Credit Card Companies That Offer High-Yield Savings Accounts

See how credit card company high-yield savings accounts compare.

When you opt for a high-yield savings account, you aim to earn the most money possible with the least amount of fees. Of the major credit card companies, American Express, Discover and Capital One are the only three that offer high-yield savings account options.

These offerings are standalone, high-yield savings accounts rather than the traditional savings accounts offered by most financial companies.

Savings accounts offered by American Express, Discover and Capital One offer competitive rates when compared with similar accounts offered by online banks such as Ally Bank, which is at 0.80%, and Synchrony Bank, which is at 2.20%.

Learn more about these credit card company accounts 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 for a simple reason: to win more customers. Interest rates offered by credit card companies are competitive with online savings accounts and are typically greater than the rates offered by traditional brick-and-mortar banks. Chase Bank, for example, offers a 0.01% annual percentage yield rate on standard savings accounts. Another advantage of the high-yield accounts offered by credit card companies is that you don’t have to pay maintenance fees.

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Brick-and-mortar banks can’t offer competitive rates and terms for their savings accounts because they have higher overhead expenses than online banks, mostly tied to costs associated with opening and maintaining branch locations.

The downside with a credit card company savings account — or any online savings account, for that matter — is that they don’t offer the same level of in-person customer service as traditional banks. Also, certain traditional banking services — such as public notaries and lockboxes — aren’t available at online banks. It’s important that you learn the pros and cons of online savings accounts offered by American Express, Capital One and Discover.

Compare: Best Money Market Accounts of 2020

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High-Yield Savings Accounts Offered by Credit Card Companies

Here’s a closer look at the high-yield savings accounts offered by the three credit card providers:

High-Yield Online Savings Accounts From Credit Card Companies
Card Issuer APY Features
American Express 0.60%
  • No monthly fees
  • Six monthly transactions allowed
  • No minimum balance required
Capital One 0.65%
  • No monthly fees
  • Six monthly transactions allowed
  • No minimum balance required
Discover 0.70%
  • No monthly fees
  • Six monthly transactions allowed
  • No minimum balance required

American Express High-Yield Savings Account

APY: 0.60%

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Minimum opening deposit: $0

Minimum 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. Also, certain types of withdrawals and transfers are limited to six per month to comply with federal regulations.

The high-interest returns and no monthly fees you get with this account help ensure that you have extra cash if you leave your funds alone. That should be easy since you don’t have checks or ATM cards to tempt you to make withdrawals.

How To Open an Account

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

Capital One 360 High-Yield Savings Account

APY: 0.65%

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Minimum opening deposit: $0

Minimum balance required: $0

Monthly fee: None

Capital One offers a competitive interest rate, no monthly fee and no account minimum. One advantage Capital One has over the other two credit card companies is that it offers more than just online services. You can also bank at a Capital One branch or Cafe location nationwide, where you can order cashier’s checks, open accounts, make deposits and withdraw funds.

How To Open an Account

There are a couple of ways to open a Capital One 360 high-yield savings account. You can apply online through the mobile app or at one of Capital One’s physical locations. You’ll need to provide your name, date of birth, employment information and income, Social Security number and proof of citizenship.

Here’s More: Capital One Bank Review: Full-Service Menu and No Fees

Discover High-Yield Savings Account

APY: 0.70%

Minimum opening deposit: $0

Minimum balance required: $0

Monthly fee: None

The Discover account has no minimum balance requirement and no monthly fee, so you can start racking up higher rates on even the smallest deposit amounts without worrying about your earnings being wiped out by fees.

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How To Open an Account

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

Find Out: Discover Bank Review: Fee-Free Features Worth Checking Out

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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 per month include:

  • Automatic or pre-authorized withdrawals or transfers
  • Phone or fax transfers
  • Transfers or withdrawals made to a third party by check or debit card

Not all withdrawals have these limitations. Here are the unlimited withdrawal types that can be made:

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  • In person
  • By messenger
  • By letter
  • At an ATM
  • By phone, fax or computer if it’s a check made payable to the member and is mailed to the member

Unlimited transfers can be made in the following cases:

  • Between accounts of the same member in person, by messenger, by mail or at an ATM
  • By a member paying a loan that’s held by the same financial institution

Deposits can be made:

  • Via wire transfer or money order
  • After setting up direct deposit
  • By transferring between accounts
  • By mailing a check to the financial institution
  • By using the bank’s mobile app to photograph a check for deposit

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Alternatives to High-Yield Savings Accounts

If you’re looking for alternatives to traditional savings accounts, check out these options:

Netspend Prepaid Debit Card

Netspend prepaid debit cards are licensed by both Visa and Mastercard and can be used to open a Netspend Savings Account. Netspend lets you 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 there are fees to withdraw funds from the savings account and onto the card.

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Betterment Cash Management Account

Cash management accounts are another alternative to high-yield savings accounts. The Betterment Everyday Cash Reserve account comes with an APY of 1.83%. Like the high-yield savings accounts mentioned earlier, the Betterment account has no minimum balance requirement and no monthly fee. Currently, you can make unlimited deposits and withdrawals in the form of transfers. Plans are underway to let you make debit card withdrawals, too. The company will soon offer checking accounts and debit cards, with the latter offering reimbursed ATM fees worldwide.

Check This Out: Capital One Walmart Card Review: Is the Rewards Credit Card a Good Deal?

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Making a Decision

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

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More From GOBankingRates

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Feb. 7, 2020. 

Rates for Betterment and Netspend are subject to change. Information on accounts is accurate as of Feb. 7, 2020. 

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.

Editorial Note: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.

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About the Author

Cynthia Bowman

Cynthia Paez Bowman is a personal finance writer with degrees from American University in international business and journalism. Besides writing about personal finance, she writes about real estate, interior design and architecture. Her work has been featured in MSN, Brex, Freshome, MyMove, Emirates’ Open Skies magazine and more.

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