American Express Bank does offer certificates of deposit, but only to customers who already have a savings account with them

American Express Bank sells CDs directly to consumers through its online platform. You cannot open a CD without first opening an American Express Bank savings account. The bank does not offer CDs through branches or phone-only accounts — everything happens online.

American Express CDs are issued by American Express Bank, FSB, which is FDIC-insured up to $250,000 per depositor per account category. This means your CD principal and accrued interest are protected if the bank fails, though the FDIC limit applies across all your deposit accounts at American Express Bank combined, not per CD.

Key Takeaways

  • You must open an American Express Bank savings account before you can purchase a CD from them.
  • American Express CDs are sold only through their website, not by phone or in person.
  • Rates and terms change regularly, so the rate you see today may not be available when you fund the CD.
  • Early withdrawal penalties explore if you take money out before the CD matures, and the penalty amount depends on the term length.
  • Your CD is FDIC-insured up to $250,000 total across all your American Express Bank deposit accounts combined.

How to open an American Express Bank CD

Start by going to the American Express Bank website and opening a savings account if you do not already have one. You will need to provide your Social Security number, date of birth, address, and employment information. The account opens online and typically takes a few minutes.

Once your savings account is active, you can navigate to the CD section of the website and select a term length. American Express Bank offers terms ranging from three months to five years, though the exact terms available change. You choose how much money to deposit — there is usually a minimum, which varies by current promotion.

The rate you see on the website is the rate you will receive when you fund the CD. Rates do not lock in when you start the process — they lock when you actually transfer money into the CD. If rates drop between the time you begin the process and the time you fund it, you will receive the lower rate.

What happens when your CD matures

When your CD reaches its maturity date, American Express Bank will automatically renew it for another term at the current rate unless you tell them not to. You have a grace period — usually around 10 days — to withdraw the money or change the term without penalty. If you do nothing during that window, the CD renews automatically.

If you need the money before maturity, you can withdraw it early, but you will pay an early withdrawal penalty. The penalty is calculated as a number of months of interest. For example, a three-month CD might have a penalty of one month of interest, while a five-year CD might have a penalty of 18 months of interest. The exact penalty structure is listed on the website for each term.

Comparing American Express CDs to other banks

American Express Bank's CD rates are competitive with other online banks, but they are not always the highest available. Banks like Marcus by Goldman Sachs, Ally Bank, and Discover Bank often offer similar or higher rates on comparable terms. The difference between banks can be 0.10% to 0.50% depending on market conditions and the specific term.

One advantage of American Express CDs is that you may already have an American Express credit card or savings account, which makes the process simpler. If you do not have an existing relationship with American Express Bank, opening an account just for a CD takes the same time as opening one at any other online bank.

American Express Bank does not charge monthly fees on savings accounts or CDs, which is standard across online banks. You will not pay for the account itself, but you will lose interest if you withdraw early.

FDIC insurance and account limits

Your CD is protected by FDIC insurance up to $250,000 per depositor per bank. This means if you have a $100,000 CD and a $100,000 savings account at American Express Bank, your total coverage is $200,000. If you add a third account with $100,000, only $250,000 of the three accounts combined is insured — the bank does not insure each account separately.

If you want to insure more than $250,000 at American Express Bank, you can open accounts in different ownership categories. For example, an account in your name alone and an account in joint ownership with your spouse would each have their own $250,000 limit. This is a technical detail that matters only if you are depositing more than $250,000.

How rates are set and when they change

American Express Bank sets CD rates based on the broader interest rate environment, which is influenced by the Federal Reserve's decisions. When the Federal Reserve raises rates, banks typically raise CD rates within days or weeks. When the Federal Reserve cuts rates, banks usually cut CD rates quickly as well.

You cannot lock in a rate before you fund the CD. The rate you receive is the rate posted on the website at the moment you complete the transaction and the money moves into the CD. If you are watching rates and waiting for them to rise, you risk missing the window if rates drop instead.

American Express Bank does not offer rate-matching or rate-bump features on CDs. Once your CD is funded at a certain rate, that rate is fixed for the entire term. You cannot increase your rate if market rates rise, and you cannot decrease your rate if market rates fall.

Frequently Asked Questions

Can I open a CD without a savings account at American Express Bank?

No. American Express Bank requires you to have an active savings account before you can open a CD. You must open the savings account first through their website, then navigate to the CD section. The savings account can have any balance — you do not need to keep a minimum in it.

What is the minimum deposit for an American Express Bank CD?

The minimum deposit varies depending on current promotions and market conditions. It is typically between $1,000 and $25,000, but you should check the American Express Bank website for the current requirement. The minimum is listed clearly before you fund the CD.

Can I add money to my CD after I open it?

No. CDs are fixed-term products. Once you fund a CD, you cannot add more money to it. If you want to deposit additional funds, you must open a separate CD or keep the money in your savings account.

What happens if I withdraw money from my CD early?

You will pay an early withdrawal penalty, which is calculated as a certain number of months of interest based on the CD term. For example, withdrawing from a one-year CD might cost you three months of interest. The exact penalty is shown on the website before you fund the CD.

Is my money safe in an American Express Bank CD?

Yes, up to $250,000 per ownership category. American Express Bank is FDIC-insured, which means the federal government guarantees your deposits if the bank fails. This protection applies to your CD principal and any accrued interest, as long as the total does not exceed the FDIC limit.