American Express National Bank increased the rate of its American Express Personal Savings account (Personal Savings) by 10 bps to 2.00% APY. This rate is effective as of 11/15/2018. The last Personal Savings rate hike was on September 27th, a day after the Fed rate hike.
|2.00%||$1||$5m||American Express National Bank||High Yield Savings Account|
American Express National Bank joins Ally Bank and Discover Bank in reaching 2% APY. All three now offer 2% APY on their no-minimum online savings accounts. However, this is now the low end for the large and well-established internet banks. The savings accounts at Barclays, Synchrony and Goldman Sachs Bank USA reached 2.05% APY weeks ago.
CD Rate Hikes
American Express National Bank also raised the rates of its five longer term CDs. Each rate went up by 10 bps. The most noteworthy increase was the 60-month CD: its APY reached 3.10%.
CDs require only a $1 minimum deposit. For the full list of American Express National Bank CD rates, please refer to the CD rates section of our American Express National Bank page.
Today’s CD rate hikes keep American Express National Bank’s mid-term and long-term CDs in the competitive territory for internet banks. The last time the Bank increased CD rates was on September 14th when four of its CDs had rate hikes.
The short-term CDs with terms of 6 and 12 months continue to have disappointing rates. These two rates haven’t changed since 2011.
One important CD change occurred in April. The CD early withdrawal penalties (EWP) increased for new and renewed CDs. Here’s a summary of the changes in days of interest:
- 12 months: EWP will be 270 days (was 90)
- More than 12, less than 48 months: EWP will be 270 days (was 180)
- 48 months, less than 60 months: EWP will be 365 days (was 180)
- 60 month or more: EWP will be 540 days (was 180)
Another additional thing to note is that partial withdrawals from CD accounts are not allowed. You are only allowed to withdraw the full amount in your CD account and the CD account will be closed.
Thanks DA reader, buckeye61, for posting on these rate hikes in the DA forum.
Personal Savings Account Rate History and Features
The American Express Personal Savings 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 respectable when compared with other internet banks. 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 2017 when the rate went up to 0.95%.
Even though there are now several online banks offering yields of over 2.00%, it’s worth noting that American Express National 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 Personal Savings 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, their top-notch user interface and excellent customer service.
Below are a few of the relevant features that are mentioned in the bank’s FAQ section that are worth repeating. I also included three features that were based on my conversation with a CSR on April 5, 2018.
- No monthly service fees or minimum required balance..
- ”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)
- Wire transfers have a minimum amount of $500 per deposit or withdrawal (added to disclosure on 4-1-18)
- ”ATM cards, debit cards, or checks are not provided”
- Personal Savings “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.”
American Express National Bank is an internet-only bank that is headquartered in Salt Lake City, Utah. The Personal 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 National Bank, 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.
The bank has an overall health grade at DepositAccounts.com of “A” with a Texas ratio of 4.68% (excellent) based on June 30, 2018 data. Please refer to our financial overview of American Express National Bank for more details. The bank has been a FDIC member since 1989 (FDIC Certificate # 27471).
How the American Express Personal Savings Account Compares
When compared to Savings Accounts and Money Market Accounts tracked by DepositAccounts.com that are available nationally with similar minimum balance requirements and without maximum balance limitations, 16 savings accounts and 8 money market accounts have higher rates than the American Express Personal Savings Account rate.
|Interest Rate||Account Name||Credit Union/Bank|
|2.35% APY||MySavings Account (no min/no max)||MySavingsDirect|
|2.27% APY||High Yield Online Savings ($100 min to open/no max)||Vio Bank|
|2.25% APY||Online Money Market ($50 min to open/$1m max)||MemoryBank|
|2.00% APY||American Express Personal Savings (no min/no max)||American Express National Bank|
The above rates are accurate as of 11/15/2018.