American Express Bank Review: High Interest Rates on Savings

Decide if Amex is the right online bank for you.

You’ve likely heard of the American Express credit card company, but perhaps you didn’t know there is also an online-only American Express National Bank. Founded in 1985, the bank now has $57.8 million in assets, making it a sweet addition to American Express’s consumer credit cards.

If you’re in the market for a solid CD or savings account, American Express National Bank is an option to consider. Its savings account and CDs pay high rates and come with no required minimums or fees. Review the pros and cons of an American Express High Yield Savings account or CD and decide if this is the right online bank for you.

American Express National Bank Review

If you’re nervous about opening an online bank account, don’t be. Your American Express savings account or CD will be FDIC-insured up to $250,000 in assets. Online banking is easy and convenient, and you can link your current bank account to your Amex savings account.

Also See: American Express Platinum Review

American Express National Bank Products and Services

American Express National Bank offers two products that can help you build your savings:

  • American Express Personal Savings, a high-yield savings account
  • Certificates of deposit, various term lengths

American Express Personal Savings

The Amex Personal Savings account pays 1.80% APY. And you don’t have to pay any monthly fees or keep a minimum balance.

High Yield and No Fees: American Express Personal Savings Account Review

American Express CDs

The Amex CD offers fixed interest rates and seven maturity terms from which to choose: six, 12, 18, 24, 36, 48 and 60 months. Interest rates start at 0.40% APY for a six-month CD and climb to 3.00% APY for a 60-month CD. These competitive rates are great, but keep in mind that you must leave your money in the account until the CD matures or you will likely have to pay an early withdrawal penalty fee.

American Express National Bank Pros and Cons

Like most financial institutions, American Express National Bank’s offerings come with advantages and disadvantages. Review this online bank’s features carefully to see if the bank is a good fit for you.

American Express National Bank Pros

Amex savings and CD accounts offer some great features. The benefits of being a customer of American Express National Bank include:

  • No fees: You won’t pay any monthly fees for your savings account.
  • High interest rate: At 1.80% APY, the savings account offers a top interest rate; CD rates start at 0.40% APY and climb to 3.00% APY.
  • FDIC insurance: Your deposits will be guaranteed by the FDIC for up to $250,000.

American Express National Bank Cons

Every bank has its drawbacks. Here are some details of banking with American Express that might be deal breakers for you:

  • No mobile app: Although you can view the web page from your mobile device, there is not an American Express National Bank mobile banking app available yet.
  • Limited account options: You can’t open a checking account here, only a CD or savings account.
  • Very limited number of physical branches: Because this is an online bank, you’re out of luck if you like to bank in-branch unless you live in Salt Lake City, where there are three locations.

Learn More: Pros and Cons of Online Savings Accounts

Is American Express National Bank Right for You?

For people looking for a no-frills savings account with a great interest rate — and no fees — the Amex High Yield Savings might be a good choice. Keep in mind, however, that unlike many online banks, there is currently no mobile app — which means no support for online check deposits to your Amex savings account.

If you’re ready to commit your money for a length of time — from six to 60 months — the Amex CD rates will make it worthwhile. These accounts might be the perfect solution if you’re looking for a free high-yield savings or CD account to stash your extra money at a bank separate from your checking account. Although neither of the accounts comes with many bells and whistles, they provide the most important thing — a safe place to grow your money at a good rate.

Also See: Bluebird by American Express Review — A Different Kind of Prepaid Card

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Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been endorsed by American Express.