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

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 high-yield savings account can help you grow your money.

American Express Personal Savings Account at a Glance
APY 1.75%
Annual Fee $0
Account Minimum $0
Pros Easy sign-up, no fees, links with outside bank accounts, FDIC insurance, no minimum balance requirement, 24/7 customer service
Cons Not the highest savings rate, no physical branches, no mobile app access, no ATM card, no checks

See: 10 Best Savings Account Promotions Available Now

American Express High-Yield Personal Savings Review

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 0.06% APY, according to the FDIC as of November 2017. This is problematic when the average inflation rate was 1.92 percent so far in 2017 as of October, 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 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 Amex 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: 5 Best Banks for No Fees

Advantages of Having an American Express 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 account also offers a competitive 1.75% APY. This rate is more than 20 times higher than the national average savings account interest rate.

Disadvantages of Having an Amex 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 somewhere. This lack of service can 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, meaning accessing your emergency funds in a pinch can be a hurdle. Because this issue can make your funds more difficult to reach, this savings account option can be best for customers who have an emergency fund stored elsewhere.

Consider these downsides of the American Express account before signing up:

 American Express Bank Review: High Interest Rates on Savings

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 Amex’s 1.75% APY compares to other savings accounts:

Savings Account Rates From Top Online Banks
Savings Account Rate (APY)
CIT Bank High Yield Savings 1.55%
Barclays Online Savings 1.85%
Synchrony Bank High Yield Savings 1.85%
Ally Bank Online Savings 1.80%
Discover Savings 1.75%
Alliant High-Rate Savings 1.16%
iGObanking High-Interest Savings 1.00%
MySavingsDirect High-Interest Savings 1.00%
Bank5 Connect High-Interest Savings 0.90%
Capital One 360 Savings 1.00%

How to Open Your AmEx Personal Savings

You can sign up for this savings account in a few simple steps:

  1. Navigate to the Amex Personal Savings product offer page.
  2. Select “Apply Now.”
  3. 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 Amex, this savings account could be a good option for you.

Up Next: 10 Most Exclusive Black Cards You Don’t Know About

Ally Bank, American Express Bank, Barclays Bank Delaware, Capital One, CIT Bank and Discover rates are accurate as of today; all other rates accurate as of Nov. 21, 2017. All fees and rates are subject to change at the financial institutions’ discretion.

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.