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American Express Bank Offers High Yield CD and Savings Accounts
Amex has recently entered the market of online banking with the launch of the American Express Bank, FSB. The 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 limit 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.
The interest rates offered by American Express, while not the highest available, are very competitive. The yield on the savings account is currently 1.85% APY. By comparison, the highest available yield on savings accounts that we track is currently around 2%, with Everbank offering a 3-month bonus rate of 3.01%.
For certificates of deposit, American Express Bank currently offers 0.60% APY for a 3-month term up to 3.25% APR for a 60-month (five year) term. As with the high yield savings account, Amex's rates on CDs is competitive, but not the highest. The best CD rates today come from the likes of Everbank, Discover Bank, and Ally Bank. For example, Amex currently offers an APY of 1.75% on a 12-month CD. By comparison, Discover Bank offers 1.95%, and Everbank offers 1.81% for the same 1-year CD.
There are no minimums required to open a CD or savings account with American Express. The bank is FDIC insured, and it offers no fee transfers to and from the high yield savings account. There are penalties for early withdrawal from a CD. If you'd like more information, you can visit American Express Bank.
American Express is not the first credit card company to enter the world of banking. Discover Card, which made its debut as a new credit card in an ad that aired during the Super Bowl in 1986, also offers savings products through Discover Bank.
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I don’t know when this was written but as of right now the American Express Personal Savings Account rate is the highest among all other banks. The only other bank matching their 1.85% APY is Ally Bank. No one else is even close. Most are around 1.35% or lower.
I moved all my saving to American Express Personal savings a few months ago and it has been a GREAT experience. It was by far the easiest account I have set up as well. The site is simple and easy to navigate.