American Express has recently entered the market of online banking with the launch of the American Express Bank, FSB. AMEX Bank is an FDIC insured online bank that offers two savings products, high yield certificates of deposit of varying terms and a high yield savings account.
While AMEX has offered banking products on a limited basis for some time, the high yield savings account is a new offering, and they have expanded the CDs to include terms ranging from 3 months to five years. So now, in addition to offering credit cards, American Express is actively pursuing banking clients.
In order to sign-up for an American Express account, you’ll need the following pieces of information:
- Social Security number
- E-mail address
- Date of birth
- Your existing bank account and routing numbers (if funding electronically)
The interest rates offered by American Express, while not the highest available, are very competitive. The yield on the savings account is currently 1.00% APY (as of October 24th, 2011). By comparison, the highest available yield on savings accounts that we track is currently around 1.35%, with SmartyPig.
American Express CD Rates
There are no minimums required to open a CD or savings account with American Express. The bank is FDIC insured for up to $250,000 per depositor, and it offers no fee transfers to and from the high yield savings account. There are penalties for early withdrawal from a CD so make sure you check the penalty fees before setting up an online CD.
- If you’d like more information, you can visit American Express Bank.