American Express Bank Ups Savings Account Rate

POSTED ON BY

Deal Summary: High Yield Savings Account (1.25% APY); no minimum balance.

Availability: Nationwide (internet bank)

American Express Bank, FSB increased the APY of its High Yield Savings Account (HYSA) by 10 bps to 1.25%. This is the third 10-bps rate hike since June. This latest rate hike still doesn’t position American Express as a rate leader, but it does position them on the high end of the big internet banks, and it should help to encourage other big internet banks like Ally and Barclays to raise their rates.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.25%--American Express Bank, FSB.High Yield Savings Account
Accounts mentioned in this post. Rates as of November 19, 2017.

The American Express Bank HYSA has a long history. I first wrote about it in 2009. During that time, the account has never been a rate leader, but it has always been fairly competitive. The lowest rate it has ever been was 0.75% for a couple of months in 2012. In early 2015, the rate had gone back up to 0.90% where it held until the middle of May when the rate went up to 0.95%. In middle of June it went up to 1.05%, and in middle of July it went up to 1.15%.

Even though there are several internet banks offering yields of 1.30%, 1.35% and 1.40%, it’s worth noting that American Express Bank has several features that give them an advantage over other internet banks. In fact, I seem to receive more positive opinions from readers about this bank than most other internet banks. In addition to not having monthly fees or minimum balance requirements, the HYSA has no dollar limitations for ACH bank-to-bank transfers. In addition, wire transfers are free. Readers have also commented about the bank’s fast ACH transfers and about their top-notch user interface.

Below are a few of the relevant features that are mentioned in the bank’s FAQ section:

  • ”maximum total account balance is $5 million”
  • Two small test deposits are used to link external accounts
  • Maximum of 3 external accounts can be linked at a time (according to CSR)
  • For Pulling Funds from Your External Bank, ”On the day you initiate your transaction on the Personal Savings website, the funds will be reflected in your Current Balance and begin earning interest. [...] the funds will not appear in your Available Balance until the 5th business day after the deposit is initiated.”
  • For Pushing Funds to Your External Bank, “On the day you initiate your transaction on the Personal Savings site, the amount will be deducted from your Current and Available balance and the funds transfer will be initiated. The funds will generally be reflected at your bank in 1-3 business days.”
  • No dollar limits for ACH bank-to-bank transfers (according to CSR)
  • No wire transfer fees (according to CSR)
  • ”ATM cards, debit cards, or checks are not provided”
  • HYSA “may not be opened in the name of a trust, IRA, or business”
  • ”You may designate up to six (6) beneficiaries per account.”
  • ”Beneficiaries named on POD accounts must be individuals; POD accounts cannot be set up in the names of trusts.”

Thanks to the DA reader, Maecl, for mentioning the rate hike in the DA forum.

Availability

American Express Bank, FSB is an internet-only bank that is headquartered in Salt Lake City, Utah. The High Yield Savings Account and CDs can be opened online or by phone. You can fund the account by either linking your current bank account or by mailing a check.

To open an account with American Express Bank, FSB, you must be at least 18 years old, a U.S. citizen or a resident alien with a valid Social Security number or other taxpayer identification number and have a residential address in the United States.

Bank Overview

American Express Bank, FSB is currently the 39th largest bank in the nation based on assets. It has total assets just under $50 billion, with over 893k customer accounts. The bank has an overall health grade at DepositAccounts.com of “A” with a Texas ratio of 3.12% (excellent) based on June 30, 2017 data. Please refer to our financial overview of American Express Bank, FSB for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35328).

How the Savings Account Compares

When compared to the 206 Savings Accounts and 177 Money Market Accounts tracked by DepositAccounts.com that are available nationally and have no large minimum requirements or small maximum balances, 11 savings accounts and 6 money market accounts have higher rates. Below is a sample of these, showing how they compare with American Express Bank.

The above rates are accurate as of 9/28/2017.

To review the top Savings and Money Market rates, both nationwide and state specific, please refer to our Savings Account rates table and Money Market Account rates table. To find the best accounts in your area, please refer to our new Rates Map page.

Related Pages: Salt Lake City savings accounts, savings accounts, nationwide deals, Internet banks

Comments
buckeye61
buckeye61   |     |   Comment #1
Good to see this top notch online bank become a little more competitive with their savings rate. Like Ken mentioned in his blog, this will apply some pressure on other major online banks to also increase their savings account rates. Of the three major credit card companies with online banks(Discover Bank and Capital One being the other two)American Express had been the slowest to raise rates, but this move puts them ahead of both of them.
acu
acu   |     |   Comment #2
An Alliant CU rep told me their savings rate will go up on Oct 1 but he wouldn't disclose the new rate.
acu
acu   |     |   Comment #12
1.16% yawn
Att
Att   |     |   Comment #3
CIT bank is at 1.35% up to 100K. Others at 1.40% including Dollar Direct.
Tazz
Tazz   |     |   Comment #4
Yah kind of embarrassing for AMEX, they tout this new interest rate, and the CIT Bank ad next to the writeup has a higher rate.
Att
Att   |     |   Comment #5
I saw the ad to but no post regarding CIT's new savings rate
buckeye61
buckeye61   |     |   Comment #6
Ken did a blog on CIT new rate on 9/11/2019
https://www.depositaccounts.com/banks/cit-bank/offers/

I should remind posters that many customers look at more then just the rate when it comes to who they choose to bank with.
Chipmunkbreath
Chipmunkbreath   |     |   Comment #7
You are correct.

