American Express National Bank Raises Personal Savings Account Rate

POSTED ON BY

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

Availability: Nationwide (internet bank)

American Express National Bank (had been named American Express Bank, FSB before April 1st) raised its American Express Personal Savings account (Personal Savings) by 10 bps to 1.55% APY. The previous Personal Savings rate hike was in late January when the rate also went up by 10 bps. The 1.55% APY applies to all balances. There are no monthly fees or minimums.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.55%--American Express National BankAmerican Express Personal Savings
Rates as of April 21, 2018.

The new Personal Savings rate isn’t high enough to be a rate leader, but it does position American Express to be in the mid-range of the big internet banks, and it should help to encourage other big internet banks like Ally and Discover to raise their rates. The big internet banks have been a little slow to hike their savings account rates following last month’s Fed rate hike.

New Deposit Account Agreement

With the new name came a new deposit account agreement with an effective date of April 1, 2018. Thanks to the DA reader, thowellIII, for his Forum post on this change. The most significant change is an increase to early withdrawal penalties (EWP) for new CDs or 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 change is relevant to the Personal Savings. Wire transfers now have a minimum amount of $500 per deposit or withdrawal. Wire transfers remain free for both incoming and outgoing transfers.

The above changes were the only changes that the CSR mentioned. I have not fully reviewed the agreement. If you see other changes, please leave a comment.

Personal Savings Account Rate History

For long-time American Express account holders, these recent rate increases may be a pleasant surprise. For the last several years, the American Express Personal Savings has been a little uncompetitive compared with other big internet banks. That started to change last May when it first increased the Personal Savings rate from 0.90% to 0.95%. After six 10-bps rate hikes since May, the Personal Savings is now competitive.

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%.

Personal Savings Account Features

Even though there are several internet banks offering yields of over 1.70%, 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 and about their top-notch user interface.

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. All of these are the same as I reported in January.

  • ”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”
  • 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.”

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

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 $59 billion, with over one million customer accounts. The bank has an overall health grade at DepositAccounts.com of “B+” with a Texas ratio of 5.31% (excellent) based on December 31, 2017 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 # 35328).

How the American Express Personal Savings Account Compares

When compared to the 204 Savings Accounts and 176 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 four money market accounts have higher rates. When I posted on American Express Personal Savings rate increase in January, eight savings accounts and three 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.

Interest RateAccount NameCredit Union/Bank
2.00% APYExclusive Savings - new account rate (no min)Popular Direct
1.85% APYeOne Savings - new money (no min)Salem Five Direct
1.80% APYDollar Savings Account (no min)DollarSavingsDirect
1.55% APYAmerican Express Personal Savings (no min)American Express National Bank

The above rates are accurate as of 4/5/2018.

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 higher rates, raise the deposit amount in the box at the top of the tables.

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

Comments
kcfield
kcfield   |     |   Comment #1
Excellent summary. What is important about American Express Savings, as noted in the article is that their rates stay consistently high, meaning one can trust their life savings with them without worry of significant rate fluctuations. The no minimum, no ACH limits, excellent customer service, and security consciousness are other factors that have made this the chosen saving account for my family.
Sam
Sam   |     |   Comment #3
#1, did you read their disclosure:
"...the funds will not appear in your Available Balance until the 5th business day after the deposit is initiated"
and they do not specify when the interest starts to accumulate and
When Pushing Funds out, you lose instant control of your money and no interest is paid from that moment when you click send until the money arrive at the other bank in 1-3 business days.

So, when you combine the ACH rules for money sent and received, you may lose almost a week of interest on your money.
There is cyber black hole at this company. I would avoid it as plague, they cheat you straight in your face.
kcfield
kcfield   |     |   Comment #4
Sam: I transfer funds at least three time a month from my checking account at another bank to my Amex savings. It always shows up in my account by the second business day after transfer.. I find the interest accumulation to be accurate, and they were particularly helpful when I purchased my home to ensure that my ACH transfer went smoothly. You will notice that they are at about 4.5 stars with 223 customer reviews--an unusually high rating. I cannot think of another financial institution I have rated five stars other than AMEX. With that said, I think people need to trust their own opinions and instincts about where to invest. It sounds like your own experience with them has not been favorable, so I can certainly understand you decision to do business elsewhere.
buckeye61
buckeye61   |     |   Comment #2
Nice to see any rate increases. As far as the changes to CD EWP: those penalties are especially punitive and when you also add the fact that the rates are not competitive its a non-starter for me. No thanks!
American Express Bank Ups Savings Account Rate
Deal Summary: High Yield Savings Account (1.45% APY); no minimum balance.

Availability: Nationwide (internet bank)

We keep seeing more rate hikes at internet banks. The latest is from American Express Bank, FSB which raised the rate of its High Yield Savings Account (HYSA) by 10 bps to 1.45% APY. The previous HYSA rate hike was just last month when the rate also went up by 10 bps.

The 1.45% APY applies to all balances. There are no monthly fees or minimums. The new HYSA rate isn’t high enough...

Continue Reading
American Express Bank Ups Savings Account and Long-Term CD Rates
Deal Summary: High Yield Savings Account (1.35% APY); no minimum balance. 5-Year CD (2.35% APY), no minimum deposit.

Availability: Nationwide (internet bank)

Another internet bank has increased its rates just a day after the Fed rate hike. American Express Bank, FSB raised the rates of its High Yield Savings Account (HYSA) and its long-term CDs. This brings back fond memories of 2005 and 2006 when it was common for internet banks to raise rates soon after Fed rate hikes.

First, let me review the HYSA. The savings account rate increased...

Continue Reading
American Express Bank Ups Savings Account Rate
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.

Continue Reading
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


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact feedback@depositaccounts.com to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.