American Express Bank is the banking component of the American Express Company, a publicly traded financial services firm (NYSE: AXP). The American Express brand is known mainly for its credit card and traveler’s cheque business, but since 2000 has offered several bank deposit accounts. The company’s credit card and banking businesses operate separately for the most part. Because there are no physical bank branches, American Express Bank's deposit accounts generally offer higher rates of interest than its brick and mortar counterparts.
In the way of personal banking, American Express Bank offers two account possibilities: high-yield savings accounts and Certificates of Deposit (CDs). The high-yield savings account typically earns one of the highest interest rates in the country and is easy to open electronically. The savings account comes with no fees, nor a minimum balance requirement and allows ACH transfers to and from the account at no additional cost. DepositAccounts.com has featured this savings account on multiple occasions for its competitive interest rate and flexibility. Certificates of Deposit (CDs) are available and in term lengths ranging from 6 to 60 months. CDs also have no fees and no minimums and can be easily opened electronically through an online application process. Automatic transfers can be set up to fund either the savings account or the CD, and depositing by check is also an option. DepositAccounts.com reported in 2009 on the bank’s transition from their Savings Accelerator account that was tied to the AmEx credit card, to the new high-yield savings account, which is a “standalone” account.
American Express Bank online banking provides a convenient platform on which account holders can view their transaction history and set up electronic fund transfers. The bank’s web-based system makes the application process quick and simple, and the website makes it easy to switch from a card account to a deposit account.
American Express Bank was originally established in 2000 and is a subsidiary of the American Express Company, a bank holding company located in New York, NY. The bank is headquartered in Salt Lake City, Utah, and offers its savings products exclusively via its Internet platform. The American Express Company is also know as AmEx and was founded in 1850 by Henry Wells and William Fargo, the same founders who started Wells Fargo Bank.
When I first requested that my money be transferred to my bank account that I funded the AX savings account with, they made me verify my account by depositing money to my account and then having me enter the amount. After I verified my bank account, they transferred my money the next day. Well, due to Birthday and Christmas shopping, I had to request another transfer of my money (It says that you can have up to six transfers per month and this was my second). Well, I assumed that my money would be transferred just fine because the first transfer went smoothly, but no, I discovered after I recieved 3 overdraft charges from my bank that they dropped the ball. When I called to report the failed transaction, the girl said that they needed "more" verification from my bank to transfer more of MY MONEY. I told her that is ridiculous if you have already transferred my money to the account that I have already previously verified to refuse to transfer money to that account the very next day. So, I told her to close my account on December 17th, at 12:23 am. I recieved an email on the same day stating that it would take 2-3 days to recieve my money and I checked my account with AX and it showed a zero balance. I patiently waited until today, December 24th, and when I called the young girl, Jessica, said that they talked with my bank on December 19th, and were informed that my bank account was closed WHICH IS A BOLD FACE LIE! They now refuse to send my money in a check, because of policies and procedures? This company stinks, it was not worth the forty cents interest that I made in this nightmare and now because of the holiday they say that they won't be able to do anything AT ALL until December 27th. If you are certain that you won't need the money that you put in savings and are happy in taking risks that you may never see it again, then by all means, use AX.
I switched over to AMEX savings initially for the decent yield; however, their Bank ACH transfers are amazingly fast. Within one day, I can easily transfer money between my accounts. Coming from HSBC, where transfers took three to four days, this experience has been refreshing. The account interface is also very simple and easy to use. I recommend it for anyone who wants to make sure their cash is easily accessible. No need to worry that you don't get access to an ATM for this account, since you can have access to your cash very quickly through a transfer.
Kind of a bait-and-switch technique. They garnered a substantial number of clients and funds at a good % rate above other online banks - then reduced their yield to no better (OK -- 0.01% better) than the next leader.
Not enough of a reason to go with them and it may be time to punish their small-minded thinking.
Another issue I have is that they are located in Utah -- which has a law that says that unattended accounts, inactive for a relatively short period of time, can be closed and funds sent to the state. Possibly why they are located in this state.
I am thoroughly pleased with this online bank. I have a savings account, it doesn't return much money annually, but other than that, I am very pleased with how easy it is to use, on your computer or on the web. American Express makes it easy online to navigate through settings. I don't have to go crazy and look all over the place when locating my statements, making external transfers, viewing past transactions, etc. The page is always readable and the options are readily available and easily found. I am also happy that I don't have to pay any fees for all the simple actions like external transfers. No minimum amounts to transfer too--you can end up with no balance in your savings and it's all good. Lastly, customer service can be easily contacted and they're very knowledgeable and respectful. I would recommend this online bank to anyone, any day.
The Texas Ratio is an indicator of how much capital a bank has available compared to the total value of loans considered at risk. As of March 31, 2014 American Express Bank, FSB. had $242.97 million in non-current loans and owned real-estate with $7.29 billion in equity and loan loss allowances on hand to cover it. This gives American Express Bank, FSB. a Texas Ratio of 3.33% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for American Express Bank, FSB. decreased slightly from 4.38% as of March 31, 2013 to 3.33% as of March 31, 2014, resulting in a positive change of 23.82%.This indicates that the balance sheet and financial strength for American Express Bank, FSB. has improved slightly in recent periods.
In the past year, American Express Bank, FSB. has increased its total deposits by $1.61 billion, resulting in 5.98% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth American Express Bank, FSB. has shown is excellent.
Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. American Express Bank, FSB. has $40.5 billion in assets with $7.29 billion in equity, resulting in a capitalization level of 17.99%, which is excellent.
|FDIC Certificate #||35328|
|Assets and Liabilities|
|Equity Capital||$6.77 billion|
|Loan Loss Allowance||$522.17 million|
|Unbacked Noncurrent Loans||$242.97 million|
|Real Estate Owned||$0|
|Historic Data - March 2013|
|Equity Capital||$7.14 billion|
|Loan Loss Allowance||$583.51 million|
|Unbacked Noncurrent Loans||$242.97 million|
|Real Estate Owned||$0|
|Profit Margin - Quarterly|
|Net Interest Margin||6.25%|
|Return on Assets||5.16%|
|Return on Equity||30.11%|
|Interest Income||$681.91 million|
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|0.80%||-||-||High Yield Savings Account|
|1.35%||-||-||60 Month CD|
|1.10%||-||-||48 Month CD|
|0.90%||-||-||36 Month CD|
|0.70%||-||-||24 Month CD|
|0.60%||-||-||18 Month CD|
|0.55%||-||-||12 Month CD|
|0.40%||-||-||6 Month CD|
American Express Bank, FSB. is an Internet only bank and does not have branch locations. Its headquarters is located at 4315 South 2700 West - Salt Lake City, UT 84184