American Express does not offer certificates of deposit

American Express Bank does not sell certificates of deposit (CDs). A CD is a savings product where you deposit money for a fixed period — usually three months to five years — and earn a set interest rate. American Express focuses on credit cards, charge cards, and some savings accounts, but CDs are not part of their product line.

If you are looking for a CD, you will need to open one at a different bank. Many banks offer CDs, including online banks, credit unions, and traditional brick-and-mortar institutions. The interest rates and terms vary widely depending on where you open the account and what the current market conditions are.

Key Takeaways

  • American Express Bank does not offer CDs as a savings product.
  • You can open a CD at most other banks, credit unions, and online financial institutions.
  • If you have money with American Express, you can move it to another bank to purchase a CD.
  • CD interest rates change based on market conditions and the bank you choose, so comparing options across different institutions makes sense.

What American Express Bank does offer instead

American Express Bank offers a savings account called the American Express Personal Savings Account. This account earns interest on your balance, though the rate is typically lower than what you would earn in a CD. The savings account has no monthly fees and no minimum balance requirement, which makes it accessible to most people.

The trade-off is flexibility versus rate. With a savings account, you can withdraw your money whenever you need it without penalty. With a CD, your money is locked in for the term you choose, but you earn a higher interest rate in exchange for that commitment. If you need your CD money before the term ends, most banks charge an early withdrawal penalty that reduces your earnings.

Where to open a CD if you want one

You have several options for opening a CD. Online banks often offer higher interest rates than traditional banks because they have lower overhead costs. Credit unions, which are member-owned financial institutions, sometimes offer competitive CD rates to their members. Traditional banks with physical branches also offer CDs, though their rates may be lower than online options.

When you compare CDs across different banks, look at three things: the interest rate, the term length, and any penalties for early withdrawal. A longer term usually means a higher rate, but your money will be locked in for that entire period. Some banks offer CDs with terms as short as three months or as long as ten years.

How to move money from American Express to another bank

If you have money in an American Express savings account and want to open a CD elsewhere, you can transfer it to another bank. Log into your American Express account online or call their customer service number. You can request an external transfer to a bank account at another institution, or you can withdraw the money and deposit it yourself.

External transfers usually take one to three business days. If you withdraw cash, you can deposit it at your new bank right away, though some banks require you to deposit funds within a certain timeframe. Keep in mind that if you withdraw a large amount of cash, the bank may ask questions as part of standard anti-money-laundering procedures — this is normal and not a sign of a problem.

Why someone might choose a CD over American Express savings

A CD makes sense if you have money you will not need for a set period and you want to lock in a higher interest rate. If interest rates are rising, locking in a rate today protects you from the risk that rates will fall later. If you have a specific goal — like saving for a car down payment in two years — a two-year CD lets you know exactly how much you will have at the end.

American Express savings makes more sense if you want flexibility. You might keep some money in an American Express savings account for emergencies while putting other money into a CD for a goal that is further away. Many people use both: a savings account for money they might need soon, and CDs for money they can afford to set aside.

Understanding CD terms and interest rates

When you open a CD, you choose a term — the length of time your money stays in the account. Common terms are three months, six months, one year, two years, three years, and five years. The longer the term, the higher the interest rate usually is, because the bank gets to use your money for longer.

Interest rates on CDs change based on what the Federal Reserve does with its benchmark interest rate. When the Fed raises rates, new CDs offer higher rates. When the Fed lowers rates, new CDs offer lower rates. The rate you lock in when you open your CD stays the same for the entire term, even if market rates change. This is why timing matters — if you think rates might fall, locking in a rate now protects you.

What happens when a CD matures

When your CD term ends, the bank will notify you that it has matured. At that point, you have choices. You can withdraw the money, open a new CD at the same bank, or move the money to another bank. Most banks give you a grace period — usually seven to ten days — to decide what to do before they automatically renew the CD for another term at the current rate.

If you do nothing during the grace period, the bank will renew your CD automatically, often at a lower rate than you had before. To avoid this, contact the bank before maturity and tell them what you want to do. Some people set a calendar reminder a week before their CD matures so they do not miss the window to make a choice.

Frequently Asked Questions

Can I move money from American Express to a CD at another bank?

Yes. You can transfer money from your American Express savings account to another bank using an external transfer, or you can withdraw it and deposit it yourself. The transfer usually takes one to three business days if you use the external transfer option.

What is the difference between a CD and a savings account?

A savings account lets you withdraw money anytime without penalty, but earns a lower interest rate. A CD locks your money in for a set term and earns a higher rate, but charges a penalty if you withdraw early. American Express offers savings accounts but not CDs.

Do I lose money if I withdraw from a CD early?

You do not lose your original deposit, but you pay an early withdrawal penalty that reduces the interest you earned. The penalty varies by bank and term length — some banks charge three months of interest, others charge more. Always ask what the penalty is before you open a CD.

Will my CD rate stay the same if interest rates change?

Yes. Once you open a CD, your interest rate is locked in for the entire term, even if market rates go up or down. This is why some people open CDs when they think rates might fall — they lock in a higher rate before it drops.

What happens to my money when a CD matures?

The bank will contact you and give you a grace period — usually seven to ten days — to decide what to do. You can withdraw the money, open a new CD, or move it to another bank. If you do nothing, most banks automatically renew the CD at the current rate.