American Express does not offer traditional savings accounts
American Express is primarily a credit card and payment company, not a bank that takes deposits. They do not offer savings accounts, checking accounts, or money market accounts where you deposit your own money and earn interest. If you are looking for a place to store cash and earn returns, you will need to look elsewhere.
American Express does partner with other financial institutions to offer some deposit products, but these are limited and not widely available. The company has offered high-yield savings accounts through partnerships in the past, but these programs have been discontinued or are no longer marketed to most customers. Your best approach is to check directly with American Express about current offerings, or explore banks and credit unions that specialize in deposit accounts.
Key Takeaways
- American Express does not operate a traditional savings account product for the general public.
- American Express is a credit card issuer and payment processor, not a depository bank.
- If you hold an American Express card, your rewards or cash back cannot be automatically deposited into a savings account through Amex.
- You can transfer cash back or rewards redemptions to an external bank account you own at another financial institution.
- For high-yield savings, you will need to open an account directly with a bank, credit union, or online savings platform.
What American Express actually offers instead
American Express makes money by issuing credit cards and processing transactions, not by holding customer deposits. Their business model centers on the fees merchants pay when you use an Amex card, annual card fees, and interest on credit card balances. They do not need deposits the way a traditional bank does.
If you use an American Express credit card, you can earn cash back or points on purchases. These rewards sit in your Amex account until you redeem them. You can redeem for statement credits, gift cards, travel bookings, or transfers to partner programs—but Amex does not hold the money in a savings account earning interest. Once you redeem, the funds typically move to an external account you control at another bank.
How to move cash back or rewards to a bank account
If you earn cash back through an American Express card, you can transfer it to a checking or savings account at your own bank. Log into your Amex account online or through the mobile app, find the rewards or cash back section, and select the option to redeem or transfer. You will need to provide your bank's routing number and your account number.
The transfer usually takes one to three business days. Some Amex cards allow you to post cash back as a statement credit instantly, which reduces your card balance immediately. Others let you request a check or transfer to a linked external account. The exact options depend on which Amex card you hold.
Where to open a real savings account
If you want to deposit money and earn interest, you have several options outside of American Express. Online banks like Marcus, Ally, and Discover offer high-yield savings accounts with no monthly fees and no minimum balance requirements. Credit unions often offer savings accounts with competitive rates to their members. Traditional banks like Chase, Bank of America, and Wells Fargo offer savings accounts, though their interest rates are typically lower than online alternatives.
When comparing savings accounts, look at the annual percentage yield (APY), any monthly fees, minimum balance requirements, and how easy it is to transfer money in and out. Online banks usually offer the highest rates because they have lower overhead costs. You can open most savings accounts online in minutes by providing your Social Security number, address, and initial deposit information.
Why American Express does not compete in savings
American Express has chosen to focus on credit cards and payment services rather than compete with banks for deposits. Offering savings accounts would require them to become a full-service bank, which means regulatory oversight, deposit insurance obligations, and the need to invest customer deposits in loans and securities. That is a different business entirely from what Amex does well.
Additionally, American Express customers tend to be higher-income earners who already have banking relationships elsewhere. Amex's strategy is to be the card you use for spending and rewards, not the bank where you store your money. This focus has worked well for them—they remain one of the largest credit card issuers in the United States.
What to do if you want both rewards and savings
You can use an American Express card for everyday spending to earn cash back or points, then transfer those rewards to a high-yield savings account at another bank. This approach gives you the best of both worlds: rewards on your purchases and interest on your savings. Many people do exactly this—they earn cash back on an Amex card and deposit it into a Marcus or Ally savings account where it earns 4% to 5% APY (rates vary and change over time).
Another option is to use an Amex card for rewards and keep a separate savings account at a bank or credit union for your emergency fund or long-term savings. There is no rule that says all your financial accounts have to be in one place. In fact, spreading accounts across institutions can sometimes offer better rates and features than consolidating everything.
Frequently Asked Questions
Can I earn interest on my American Express rewards?
No. Rewards sit in your Amex account until you redeem them, and they do not earn interest. Once you redeem cash back and transfer it to your bank account, your bank may pay interest on that deposit, depending on the account type.
Does American Express offer any deposit products at all?
American Express has offered limited deposit products through partnerships in the past, but these are not widely available to most cardholders. Check your Amex account or contact customer service to see if any deposit products are available to you personally, though most customers will find nothing.
What happens to my cash back if I do not redeem it?
Cash back stays in your Amex account indefinitely—it does not expire. You can redeem it whenever you want as a statement credit, transfer to a bank account, or other redemption option. However, it earns no interest while sitting in your Amex account.
Can I set up automatic transfers of my rewards to a savings account?
American Express does not offer automatic recurring transfers of rewards to external accounts. You must manually redeem and transfer each time. Some cards allow you to set a default redemption option (like automatic statement credits), but not transfers to an external bank.
Is my cash back protected if American Express has problems?
Cash back and rewards in your Amex account are not covered by FDIC insurance because Amex is not a bank. However, your rewards are a liability on Amex's balance sheet, and the company is financially stable. Once you transfer cash back to your own bank account, that money is covered by FDIC insurance up to $250,000 per account type.