Personal Savings Account and CD Rates Up Again at American Express National Bank

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Deal Summary: American Express Personal Savings account (1.75% APY); no minimum balance.

Availability: Nationwide (internet bank)

American Express National Bank raised its American Express Personal Savings account (Personal Savings) by 10 bps to 1.75% APY. Also, four CDs had rate increases with yield gains of 15 bps and 20 bps. All four of the new CD APYs plus the new Personal Savings account APY are shown below in bold and are effective as of 6/22/2018. The previous APYs are noted inside parentheses.

  • Personal Savings - 1.75% (1.65%)
  • 24 mo - 2.45% (2.30%)
  • 36 mo - 2.55% (2.35%)
  • 48 mo - 2.60% (2.40%)
  • 60 mo - 2.85% (2.70%)

The new Personal Savings rate is approaching the rate leaders for no-minimum and non-promotional savings and money market accounts. A few small internet banks have higher rates on no-minimum savings accounts. Compared to large internet banks, the 1.75% is on the high end. That’s a change for American Express National Bank which has a savings account rate history of being in the mid range for large internet banks. As of 6/22/2018, we only have two large internet banks offering no-minimum savings or money market accounts with equal or higher rates. The first is Synchrony Bank which raised its High Yield Savings account rate to 1.75% APY on June 5th. The other large internet bank is CIT Bank which has a money market account that earns 1.85% APY (Its only minimum is a minimum opening deposit of $100.)

The previous Personal Savings rate hike was on June 7th when the rate went up by 5 bps. The new 1.75% APY applies to all balances. There are no monthly fees or minimums.

CDs also have no minimum deposit requirement. The details of the current rates and the rate histories can be seen in the following table. 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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.90%--American Express National Bank60 Month CD
2.60%--American Express National Bank48 Month CD
2.55%--American Express National Bank36 Month CD
2.50%--American Express National Bank24 Month CD
1.75%-$5mAmerican Express National BankHigh Yield Savings Account
Rates as of August 21, 2018.

Thanks to DA reader, buckeye61, for mentioning the 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 several small internet banks offering yields of over 1.80%, it’s worth noting that American Express 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.

  • ”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.”

CD Rate Hikes

Today’s CD rate hikes keep American Express National Bank’s mid-term and long-term CDs in the competitive territory for internet banks. This is the third round of rate hikes for these CDs since last December. The previous round of CD rate hikes was on May 24th.

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.

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

American Express National Bank is currently the 38th largest bank in the nation based on assets. It has total assets just over $57 billion, with over one million customer accounts. The bank has an overall health grade at DepositAccounts.com of “A” with a Texas ratio of 5.34% (excellent) based on March 31, 2018 data. Please refer to our financial overview of American Express National Bank for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 27471).

How the American Express Personal Savings Account Compares

When compared to the 219 Savings Accounts and 186 Money Market Accounts tracked by DepositAccounts.com that are available nationally and have no large minimum requirements or small maximum balances, six savings accounts and three money market accounts have higher rates. When I posted on the American Express Personal Savings rate increase on June 7th, 11 savings accounts and six money market accounts had higher rates. Below is a sample of these accounts with higher rates, showing how they compare with American Express National Bank.

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.

The above rates are accurate as of 6/22/2018.

Related Pages: Salt Lake City savings accounts, savings accounts, 5-year CD rates, nationwide deals, Internet banks

Comments
Ann
Ann   |     |   Comment #1
"Maximum of 3 external accounts can be linked at a time"

Wow, that's a tiny limit. Their otherwise-close competitor Discover Bank allows ten times that many.
Gunther
Gunther   |     |   Comment #2
I have Amex HYSA, Barclays HYSA and Capital 360. Amex use to lag behind with increases but now theyre the leader. Plus, they have been the quickest with transfers, better alerts, email updates and overall better customer service.

Barclays currently 1.65 and Capital lagging at 360.

Capital has a week before I take the majority and move it to Amex.
Joe
Joe   |     |   Comment #3
Marcus up to 1.80%
Satis+
Satis+   |     |   Comment #4
This bank has absolutely been the best online bank for me for years, as noted by others, for its speed of transfers, interest rate, online security and customer service. I've dealt with other online banks and even if some may have allowed for more online links (never a major difference for me), the overall status of American Express Bank were, and have remained, obvious.
RJM
RJM   |     |   Comment #5
This will cause Ally & Discover to raise their savings rate to match Amex. I have never had an Amex account. I do not even have their credit card. But, I have been thinking about getting one just because they have some deals from time to time that I miss out on. Waiting for a really good sign on deal and I have not found one yet. I think I saw $150-200 with a $500 spend and I may have to accept that but I will look/wait for something better first. Not interested in anything that requires a huge spend. $500 is ok,maybe $1000.

Wish the larger banks would match rate leaders instead of just each other.
Luvcd
Luvcd   |     |   Comment #6
AmExp card is great for bus travel...also look at coll/comp AmExp insurance on rental cars
RJM
RJM   |     |   Comment #7
Yes, but I never business travel. And rarely rent a car. Is the amex insurance any better than what comes with most credit cards? I have not rented in a very long time but I know back then, my regular non amex card covered the insurance so I declined it from the rental company. That was a VERY long time ago and I have not rented since.
Luvcd
Luvcd   |     |   Comment #8
Whether bus or leisure travel...If one has coll/comp on any car they own/lease then the cc company will not pick up coll/comp. Ergo, the benefit of AmEx...no insurance claim and they cover it whether or not one has that coverage on an own/leased vehicle. However, liability would "normally" be covered by your own ins. co., not AmEx
scott
scott   |     |   Comment #9
AMEX is also secondary insurance. I think unless you pay some extra yearly fee for their supplementary coverage, you still pay with your own insurance first.
Luvcd
Luvcd   |     |   Comment #10
There coll/comp insurance is primary and costs $17.99 per rental transaction when one charges the rental cost to their card...of course, one has to sign up for the insurance by calling them
RJM
RJM   |     |   Comment #11
I still remember calling I think Visa and making sure it covered the rental car for damage for both me and my friend to drive and they said yes. We never needed it but it was a long trip and I was a broke kid and did not want a huge liability from an accident hanging over me.
Luvcd
Luvcd   |     |   Comment #12
Visa (or any cc co.) will (normally) cover coll/comp if you or any driver don’t have that coverage by your insurer. Claim against ins company is quite different than cc coverage...check out the difference
DCGuy
DCGuy   |     |   Comment #13
Note that in July, the Citibank car rental supplemental rental coverage will not cover the loss of use charges of the rental company if you have an accident where the rental car goes out of service.
Kerry
Kerry   |     |   Comment #14
Well now Ally which had been trailing Amex Bank is 5bps ahead. I hope Ally Bank catches up to Synchrony soon.
RJM
RJM   |     |   Comment #15
Amex, then discover. Like clockwork but always laggards compared to top rates.

Closed another Discover account. Will close the final one on the 1st because when I asked about accrued interest when closing an account, they did not answer via their messaging system. Last account has 1 cent left. Plus maybe a few cents in interest on 9/1.

Im keeping my credit card but no need for the bank account anymore.
American Express National Bank Ups Personal Savings APY
Deal Summary: American Express Personal Savings account (1.65% APY); no minimum balance.

Availability: Nationwide (internet bank)

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Deal Summary: American Express Personal Savings account (1.60% APY); no minimum balance.

Availability: Nationwide (internet bank)

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Deal Summary: American Express Personal Savings account (1.55% APY); no minimum balance.

Availability: Nationwide (internet bank)

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Availability: Nationwide (internet bank)

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Availability: Nationwide (internet bank)

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