American Express National Bank Boosts Personal Savings Account Rate

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Deal Summary: American Express Personal Savings account (1.90% APY)

Availability: Nationwide (internet bank)

It didn’t take long for American Express National Bank to respond to yesterday’s Fed rate hike. The Bank raised its American Express Personal Savings account (Personal Savings) rate by 10 bps to 1.90% APY. This rate is effective as of 9/27/2018. We will likely see other online banks responding to yesterday’s Fed rate hike with their own rate increases in the coming weeks, and it shouldn’t be long before most of the big online banks break through 2% on their savings accounts.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.90%$1$5mAmerican Express National BankHigh Yield Savings Account
Rates as of October 18, 2018.

As DA reader, buckeye61, noted in the DA Forum, “American Express National Bank inches ahead of Discover Bank and Capital One in the big Credit Card Banks rate competition.” A few new online banks and a few small online banks have higher rates on no-minimum savings accounts. Compared to large online banks, the 1.90% is in the high range, but that will likely not last long. In a few more weeks, 1.90% will probably be on the low end.

The list below shows the dates of the past three Personal Savings rate hikes and how they coincided with the Fed rate hikes. It shows what future rate hikes we may see in the next few months. It shouldn’t be long before the Personal Savings rate reaches 2%.

  • Sep 27: Personal Savings: 1.90% APY
  • Sep 26: Federal Reserve Target Funds Rate: 2.00% to 2.25%
  • Aug 23: Personal Savings: 1.80% APY
  • June 22: Personal Savings: 1.75% APY
  • June 13: Federal Reserve Target Funds Rate: 1.75% to 2.00%
  • June 7: Personal Savings: 1.65% APY

One interesting thing to note is that this current APY (1.90%) is a full percentage point higher than the rate American Express National Bank was offering on this account from January 2015 to May 2017 when it was stuck at 0.90% APY. On May 18, 2017, the APY finally started to rise.

Thanks to DA reader who emailed me this rate news, and thanks DA reader, buckeye61, for posting on this rate hike 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 several online banks offering yields of over 1.90%, 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.”

Availability

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.

Bank Overview

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 the 220 Savings Accounts and 190 Money Market Accounts tracked by DepositAccounts.com that are available nationally and have no large minimum requirements or small maximum balances, nine savings accounts and no money market accounts have higher rates. When I posted on the American Express Personal Savings rate increase on August 24th, 13 savings accounts and four money market accounts had higher rates.

Interest RateAccount NameCredit Union/Bank
2.25% APYMySavings Account (no min)MySavingsDirect
2.11% APYHigh Yield Online Savings ($100 min to open)Vio Bank
1.90% APYAmerican Express Personal Savings (no min)American Express National Bank

The above rates are accurate as of 9/27/2018.

To find 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.

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

Comments
RJM
RJM   |     |   Comment #1
Discover will match it within a week, unless the executive in charge is on vacation.

Northerns short lived 2.26% still leads...for those grandfathered in. But, not for long.
#2 - This comment has been removed for violating our comment policy.
Att
Att   |     |   Comment #3
If someone beats Northern then that is great. I was with Dollar for about a year and as soon as Northerns deal come out moved my funds over to Northern. I have the 2.26% rate guaranteed till June 2019.

I had an savings account with Amex which I closed years ago when they stopped offering competitive rates.
RJM
RJM   |     |   Comment #5
I meant not for long as a leading rate. Although with my current balance, even $2.40% is probably not worth opening a new account over.Keesler & NASA wiped me out. (Except for some brokerage acct money)
steve_010
steve_010   |     |   Comment #9
re: Discover. Almost. They only went up .05% to 1.85%. Slackers.
#4 - This comment has been removed for violating our comment policy.
oldguy
oldguy   |     |   Comment #7
Purepoint Up to 2.15%
PatGeneric
PatGeneric   |     |   Comment #8
Thank you, Ken, for such detail you put into each of your entries. Your hard work saves your followers hours and hours of calls and research. You're the best!!
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Availability: Nationwide (internet bank)

American Express National Bank raised the rates of four of its long-term CDs by 10 bps yesterday. The most noteworthy increase was the 60-month CD: its APY reached 3.00%. All four of the new CD APYs are shown below in bold and are effective as of 9/13/2018. The previous APYs are noted inside parentheses.

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Availability: Nationwide (internet bank)

Yesterday, American Express National Bank raised its American Express Personal Savings account (Personal Savings) by 5 bps to 1.80% APY. Also, its 18-month CD had rate increase of 10 bps to 2.50% APY. These are small increases, but it’s always nice to see rate hikes at the large internet banks. These rates are effective as of 8/23/2018.

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Availability: Nationwide (internet bank)

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Deal Summary: American Express Personal Savings account (1.65% APY); no minimum balance.

Availability: Nationwide (internet bank)

American Express National Bank raised its American Express Personal Savings account (Personal Savings) by 5 bps to 1.65% APY. This is the second 5-bps rate hike in the last two weeks. Since the March Fed rate hike, the Personal Saving account rate has risen a total of 20 bps. The 1.65% APY applies to all balances. There are no monthly fees or minimums.

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Availability: Nationwide (internet bank)

American Express National Bank raised its American Express Personal Savings account (Personal Savings) by 5 bps to 1.60% APY. Much larger rate increases were made to five CDs with yield gains that ranged from 35 bps to 160 bps. All five of the new CD APYs plus the new Personal Savings account APY are shown below in bold and are effective as of 5/24/2018. The previous APYs are noted inside parentheses.

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