American Express® National Bank: Savings, Money Markets and CD
American Express® is perhaps best known for being a credit card issuer. But American Express National Bank also offers products and services for savers, including high-yield savings accounts and certificates of deposit.
When looking for a new savings account, CD or money market account, it's important to shop around to find the right bank for you. Here's a closer look at what American Express has to offer to help decide if it's the best place for your savings.
What is American Express National Bank?
American Express National Bank was founded in 1989 and is owned by parent company American Express. The bank's headquarters are located in Salt Lake City, Utah.
As an online-only bank, there are no branch locations. However, more than 1.5 million ATM locations worldwide are accessible to customers with American Express credit cards or prepaid debit cards.
American Express National Bank offers online savings accounts and certificates of deposit. Savers enjoy competitive interest rates, compared to other banks or credit unions, while paying minimal banking fees. It frequently is listed among the top banks in the America's Best Rates Survey, which tracks rates to determine which banks consistently offer the highest rates.
|American Express National Bank||Popular Accounts||Account Features & Fees||Pros & Cons||Locations|
Popular American Express National Bank Accounts
If you're interested in an American Express high-yield savings account or certificate of deposit account, here's a brief overview of their main features.
|Account||Min. to Earn APY||Min. Opening Deposit||Notes|
|American Express High Yield Savings||$1||$0||No minimum balances and no minimum deposit required|
|1-yr CD||$1||$0||Interest rate and APY are fixed|
|5-yr CD||$1||$0||An early withdrawal penalty may apply if you withdraw money before your CD matures|
How American Express National Bank Works
When considering a new bank to open an online savings account or any other type of account, it's helpful to know a little more about how it works. Specifically, that means looking at the costs, benefits and features. Here's what you can expect when saving with American Express.
Bank fees can detract from the interest you earn on a savings account or certificate of deposit. Some banks or credit unions can charge monthly maintenance fees, though you're less likely to pay them at online banks.
American Express online savings accounts don't have any monthly maintenance fees. There are no hidden fees to worry about either. That's a good thing if you want to minimize what you pay to save each month.
When opening a savings account, you'll want to check minimum balances and what's required to get started. For example, some banks may expect you to have $100, $500 or $1,000 to open a savings account.
That could make it more difficult to open a savings account if you're just getting started.
But American Express National Bank keeps things simple with zero minimum balance or minimum deposit requirements. You do, however, need to have at least $1 in your American Express High Yield Savings Account or CD account to earn interest.
Can you open multiple accounts?
Yes, you can have more than one savings account with American Express National Bank. You can also open multiple certificates of deposit if you want to create a CD ladder. This strategy can help with managing a changing interest-rate environment.
Opening more than one savings account or CD account might be attractive if you have multiple short-term or long-term financial goals in mind. Since there are no minimum balances or maintenance fees, you could spread your savings for individual goals across different accounts.
Account access and customer support
It's also important to think about how you'll be able to deposit or withdraw money with a savings account. When you open an American Express High Yield Savings Account, you have convenient 24/7 access to your money online.
In addition to managing your American Express savings account online, you can get help from customer support. Customer service is available 24 hours a day, 7 days a week by calling 1-800-446-6307.
You can also fax American Express or send mail to their Salt Lake City headquarters.
Mobile and online banking experience
American Express's online banking system is easy to use and navigate. You can use online banking to:
- Check your balance
- Transfer money to an externally linked bank account
- View your most recent savings account statement
- Schedule bill payments to your American Express credit card
And while mobile apps can make managing your online savings account easier, American Express doesn't offer savings account access through its mobile app at this time. That may be a disadvantage if you prefer to use mobile check deposit to deposit checks.
American Express High Yield Savings Account
The American Express High Yield Savings Account may be an attractive option for earning competitive interest rates with no minimum balances required and no monthly fees.
As proof of how attractive American Express savings rates are, the bank ranked in the top 10 in the America's Best Rates Survey for best savings account rates.
|American Express National Bank High Yield Savings Account Fees||Amount||Notes|
|Monthly Maintenance Fee||$0||No minimum balance fees or hidden fees apply|
|Excess Withdrawal Fee||Not disclosed||Make up to nine withdrawals per month without incurring a fee|
American Express National Bank Money Market Account
Money market accounts can be an attractive way to save if you want to earn interest while enjoying some of the features of a checking account. For example, you may be able to earn interest while also having check-writing abilities or a debit card for making purchases and ATM withdrawals. Unfortunately, American Express does not offer money market accounts at this time.
American Express National Bank CD Rates
Certificates of deposit (CDs) let you earn a guaranteed interest rate over a set period of time. American Express offers CDs with terms ranging from six to 60 months. There's no minimum deposit required to open a CD account, and interest rates are tiered based on the length of the CD term.
Compared to other banks or credit unions, American Express CD rates are competitive (although they didn't manage to crack the top 10 for CDs in the latest America's Best Rates Survey).
|American Express National Bank 1-Year CD||Amount / APY||Notes|
|1-Year CD APY - 12 months||0.20%|
|Early Withdrawal Penalty||270 days' interest on the withdrawn amount||CD terms renew automatically unless you specify otherwise|
|American Express National Bank 5-Year CD||Amount / APY||Notes|
|5-Year CD APY - 60 months||0.55%|
|Early Withdrawal Penalty||540 days' interest on the withdrawn amount||CD terms renew automatically unless you specify otherwise|
American Express National Bank Checking Accounts
Opening a checking account in the same place where you keep your savings could be convenient if you want to manage your money all in one place. You could easily transfer money between accounts or use savings as overdraft protection. At this time, an American Express checking account isn't an option, however, as the bank focuses solely on offering savings and CD accounts.
American Express National Bank Personal Loans
Personal loans can be useful when you need cash and would rather not use a credit card to cover expenses. American Express offers personal loans if you need to borrow money to consolidate debt, pay for home repairs or cover another expense. You do have to be an eligible American Express cardmember to qualify.
Loan amounts range from $3,500 to $25,000. Interest rates are fixed and there are no origination fees or prepayment penalties. Your APR and repayment term are based on your credit score and loan amount.
American Express National Bank Pros & Cons
When choosing where to keep your savings, it's natural to focus on a bank or credit union's strongest selling points. But it's also important to balance that against any potential downsides.
If you're considering opening an American Express High Yield Savings Account or CD account, here are some of the most important pros and cons to keep in mind:
|American Express National Bank|
|Earn a competitive APY on a personal savings account||Since this is an online savings account, you don't have branch-banking access|
|Pay no monthly maintenance fees for a savings account or CD account||No mobile app access might be off-putting if you prefer to manage your money on the go|
|Open an American Express savings account or CD account with no minimum balances required||You may be able to earn higher interest rates on savings accounts or CDs at a different online bank|
|Get 24/7 access to your account online|
|Easily open an account online in minutes|
|Open multiple accounts to fund different savings goals|
Locations - Branches & ATMs
American Express National Bank has just one branch location in Salt Lake City, Utah.
Savings account and CD account customers don't have access to ATMs, as neither account comes with an ATM card. But if you have an American Express credit card or a prepaid debit card, you can manage your money at more than 1.5 million ATMs around the world.