American Express does offer high yield savings accounts through American Express Bank

American Express Bank offers a high yield savings account called the American Express Personal Savings Account. This is a deposit account held directly with American Express Bank, not through a third party. The account earns interest on the money you deposit, and that interest rate is typically higher than what you would find at a traditional brick-and-mortar bank.

The account is online-only, which means you manage it through a website or mobile app rather than visiting a physical branch. Because American Express does not operate branch locations, they can offer higher interest rates — they save money by not maintaining buildings and staff, and they pass some of that savings to you through better rates.

This account is separate from an American Express credit card. You do not need a credit card with American Express to open a savings account with them, though many people who use American Express credit cards also use their savings products.

Key Takeaways

  • American Express Bank offers a high yield savings account that you manage entirely online through their website or app.
  • The interest rate on this account is typically higher than rates at traditional banks, though the exact rate changes over time and depends on market conditions.
  • Your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account holder, the same protection that applies at any bank.
  • You can transfer money between your American Express savings account and an external bank account, though transfers may take one to three business days.
  • There is no monthly maintenance fee, and you can withdraw money whenever you need it without penalty.

How the interest rate works

The interest rate on an American Express savings account is not fixed — it changes based on what the Federal Reserve does with its benchmark interest rate. When the Federal Reserve raises rates, American Express typically raises the rate on their savings account. When the Federal Reserve lowers rates, the rate on the account goes down as well.

American Express publishes the current rate on their website, and you can see it before you open an account. The rate you earn is the same whether you have $100 or $100,000 in the account — there are no tiered rates that pay more for larger balances.

Interest is deposited into your account monthly. If you have $10,000 in the account earning 4.00% annually, you would earn roughly $33 per month (though the exact amount depends on the number of days in that month and how the interest compounds).

FDIC insurance and account safety

Money you deposit into an American Express savings account is protected by FDIC insurance up to $250,000. This means if American Express Bank fails, the federal government guarantees you will get your money back up to that limit. This protection is the same at any bank in the United States.

If you have more than $250,000 to save, you could open multiple accounts — for example, one in your name alone and another in a joint account with a spouse — and each would be insured separately up to $250,000. The FDIC website has a calculator that shows you how your specific situation would be covered.

American Express Bank is a subsidiary of American Express Company and is regulated by the Office of the Comptroller of the Currency, a federal agency that oversees national banks.

How to move money in and out

You can transfer money from an external bank account (your checking account at another bank, for example) into your American Express savings account. You can also transfer money from the American Express account back out to another bank. These transfers happen through the Automated Clearing House (ACH), a system that moves money between banks electronically.

ACH transfers typically take one to three business days. If you transfer money on a Friday evening, it may not arrive until Tuesday. American Express does not charge a fee for these transfers, though your other bank might charge you for sending money out.

You cannot deposit cash or checks directly into an American Express savings account because there are no physical branches. All deposits must come from another bank account you own.

Comparing American Express to other online banks

American Express is one of several online banks that offer high yield savings accounts. Other online banks include Marcus by Goldman Sachs, Ally Bank, and Discover Bank. These accounts all work similarly — they are online-only, they offer higher interest rates than traditional banks, and deposits are FDIC insured.

The main differences are the interest rate (which changes frequently and varies between banks), the user experience of the website or app, and whether the bank offers other products like money market accounts or certificates of deposit. You can compare current rates on the websites of each bank to see which one is paying the most at any given time.

Some people open accounts at multiple banks to spread their savings across different institutions, both to maximize FDIC coverage and to take advantage of different rates or features.

What you need to open an account

To open an American Express savings account, you will need to provide your Social Security number, date of birth, and address. American Express will verify this information and may check your credit, though opening a savings account does not affect your credit score the way explore for a credit card does.

You must be at least 18 years old and a U.S. resident. You will also need to link an external bank account so you can transfer money in to fund the account initially.

The entire process happens online and typically takes a few minutes. Once your account is open, you can begin transferring money and earning interest when ready.

Frequently Asked Questions

Can I use my American Express credit card to deposit money into the savings account?

No. You cannot transfer money directly from a credit card to a savings account. You would need to use a bank account (checking or savings) that you own at another bank. If you want to move money from your credit card, you would first need to pay off the card balance from your bank account, then transfer that money to American Express savings.

What happens if I need to withdraw money before a certain time period?

There is no penalty for withdrawing money from an American Express savings account at any time. You can take out money whenever you need it. The account is designed for saving, but you are not locked into keeping the money there for any minimum period.

Is the interest I earn taxable?

Yes. The interest you earn on a savings account is considered income and must be reported on your federal tax return. American Express will send you a Form 1099-INT at the end of the year showing how much interest you earned. You will owe income tax on that amount at your regular tax rate.

Can I set up automatic transfers to the savings account?

Yes. You can set up recurring transfers from your external bank account to your American Express savings account on a schedule you choose — weekly, monthly, or any other interval. This can help you save automatically without having to remember to transfer money manually each time.

What if American Express changes the interest rate?

American Express can change the interest rate on the savings account at any time. They typically notify account holders before a rate change takes effect. If the rate drops, your money is still safe and you can keep it in the account or transfer it elsewhere. You are not locked in to any particular rate.