American Express Savings Rates for April 2024

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When it comes to saving money, where you stash your funds can make a world of difference. Opening a savings account with a lackluster interest rate can cause your progress toward savings goals to falter. But opting for a savings account or CD with a top-tier interest rate can help you move your finances in the right direction.

American Express®, Member FDIC might be best known for it’s worthwhile credit cards. But American Express is also one of many financial institutions offering savings accounts and certificates of deposit. GOBankingRates explores the savings rates from American Express to help you decide if it’s the right place to stash your savings.

American Express Savings Account Interest Rates

American Express offers a high-yield savings account with a Annual Percentage Yield (APY). The account comes with no monthly fees or minimum balance requirements. The interest attached to your account compounds daily and is credited to your account on a monthly basis.

Like all high-yield savings accounts, you can tap into the funds at any time. While you won’t receive an ATM card with this account, you will be able to transfer funds between accounts.

Below is a closer look at the details of this account:

American Express CD Rates

A standard savings account isn’t the only way to save for the future. Certificates of deposit offer a different way of saving. Essentially, you’ll commit to storing your funds in a CD for a set period of time. In exchange, you’ll lock in a pre-determined interest rate. The catch is that if you withdraw your funds early, you’ll often face a penalty.

American Express offers CD terms ranging from 11 months to five years. APYs are as high as . The table below gives you a closer look at the American Express CD rates:

As with most certificates of deposit, American Express imposes an early withdrawal penalty if you tap into your CD funds before the end of your term. With CDs of a term less than 12 months, the penalty is equal to 90 days’ interest. With CD terms of 12 to 48 months, the penalty is equal to 270 days’ worth of interest. For CD terms of at least 48 months but less than 60 months, the early withdrawal penalty is equal to 365 days’ worth of interest. And for CDs with a term of 60 months or more, the early withdrawal penalty is equal to 540 days’ of interest.

When the maturity date rolls around, the CD will automatically renew into a new term at the current interest rates. But you’ll have a 10-day grace period to withdraw your funds. You also have the option to setting the CD funds to not renew when the CD matures by calling the bank.

Is It Safe To Work With American Express?

The savings you stash with American Express are FDIC insured. That means the funds are protected against loss for up to $250,000 per depositor.

How Do American Express Interest Rates Compare

The savings account and CDs offered by American Express have relatively attractive interest rates attached. While it’s possible to find slightly higher APYs elsewhere, you won’t be missing out on much if you go with American Express. And when compared to big brick-and-mortar banks, like Bank of America, the rates offered by American Express are especially attractive.

Below is a look at how American Express CDs stack up.

Where Should You Stash Your Savings?

When it comes to tucking your savings away, the first decision to make is how much access you want to your funds. In general, it’s a good idea to stash funds you might need at a moment’s notice in a high-yield savings account. For example, you might tuck your emergency fund into a high-yield savings account for easy access if you run into an emergency. But after you fully stock your emergency fund with several months’ worth of expenses, you might consider opening a CD to hold funds you don’t plan on using for an extended period of time. After all, you don’t want to get stuck paying a penalty to access your funds when you need them.

Once you have an idea of what kind of savings product you prefer, it’s time to start comparing your options across multiple financial institutions. As you consider your options, the APY is a key consideration. But you’ll also need to watch for fees that could eat into your potential savings. Additionally, make sure the financial institution you work with protects your funds with either FDIC or NCUA coverage. Take the time to find an account that meets all of your needs.

Final Take to GO

Overall, American Express offers attractive APYs on its savings account, and most of its CD terms. The minimal fees and lack of a minimum balance requirement could make American Express the way to go for your situation. But it never hurts to take a look at your other options to confirm you are locking in the best rates. Explore top CDs and high-yield savings account options with GOBankingRates today.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of April 22, 2024.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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