American Express Bank Review: High-yield savings, competitive CDs, and low fees

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When most people think of American Express, they picture credit cards. But American Express also has a banking division — American Express National Bank — which offers a range of banking products.  

American Express National Bank is a solid option for stashing cash, thanks to its high-yield savings account and certificates of deposit (CDs). It even offers a Rewards Checking account, complete with a debit card that earns American Express Membership Rewards points.

In this complete review, we'll take a closer look at what the bank offers and how it stacks up.

American Express National Bank bank accounts 

American Express Bank offers several banking products, including a high-yield savings account, certificates of deposit (CDs), personal checking account, and business checking account. This bank doesn’t currently offer money market accounts or brokerage accounts.

American Express high-yield savings account 

• Minimum opening deposit: $0
• Monthly fees: $0 
• APY: 4.25% 

American Express National Bank's High Yield Savings Account currently offers a 4.25% APY – over nine times the national average. The account has no minimum balance requirements or monthly fees, making it a great option for savers of all stripes.

While this high-yield account doesn't come with ATM access or check-writing privileges, it does offer a simple, rewarding way to grow your money. With FDIC insurance and 24/7 customer support, you can rest easy knowing your funds are safe and accessible. 

American Express Bank CDs 

• Minimum opening deposit: $0
• Term lengths: 11-60 months
• APY: 3.00%-4.50% 
• Early withdrawal penalty: Varies

For savers looking to lock in a guaranteed return, American Express also offers CDs, with terms ranging from 11 months to five years. Currently, the 11-month CD boasts an impressive 4.50% APY, while its 5-year CD pays a still-competitive 3.00%.

One standout feature of Amex's CDs is the lack of a minimum deposit requirement. This makes them accessible to savers at all levels, not just those with large sums to invest. 

But if you’re looking for the highest possible rate on a CD, you may want to look at other online banks. For example, First Internet Bank offers CDs with yields up to 5.31%, though there is a $1,000 minimum initial deposit.

Another digital bank — Capital One 360 — has no minimum initial deposit (like American Express) but provides shorter-term options if you want more liquidity. 

Rates are accurate as of May 10, 2024. 

It’s important to note that American Express CDs have early withdrawal penalties that are on the steep side. The penalty amount depends on the term length:

• Less than 12 months: 90 days’ interest
• 1-3 years: 270 days’ interest
• 4 years: 365 days’ interest
• 5 years: 540 days’ interest

American Express checking account 

• Minimum opening deposit: $0 
• Monthly fees: $0  
• APY: 1% 
• Rewards: 1X point for every $2 spent with your debit card 

The American Express Rewards Checking account is a standout among interest-bearing checking options. This account offers the ability to earn interest on your checking balance and points on your debit card purchases.  

You’ll earn 1.00% APY on all balances and one Membership Rewards point for every $2 spent on the debit card. Unlike other interest checking accounts, you don't have to jump through any hoops to earn that rate. You can use Membership Rewards points to buy gift cards, book travel through American Express, and more.  

There are no monthly fees or minimum balance requirements. Customers can access over 70,000 fee-free ATMs nationwide through the Allpoint and MoneyPass networks. This account also has standard perks like mobile check deposit and 24/7 customer support. 

However, there are a few caveats to keep in mind. The Rewards Checking account is only available to Amex cardholders who have been customers for at least three months. The account also doesn't offer traditional overdraft protection or Zelle capability. And like the savings account, it doesn't accept cash deposits. 

Other products American Express National Bank offers 

American Express National Bank also offers additional banking products and services, including personal loans, business loans, and business checking accounts. 

American Express National Bank is the banking arm of American Express, which is well-known for its credit cards. These include cash back, travel rewards, and premium cards with various perks and benefits. 

Some popular options are the Blue Cash Preferred® Card from American Express, the American Express® Gold Card, and The Platinum Card® from American Express. These cards can be a great complement to the bank's products and help customers maximize their rewards and benefits across multiple tools.

Is American Express National Bank a good bank to bank with? 

If you value stability in your banking relationship, American Express Bank's straightforward product lineup and established brand name may hold strong appeal. 

