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Credit Card Companies That Offer High-Yield Savings Accounts

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When you opt for a high-yield savings account, you want to earn the most money possible with the least fees. Of all the major credit card companies, American Express and Discover are the only two that offer high-yield savings account options.

To avoid confusion, the savings account offerings aren’t credit card savings accounts or savings accounts with credit cards. Instead, credit card companies offer these standalone high-yield savings accounts.

You’ll find that the savings accounts offered by American Express and Discover offer competitive rates when compared with the rates that online banks are offering for the same type of accounts, such as Ally Bank’s 1.45% APY for its high-yield savings and GS Bank’s 1.30% APY. Learn more about these accounts that American Express and Discover offer so you can choose the right high-yield savings account for your needs.

Why Credit Card Companies Offer High-Yield Savings Accounts

Credit card companies offer high-yield online savings accounts to be competitive and gain a larger customer base. Although the interest rate offered by credit card companies is competitive with online banks, it’s typically greater than any rate brick-and-mortar banks can offer, and account maintenance fees are nonexistent. Both Chase Bank and Wells Fargo, for example, offer a 0.01% APY rate on their standard savings accounts.

Brick-and-mortar banks cannot offer such competitive rates and terms due to higher overhead costs than online banks resulting from branch locations and the costs associated with them.

The downside with a credit card company savings account, or any online savings account, is that there is little personal assistance from a teller or bank official, and some traditional banking services –such as a public notary or a lockbox — aren’t provided. Learn the pros and cons of online savings accounts offered by American Express and Discover.

American Express High-Yield Savings Account

APY: 1.25%
Min. opening deposit: $0
Min. balance required: $0
Monthly fee: None

The American Express high-yield savings account works well for people who don’t need to make convenient withdrawals because the account doesn’t provide checks, ATM cards or debit cards. Plus, certain types of withdrawals and transfers are limited to six per month to comply with federal regulations.

A benefit of this account is that the high-interest return and no monthly fees guarantee that you’ll have some extra cash if you leave your funds in play, which should be easy if you don’t have checks and ATM cards to tempt you.

Applicants who are least 18 years old can apply, and you don’t need to have an American Express credit card to open a savings account. The online application asks for your name, street address, date of birth and your Social Security number. In some cases, a copy of identification, such as a driver’s license, will also be requested to verify your identity.

See: American Express High-Yield Savings Account Review — No Fees and No Minimums

Discover High-Yield Savings Account

APY: 1.20%
Min. opening deposit: $0
Min. balance required: $0
Monthly fee: None

With an APY that’s only a bit lower than what American Express offers, Discover is still in the running for the best savings account due to its U.S.-based customer service. The account offers no minimum balance requirements and no monthly fees, which means you can start racking up interest on the smallest of deposit amounts, and you won’t have to worry about earnings being wiped out by fees.

Discover’s online application can be completed quickly and easily online or by speaking with a U.S.-based banking specialist by phone as long as you at least 18 years old. You’ll supply your name, date of birth, address, phone number, email address and Social Security number and possibly other documentation to prove your identity. Other steps include choosing whether you want an individual account or a joint account and selecting a beneficiary.

Find Out: Online Banks vs. Traditional Banks — Where to Get the Best Interest Rates

Making Savings Account Withdrawals, Transfers and Deposits

When you have a high-yield online savings account, certain withdrawals or transfers are restricted by the Federal Reserve Bank to a maximum of six per monthly cycle. Withdrawals and transfers that are restricted to six include:

Unlimited withdrawals can be made:

Unlimited transfers can be made:

Deposits can be made:

Netspend

Another option for a high-yield online savings account is by getting a Netspend prepaid debit card licensed by Visa or Mastercard and opening a Netspend Savings Account. Netspend allows you to transfer money from your Netspend debit card to your Netspend Savings Account and earn up to 5% APY, depending on the average daily balance amount. No minimum deposit is required to set up the savings account, but fees to withdraw funds from the savings account to the card affect the interest.

Making a Decision

Credit card or debit card companies might seem unlikely places to look for the best high-yield savings accounts, but the combination of relatively high rates and no-to-low fees definitely makes them an option to check out.

Up Next: How to Find the Best High-Yield Savings Accounts

All rates are accurate as of Oct. 20, 2017, except for Ally bank, which is accurate as of today. 

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 reviewed, approved or otherwise endorsed by American Express.