When it comes to finding the best savings account, a good place to start is with reputable, established companies like American Express. Although well-known for its line of credit cards, American Express Bank also offers a variety of financial services for individuals and businesses, including a high-yield savings account.
With no monthly fees and no minimums, the American Express Personal Savings Account can help you grow your money.
|American Express Personal Savings Account at a Glance|
|Pros||Easy sign-up, high APY, no fees, links with outside bank accounts, FDIC insurance, no minimum balance requirement, 24/7 customer service|
|Cons||No physical branches, no mobile app access, no ATM card, no checks|
|Information accurate as of Aug. 27, 2018, except the APY rate, which is accurate as of today.|
What You Need to Know About the American Express Personal Savings Account
Because the point of a savings account is to help you make money, it’s important you get the best interest rate. The national average savings account interest rate in the U.S. sits at a paltry 0.08% APY, according to the FDIC as of August 2018. This is problematic when the average inflation rate was 2.10 percent for the first half of 2018, according to the Bureau of Labor Statistics. Without earning a higher rate, your savings can fall behind the growth in consumer prices. The American Express Personal Savings Account APY is leagues above the national average, meaning your money will grow with time.
The American Express savings account has no fees, plus 24/7 customer service and other convenient features. One of the ways American Express can offer such a low-cost account is that the high-yield savings offering is online only, meaning there are no brick-and-mortar offices to drive up expenses passed down to customers. All in all, the American Express high-yield savings account is a convenient option for banking customers looking to store their cash for the long haul without the restrictions of a bank certificate of deposit, for instance.
Check Out: American Express Bank Review
Advantages of Having an American Express Personal Savings Account
American Express Personal Savings is fee-free, has no minimum balance requirements and offers online sign-up. As an online bank, American Express also offers round-the-clock account access. The American Express Personal Savings account is a safe choice for online banking customers because accounts are insured by the FDIC, up to $250,000 per depositor.
The online savings account also offers a competitive 2.00% APY. This rate is more than 20 times higher than the national average savings account interest rate.
Disadvantages of Having an American Express Personal Savings Account
If you’re looking for a face-to-face meeting with your American Express high-yield savings account banker, you might be out of luck. Although you can access your account online at any time, you can’t just stroll into a branch. This lack of service might be an issue if you’re in a location with no phone or internet access.
Also, your account doesn’t come with a debit card or checks, so accessing your emergency funds in a pinch can be a hurdle. Because this issue might make it more difficult for you to reach your funds, this savings account option is best for customers who have emergency funds stored elsewhere. Another option is linking your American Express account to another bank account which you can more easily access by debit card or other means.
Consider these downsides of the American Express Personal Savings account before signing up:
- No physical branches
- No mobile app access
- No ATM card
How the American Express Savings Account Compares With Others
Online savings account rates are far above rates offered by brick-and-mortar banks. Online banks have lower overhead costs, allowing them to offer more competitive rates. Here’s how the American Express Personal Savings Account’s 2.00% APY compares to other savings accounts:
|Savings Account Rates From Top Online Banks|
|Savings Account||Rate (APY)|
|CIT Bank High Yield Savings||2.15%|
|Barclays Online Savings||1.85%|
|Synchrony Bank High Yield Savings||2.05%|
|Ally Bank Online Savings||2.00%|
|Capital One 360 Savings||1.00%|
|Rates accurate as of today.|
How to Open Your American Express Personal Savings Account
You can sign up for this savings account in a few simple steps:
- Navigate to the American Express Personal Savings Account product offer page.
- Select “Apply for a Savings Account.”
- Select “Open a New Account” and provide basic information, such as your email, Social Security number and date of birth.
As you consider savings accounts at online banks, think of which features you’ll use most. If mobile access is not as important to you as the brand recognition behind American Express, this could be a good option for you.
The Bottom Line
Customers looking to boost their savings and accumulate wealth will find a good option in the American Express Personal Savings account. With no fees and no minimum balance, the account is also a good starting account for those with less to invest. Its APY is far higher than the national average and is competitive compared with other account options. The lack of card and physical branch locations will pose problems and risk for those who enjoy more expansive access to their funds, but for those looking to only bank online or not deal with cash, it’s a non-issue. If you’re looking for a long-term investment, American Express also offers customers CD accounts.
Sean Dennison contributed to the reporting for this article.
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All rates are accurate as of today. All fees and rates are subject to change at the financial institutions’ discretion.
GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions and other financial services organizations. Some companies mentioned in this article might be clients of ConsumerTrack, Inc., which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by the companies included in the article. All fees and rates are subject to change at the issuers’ discretion. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met in order to obtain the interest rates listed. Rates and availability might vary by region. Verify terms and conditions before opening an account.
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.