states and markets. There’s no minimum deposit required to open a high-yield savings account with Citi, however, there are some monthly service fees associated with the account.
Not too far behind is Vio Bank, which requires a deposit of at least $100 to open an account, but it does not charge any monthly service fees.
Amex, Citibank and Vio all allow you to open your savings account completely online without having to talk to a representative. Because your account at these institutions is completely online, you’ll need to manage your account either through your bank’s website or its mobile banking app. The American Express mobile app, however, only allows you to manage your American Express credit cards — not your online savings account.
Before choosing a new bank to keep your savings, you should compare options and find the best rate with Bankrate’s list of the top online savings accounts.
Other savings options at Amex
Amex also offers certificates of deposit to help keep and diversify your savings. The bank doesn’t require any set minimums to open a CD and offers other savings terms — from six months up to five years — allowing you to choose a date that best matches when you will need the money again.
The rates for an American Express CD are competitive with other banks, although you’ll find several other options that offer higher yields — especially for short-term CDs. An Amex high-yield savings account pays a higher interest rate than even the five-year CD.
Featured image by PH888 of Shutterstock.