Good rates do initially attract me to a bank, but their level of customer service and whether or not they have a good android app is what keeps me there. While I want my bank to remain competitive with rates, it doesn't have to be a rate leader.

Plus the difference between 1.35% vs 1.25% is so minute it is almost meaningless, unless you have several million in your savings account.
Bozo
Bozo   |     |   Comment #13
Chip (re comment #7), rates on savings accounts are not determinative, of that I would agree. Savings accounts are "ready reserve lockers" for money. Parking places for emergency funds, and the like. The reasons I stick with Alliant are well-documented: good customer service, no hidden fees, first order of checks free, user-friendly website, transfer money from saving to checking with the click of a mouse or a phone-call. These factors are important (at least to me).

Would I like to see Alliant (at 1.16%) match CIT's rate of 1.35%? Sure. Are nineteen bps in "delta" enough to make me jump ship? No.

A garden-variety savings account which offers a (reasonably) competitive rate, reliability, ease of use and a link to a checking account is all I ask. You'd be amazed at how many of us Dinosaurs still use checking accounts.

My wife is the bill-payer in our household, and she is absolutely adamant that she wants to review every bill, personally, and will not allow bills to be paid otherwise, after her review, and by check. She keeps the USPS in business, I guess.
DCGuy
DCGuy   |     |   Comment #14
My mail volume to pay bills has nearly dropped to just my Real Estate Tax bill. I could pay for it by online payment method, but I want to limit the chance of a lost electronic payment. A paper check has a higher chance of getting lost, but at least I can gauge the time period of when the check should have cleared and I still like to "milk out" the float time before the check gets cashed. The real estate tax bill is the single highest payment amount over all of my other monthly payments. I have saved a ton on postage costs since I got online back in the 1990s.
Att
Att   |     |   Comment #15
Saving time and postage by using electronic payments. My cable and cell phone bill go to charge card.
Att
Att   |     |   Comment #8
You are correct Ken did post on CIT with the 1.35% rate. I had an AMEX savings account but they have not been competitive. I have an account with Dollar Direct paying 1.40%. CIT also offered a $100 bonus for opening an account with at least 15k. I put 15K in to get the bonus.
nguyenp
nguyenp   |     |   Comment #16
I'm waiting for CIT new saving promotion bonus $ to open my account with them.
kcfield
kcfield   |     |   Comment #9
American Express Savings is outstanding. This bank in my view is the best of the high interest savings accounts because their rates remain consistently high (minimum .90 since early 2015), have no daily ACH limits, have outstanding customer service, and very good security. Consistency in interest rates is essential when using it as one's primary savings.
Att
Att   |     |   Comment #10
They have been off the radar when it comes to high rates for a while. As long as you find them "outstanding" you should stay with them.
Att
Att   |     |   Comment #11
Last time I dealt with AMEX when I lost my charge card I got a call center in India. They would not let me report the card stolen because I did not have the card number. This was after verifying my identity. Sometimes when you call AMEX you do get US based help which is better.
Another Savings Account Rate Hike at American Express Bank
Deal Summary: High Yield Savings Account (1.15% APY); no minimum balance.

Availability: Nationwide (internet bank)

Yesterday, American Express Bank, FSB increased the APY of its High Yield Savings Account (HYSA) by 10 bps to 1.15%. It has been about a month since the last rate hike when the HYSA APY increased from 0.95% to 1.05%. This new rate hike positions the HYSA on par with savings accounts at other big internet banks including Ally, Synchrony and Barclays. Anytime one of the big internet banks increases its savings or money...

Continue Reading
Rate Hike and Review of the American Express Bank’s Savings Account
Deal Summary: High Yield Savings Account (1.05% APY); no minimum balance.

Availability: Nationwide (internet bank)

After several internet banks have raised their rates to 1.15% and above, the recent rate hike of the High Yield Savings Account (HYSA) at American Express Bank, FSB (1.05% APY) may not sound like an exceptional deal. Nevertheless, I thought it was worth a blog post since the internet bank has several features that give them an advantage over others. In fact, I seem to receive more positive opinions from readers about this bank...

Continue Reading