With consistently high yields on savings accounts and CDs, the bank makes it easy to grow your money without the need to constantly chase promotional rates or navigate complex requirements.

The bank's Rewards Checking account sweetens the deal even further for Amex cardholders. With a 1.00% APY on all balances and the opportunity to earn Membership Rewards points on debit card purchases, this account offers a rare combination of high yield and rewards. If you're already an Amex cardholder, consolidating your banking relationship with the company can be a logical next step. 

But American Express Bank may not be the perfect fit for every saver. If your primary goal is to secure the absolute highest interest rates on the market, you may find more competitive APYs at other online banks. If you rely on in-person banking services, a traditional bank with physical branches may better suit your needs.

American Express National Bank customer experience 

Online and mobile banking 

As an online bank, American Express Bank shines regarding digital account access and management. Customers can easily check balances, transfer funds, deposit checks, and more through the bank's website and mobile app. 
For existing Amex cardholders, there's the added convenience of managing all your accounts in one place.

"Our members do not have to choose between convenience and value – we give them both,” says Corey Timlin, head of consumer banking at American Express.

Reviewers praise the simplicity and reliability of Amex's online banking experience, with the mobile app earning a near-perfect 4.9/5 rating on the App Store. Android users report a slightly less impressive experience, with a 3.9/5 rating on Google Play.

Many reviews cite the convenience of managing their bank accounts and credit cards together. 

Fees 

One of the key features of American Express Bank is its minimal fee structure. The bank charges no monthly maintenance fees or minimum balance fees on its accounts. 

Many banks require a minimum initial deposit or a minimum balance to earn the highest rate — but not with American Express National Bank. 

Customer service

American Express Bank maintains the high standards for which its parent company is known. Representatives are available by phone 24/7 to assist with any questions or issues, and customers can also reach out via mail, fax, or live chat.

Security

When it comes to protecting your money, American Express Bank takes its responsibility seriously. The bank employs various security measures, from data encryption and multi-factor authentication to automatic logout and 24/7 fraud monitoring.

Debit card holders also enjoy zero liability protection, meaning you won't be on the hook for unauthorized charges. All deposit accounts are FDIC-insured up to $250,000 per person, per account.

How we rated this bank 

Every bank review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity.

We rate all banks on a 10-point system, with 10 being the highest possible score and 1 being the lowest possible score. We assess each card across several key factors, weighted based on what our research shows matters most to readers like you. Learn more about our methodology here.

Here are some of the factors that influenced this bank’s overall score: 

• Interest rates: American Express National Bank stands out for its competitive interest rates on its high-yield savings account and Rewards Checking account, with no requirements to earn the highest rates. While its CD rates are competitive, they are not the highest available in the market.
• Fees: The bank excels in its fee structure, with no monthly maintenance fees, minimum balance fees, or overdraft fees on any accounts. 
• Requirements: American Express National Bank also shines in its lack of minimum deposit and balance requirements, allowing customers to open and maintain accounts without any upfront costs or ongoing balance obligations.
• Product mix: The bank's product mix includes essential account types like savings, checking, and CDs, as well as personal loans and business banking products. The availability of American Express credit cards can complement the bank's offerings.
• Customer service: Customer service is a strong point, with 24/7 phone support and multiple channels for assistance. 
• Digital experience: The digital experience is rated highly, with user-friendly online and mobile banking platforms that offer essential features and the convenience of managing bank accounts and credit cards in one place. The high mobile app ratings further demonstrate customer satisfaction.
• ATM & branch access: Lastly, while American Express National Bank offers fee-free ATM access through a large network for its Rewards Checking account, the lack of physical branches and cash deposit options may be limitations for some. 

The bottom line

American Express National Bank is a solid choice if you're looking for an online bank backed by a reliable brand. Alongside a strong online banking experience and 24/7 customer service, American Express Bank offers several different types of accounts, all with generally competitive yields. 

But, if you’re looking to maximize interest, American Express Bank doesn’t offer the very top rates. You may want to shop around for better APYs, at least for certain savings products like CDs, especially since American Express Bank has steep early withdrawal penalties. 

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.