American Express does not offer a traditional savings account
American Express is primarily a credit card and payment company, not a bank that takes deposits. They do not offer savings accounts, checking accounts, or money market accounts where you deposit your own money and earn interest. If you are looking for a place to save money and earn interest, you will need to look elsewhere — either at a traditional bank, an online bank, or a credit union.
American Express does offer some products that involve holding money, but these work differently than a savings account. Understanding what they actually offer, and what they do not, helps you figure out where to put your savings.
Key Takeaways
- American Express does not have savings accounts, checking accounts, or money market accounts where you deposit your own money.
- American Express offers a cash management account through their banking subsidiary, but this is designed for business owners and high-net-worth individuals, not everyday savers.
- If you want to earn interest on savings, you will need to open an account at a bank, online bank, or credit union instead.
- American Express credit cards do offer cash back rewards, but this is not the same as a savings account and does not earn interest.
What American Express actually offers instead of savings accounts
American Express does own a bank — American Express Bank, Ltd. — but it operates very differently from consumer banks. This bank primarily serves business customers, institutional clients, and wealthy individuals. It offers services like commercial lending, trade finance, and treasury management, not consumer savings products.
In 2020, American Express launched a cash management account through a partnership with other financial institutions. This product is designed for small business owners and self-employed people who need a place to hold business cash and pay bills. It is not a savings account in the traditional sense, and it is not open to regular consumers who straightforward want to save money.
Cash back rewards are not the same as savings
Many American Express credit cards offer cash back — a percentage of what you spend gets credited back to your account. This can feel like saving money, but it works very differently from a savings account. With cash back, you are earning a small return on money you are already spending, not earning interest on money you have set aside.
Cash back also requires you to carry a credit card balance or pay off charges regularly. A savings account lets you deposit money, leave it untouched, and watch it grow through interest. The two serve completely different purposes in your financial life.
Where to open a savings account instead
If you want to save money and earn interest, you have three main types of institutions to choose from: traditional banks, online banks, and credit unions. Traditional banks are the ones with physical branches in your neighborhood. Online banks have no branches but typically offer higher interest rates because they have lower overhead costs. Credit unions are member-owned financial institutions that often offer competitive rates and personalized service.
Each type has different requirements for opening an account. Most require a government-issued ID, proof of address, and an initial deposit — though some online banks have no minimum deposit requirement. The interest rate you earn varies by institution and changes over time, so it is worth comparing a few options before you choose.
Why American Express does not offer consumer savings accounts
American Express built its business around credit and payments, not deposits. Taking deposits from consumers requires different regulatory oversight, different technology systems, and a different business model than what American Express has developed. They are very good at what they do — issuing credit cards and processing payments — and they have chosen to focus there rather than compete in the savings account market.
This does not mean American Express is a bad company or that you should not use their credit cards. It straightforward means that if you need a place to save money, you will need to use a different financial institution for that purpose.
How to use American Express alongside a savings account
Many people use both: an American Express credit card for everyday purchases and rewards, and a savings account at a bank or credit union for money they want to set aside. You might use your American Express card to earn cash back on groceries and gas, then deposit that cash back into your savings account. Or you might use the card for business expenses and keep your personal savings elsewhere.
The key is understanding what each product does. A credit card is a tool for borrowing and paying back. A savings account is a tool for storing money and earning interest. They work best when you use them for their intended purposes.
Frequently Asked Questions
Can I earn interest on my American Express account balance?
No. American Express credit cards do not earn interest on your balance. If you carry a balance month to month, you will be charged interest instead. You only earn rewards (like cash back) on purchases you make, not on money sitting in the account.
Does American Express offer any product where I can deposit money and earn interest?
Not for consumers. American Express Bank offers cash management accounts for business owners and high-net-worth individuals, but these are not open to the general public. For consumer savings, you need to use a traditional bank, online bank, or credit union.
If I get cash back from my American Express card, where does that money go?
Cash back is typically credited to your card account as a statement credit, reducing what you owe. Some cards let you transfer it to a bank account instead. Either way, it is not earning interest — it is just sitting there until you use it or withdraw it.
What is the difference between a credit card and a savings account?
A credit card lets you borrow money to make purchases and pay it back later. A savings account lets you deposit your own money, keep it safe, and earn interest. Credit cards charge interest if you do not pay back what you borrowed. Savings accounts pay you interest on the money you deposit.
Can I open a savings account at American Express Bank?
American Express Bank does not offer savings accounts to consumers. It serves business clients and institutional customers. To open a consumer savings account, you will need to contact a traditional bank, online bank, or credit union in your area.