American Express does offer high-yield savings accounts through American Express Bank
American Express Bank offers a high-yield savings account called the American Express Personal Savings account. It is a deposit account held at American Express Bank, FSB, a federally chartered savings bank. The account earns interest on your balance, and the rate is higher than what most traditional banks offer — though the exact rate changes based on Federal Reserve decisions and market conditions.
You do not need an American Express credit card to open this account. Anyone with a Social Security number and a U.S. address can open one. The account has no monthly maintenance fee, no minimum balance requirement to open it, and no maximum deposit limit.
Deposits in this account are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per bank. This means if American Express Bank fails, your money up to that limit is protected by the federal government.
Key Takeaways
- American Express Bank offers a high-yield savings account with no monthly fees, no minimum opening balance, and no deposit caps.
- The interest rate on the account changes regularly and is set by American Express Bank based on market conditions.
- Your deposits are FDIC-insured up to $250,000, the same protection you get at any other bank.
- You can open the account online without an American Express credit card or existing relationship with the company.
- Money you deposit is held at a bank, not invested, so your principal does not fluctuate with the market.
How the interest rate works and when it changes
American Express Bank sets the interest rate on its savings account and can change it at any time. The rate is not locked in — it moves up and down based on what the Federal Reserve does and what other banks are offering. When the Federal Reserve raises its benchmark rate, banks typically raise savings rates. When the Fed cuts rates, savings rates usually fall.
You can check the current rate on the American Express Bank website. The rate applies to all new deposits and existing balances the same day it takes effect. There is no penalty for the rate going down, and you do not have to do anything to receive the new rate — it applies automatically.
The account also compounds interest daily, which means you earn interest on the interest you have already earned. This happens automatically and is reflected in your balance.
How to move money in and out
You can transfer money into your American Express savings account from another bank account you own using ACH transfer (Automated Clearing House). This is a free electronic transfer that typically takes one to two business days. You can also deposit money by mailing a check, though this is slower and less common.
Withdrawals work the same way — you can transfer money out to another bank account via ACH, usually within one to two business days. American Express Bank does not charge a fee for transfers in or out. There is no limit on how many transfers you can make per month, though some banks impose limits; American Express does not.
You cannot write checks on this account or use a debit card. It is a savings account, not a checking account, so it is designed for money you want to keep separate and earn interest on, not for everyday spending.
Comparing American Express to other high-yield savings options
Many online banks and credit unions also offer high-yield savings accounts. The main differences are the interest rate, the bank's stability, and the customer service available to you. American Express Bank is a large, established bank backed by American Express, so it has significant resources and a long track record.
The interest rate American Express offers may be higher or lower than competitors on any given day — rates change constantly. You can compare current rates on sites that track savings rates across banks, though you will need to check the American Express Bank website directly for the most current figure.
If you already use American Express credit cards or other services, having your savings account at American Express Bank may make it easier to manage your money in one place. If you do not, the main reason to choose American Express over another bank would be the rate it is offering at the time you open the account.
What happens if you need the money before a certain date
There is no penalty for withdrawing money from an American Express savings account at any time. You can take out part or all of your balance whenever you want, and the money reaches your other bank account within one to two business days via ACH transfer. This is different from a certificate of deposit (CD), which charges a penalty if you withdraw early.
Because there is no withdrawal penalty, this account works well if you are saving for something but are not sure exactly when you will need the money. You get a higher interest rate than a checking account, but you keep full access to your cash.
Tax reporting and interest statements
American Express Bank sends you a 1099-INT form each January if you earned $10 or more in interest during the previous year. This form reports the interest you earned to you and to the IRS. You use this form to report the interest income on your tax return.
You can also see how much interest you have earned by logging into your account online. American Express provides a running total of interest paid year-to-date, and you can download statements that show each deposit, withdrawal, and interest payment.
How to open an account
You can open an American Express savings account online at the American Express Bank website. You will need your Social Security number, a valid government-issued ID, your current address, and information about a bank account you own (so you can link it for transfers). The process takes about 10 to 15 minutes.
Once your account is open, you can transfer money in from your other bank account. The first transfer may take a few extra days while American Express verifies the account, but after that, transfers usually complete within one to two business days.
Frequently Asked Questions
Do I need an American Express credit card to open a savings account?
No. You can open an American Express Bank savings account without any American Express credit card or existing relationship with the company. You only need a Social Security number, a valid ID, and a U.S. address.
What is the current interest rate?
The rate changes regularly and varies based on market conditions. Check the American Express Bank website directly for the current rate. You can also compare it to other banks' rates on savings rate tracking websites.
Is my money safe if American Express Bank fails?
Yes. Your deposits are insured by the FDIC up to $250,000. This is the same federal protection you get at any other bank. If the bank fails, the FDIC pays you back up to that limit.
Can I withdraw money whenever I want?
Yes. You can withdraw any amount at any time with no penalty. Money transfers to your other bank account via ACH, usually within one to two business days. There is no limit on how many withdrawals you can make.
How often does the interest rate change?
American Express can change the rate at any time. It typically moves when the Federal Reserve changes its benchmark rate, but the bank can adjust independently. You can check your account online to see the current rate whenever you want.