American Express National Bank: Top-Ranked Savings Account With High APY
Certificates of Deposit
- Savings account APY well above the national average
- 24/7 account access and customer service
- No monthly service fees
- Top-rated customer service according to J.D. Power survey
- No physical branches
- Limited account options
American Express National Bank Overview
American Express National Bank, Member FDIC is a part of New York-based American Express Co., which has been in business for more than 170 years. Although well-known for its line of credit cards, American Express National Bank also offers deposit accounts, including certificates of deposit. The bank has more than $190 billion in assets and ranks No. 85 on the Fortune 500. GOBankingRates has ranked it as a finalist on its list of Best Online Banks of 2023, as well as among the Best Online and Neobank Savings Accounts and Best CD Accounts of 2023.
Here are some of the key features of American Express National Bank, including its account options and interest rates.
American Express National Bank offers one checking account for customers, and it comes with no minimum deposit or balance requirements. This interest-bearing account has a competitive 1.00% APY — very high for a checking account. Customers also earn rewards points on eligible purchases they make with their debit cards. These points can be redeemed for a deposit in the account or used like rewards points earned on credit cards.
There is also a single savings account offered that comes with an APY several times the national average. The High Yield Savings Account offers an annual percentage yield of , with interest compounded daily. The minimum deposit to open an account is $0 and there’s a $0 monthly service fee.
Certificates of Deposit
American Express National Bank offers CDs with tiered interest rates based on terms, which go from 12 months to five years. There are no monthly service fees associated with the CD accounts. GOBankingRates included American Express in its annual list of the Best CD Accounts of 2023. The interest on the bank’s CDs range from APY for a 12-month term to APY for a five-year term.
One downside of AmEx National Bank is there are no physical branches, but customers can manage their money through the bank’s award-winning mobile app. The app has a rating of 4.2 in Google Play and 4.9 in the App Store, with users noting the iOS version of the app operates more smoothly than the Android version. Within the app and on the website, customers can monitor their balances, transfer funds between accounts and redeem rewards points. Customers also have fee-free access to 37,000 ATMs on the MoneyPass network.
American Express National Bank vs. Competitors
Here’s how American Express National Bank compares to similar online banks.
Like American Express, Discover is better known for its credit cards and also offers a checking account, savings account and certificates of deposit. The APY for a savings account at each bank is the same. Discover gives customers 1% cash back on qualifying purchases, comparable to the 1.00% APY that comes with an American Express National Bank personal checking account. Discover’s CD options do edge out American Express, thanks to an APY of 4.40% available with a five-year CD.
American Express National Bank and Ally offer similar rates for their online savings accounts and certificates of deposit. However, Ally offers a greater range of CDs, with three-month, six-month and nine-month options. AmEx National Bank’s shortest CD term is 12 months. Ally Bank is a better choice for customers who want a wider range of products and services, but current American Express credit card holders may appreciate the convenience of managing all their American Express accounts in one spot.
If you’re looking for a place to grow your savings with a high APY, American Express National Bank fits the bill. Your money will earn a higher-than-average interest rate and you’ll have the added advantage of no monthly service fees. The bank is best for American Express credit card holders who want a strong savings tool and the convenience of managing all their accounts in the mobile app.
American Express National Bank FAQHere are answers to some of the more commonly asked questions about American Express National Bank:
- Is American Express a good bank?
- American Express has been in business since 1850, and it made the No. 13 spot on Fortune's list of World's Most Admired Companies for 2022. The bank also has an A+ rating from the Better Business Bureau.
- Is American Express trustworthy?
- Customers have placed their trust in American Express for more than 170 years. The company has a documented history of providing exceptional customer service. American Express National Bank also is a member of the FDIC, which insures deposits up to $250,000.
- Is American Express a real bank?
- Yes, American Express National Bank is a real bank headquartered in Utah. The bank's routing number is 124085066.
- Is American Express better than Citi?
- That depends on what you want from a bank. Both American Express and Citi offer credit cards and deposit accounts. Neither bank has a minimum opening deposit requirement, but you will need to maintain a minimum balance to avoid a monthly service fee at Citi. Citi also requires banking customers to choose a banking package when opening an account. If the packages suit your financial needs and goals, you may prefer the greater presence Citi has in the U.S., including access to more than 65,000 surcharge-free ATMs. If you're already an American Express card holder, banking with American Express National Bank may be the better choice.
To determine rankings for the Best Online Banks, GOBankingRates looked at the following factors across exclusively online banks: (1) total assets as sourced from the FDIC; (2) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (3) savings APY; (4) 1-year CD APY; (5) customer service options and mobile products offered (24/7 customer service, live chat with a human, mobile app and remote check deposit); (6) Bauer rating (out of 5 stars); (7) products/services offered (auto loans, mortgage loans, credit cards, investment services and insurance); and (8) the average mobile app rating between the Android and Apple app stores. Factors (1) and (2) were weighted 0.5 times, and factors (3) and (7) were weighted 2 times. For all savings and checking account data, only the basic accounts/products offered at each institution were analyzed.
To determine rankings for the Best Online Bank and Neobank Savings Accounts, GOBankingRates looked at the following factors from all online banks and neobanks: (1) total assets as sourced from the FDIC; (2) minimum deposit to open an account; (3) monthly savings fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (4) minimum balance needed in account to earn APY; (5) savings APY; and (6) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factor (1) was weighted 0.5 times, factor (4) was weighed 1.5 times and factor (5) was weighted 3 times.
To determine rankings for the Best CD Accounts, GOBankingRates looked at the following factors from all banks (excluding credit unions): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) 12-month CD APY; (5) 60-month CD APY; and (6) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factors (1) and (2) were weighted 0.5 times, factor (3) was weighted 2 times, and factors (4) and (5) were weighted 4 times.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 22, 2022.
All information about American Express offers have been collected independently by GOBankingRates and have not been reviewed or approved by American Express. These offers are not available through GOBankingRates.
Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by American Express. American Express credit card products are not available through GOBankingRates.com.
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