American Express National Bank Review 2021 | Savings Account & CD Rates

Banking
Updated: 5th Mar 2021
Written by Drew Cheneler
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Banking
March 5, 2021
Written by Drew Cheneler

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These days, it can be tough to find a simple, affordable bank that allows you to store your hard-earned cash without extra fees or trying to upsell you with other banking products.

AMEX is different – it’s an online-only savings institution that allows you to save your money in either a basic high yield savings account or in a CD savings account.

Let’s break down everything you need to know about this accessible and affordable bank now.

American Express Bank Overview

Feature(s):Details:
Minimum Deposit:$0
High Yield Savings APY:0.50%
CD Term Lengths:Up to 60 Months
Products Offered:CDs and Savings Accounts
Year Founded:1850

What is American Express Bank?

American Express Bank or AMEX is an online-only bank that offers various specialized or personalized banking products to help you save and reach your financial goals.

It’s a good choice for saving money but does not include options for other account types or loans.

What Does American Express National Bank Offer?

There are tons of online banks to choose from, but AMEX is distinguished in large part due to its high-quality savings accounts and good CDs or certificates of deposit (which is a type of savings account).

These specialized savings accounts are perfect if you want to save money until the maturity date to prevent anyone from dipping into it, such as a college savings account.

While it has a variety of online offerings, AMEX does not have any in-person branches. Therefore, your banking experience will be entirely digital; whether or not this is a downside depends on your preferences.

Its overall banking options are also quite limited, making this a good pick for folks who specifically need to save money.

AMEX Bank Featured Products

Amex Personal Savings (High Yield Savings Account)

  • Account Minimum: $0
  • APY: 0.50%

AMEX’s online savings account has one of the best annual percentage yields in the industry and is incredibly accessible since it requires no account minimum and has no monthly service fees.

Of course, it doesn’t come with an ATM card, given AMEX’s online-only status. All in all, it’s an ideal savings account for students, singles, and individuals needing a no-nonsense and affordable banking option to stash their cash.

American Express CD Rates

TermAPY
6 Months:0.10%
12 Months:0.20%
18 Months:0.20%
24 Months:0.40%
36 Months:0.45%
48 Months:0.50%
60 Months:0.55%

If you’d rather store your money until a particular date, such as saving for college or saving up to make a big purchase, you can transition your savings account into a certificate of deposit.

These have maturity rates ranging from 6 to 60 months, and each account comes with competitive interest rates.

You can’t contribute extra money to a CD as you can with a savings account, but these are undoubtedly great options if you have lump sums you want to grow over a period of several years.

You’ll end up with more than if you’d used a regular savings account because of the included high-interest rates.

Related: Best CD Rates

Additional Financial Products Offered by AMEX

  • Credit Cards: AMEX offers a variety of credit cards. These have a range of credit limits and varying credit score requirements, so you don’t need perfect credit to get a card from here. You’ve probably heard of several of these credit cards already, including the American Express Gold Card and American Express Green Card
  • Personal Loans: Unfortunately, AMEX doesn’t offer personal or business loans in any capacity. Therefore, you’ll need to visit a different financial institution to access these banking products.
  • Business Loans: See above.

American Express Bank Review: Fees, Customer Support, & Experience

Banking Experience

AMEX’s bank website is pretty navigable and intuitive (which is important since it doesn’t have any brick-and-mortar branches).

It also has a high-quality FAQ section you can peruse if you have any basic questions you need answered quickly.

Customer Support

AMEX’s customer service is hit or miss overall. While you can call them 24/7, the mobile app is only available for AMEX’s credit cardholders.

Furthermore, you may not be able to reach someone online at all hours of the day.

Overdraft Fees

AMEX’s overdraft fees are about middle-of-the-road compared to other banking institutions. You’ll pay on average $34 for every overdraft charge on your credit card.

AMEX Bank Pros and Cons

Pros:

  • AMEX’s online website is easy to use and understand.
  • AMEX offers an excellent personal savings account option with a good APY.
  • AMEX’s CDs have good interest rates and a decent range of term lengths to suit any savings goal.
  • There are no hidden or strange fees to worry about.
  • It’s easy to open an account since there’s no charge and no minimum account balance.

Cons:

  • No in-person branches, so everything must be handled online (i.e. you need a computer to bank with this company).
  • No loans, either, so it’s really only a good choice for saving your money.

American Express National Bank FAQs

Is American Express a Good Bank?

That depends on what you need out of it. AMEX is a perfect pick if you need a simple bank in which to store your paychecks or save up for a big purchase, like a car loan or a down payment on a house.

But it’s very limited in other ways. You’ll need to take care of most of your other banking goals elsewhere, including getting loans or opening a checking account.

Is American Express National Bank FDIC Insured?

Yes. All of your deposits are insured as long as they don’t exceed $250,000.

Is American Express National Bank a Real Bank?

Yes. It saves your money and can provide you with credit cards. But it doesn’t have any brick-and-mortar bank locations you can visit.

Is American Express Online Banking Safe?

Yes. AMEX’s online website is protected with SSL certification and other digital security measures.

Bottom Line: American Express Bank Review

All in all, AMEX does a great job at what it sets out to do: provide affordable and accessible savings options for regular folks. So long as you come to this bank needing an easy savings account option, you’ll likely be satisfied.

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Drew Cheneler
Drew Cheneler
Drew is a recognized Credit, Small Business, and Personal Finance Expert. He has been quoted in CNBC, Fox Business News Section, The Huffington Post, Business.com, Moneyunder30, US Chamber of Commerce, and more. He is known for breaking down complex personal finance topics into action-oriented advice, so you can make the most of your hard-earned money.