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.
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.
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.
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.