American Express does not offer traditional savings accounts
American Express Bank offers money market accounts and certificates of deposit (CDs), not savings accounts in the traditional sense. A money market account is a hybrid product — it works like a savings account but with some features of a checking account, including the ability to write checks or make transfers. A CD is a different product entirely: you deposit money for a fixed period (like six months or five years) and receive a set interest rate in return.
The distinction matters because it changes how you use the account and what you can do with your money. If you are looking for a place to park money you might need to access quickly and frequently, a money market account could work. If you are looking to lock away money you will not touch for months or years, a CD might be the better fit. Neither is a traditional savings account where you deposit, withdraw, and earn interest on whatever balance sits there.
Key Takeaways
- American Express Bank offers money market accounts and CDs, not savings accounts, so you need to understand which product matches how you plan to use your money.
- Money market accounts let you write checks and make transfers, but usually require a higher opening deposit than traditional savings accounts at other banks.
- CDs lock your money away for a set term in exchange for a fixed interest rate, and you pay a penalty if you withdraw before the term ends.
- Interest rates at American Express Bank change over time and depend on the account type and term, so comparing rates across banks before opening is important.
- American Express Bank is FDIC-insured, which means your deposits are protected up to $250,000 per account type, the same as at any other bank.
How American Express money market accounts work
An American Express money market account combines features you might recognize from a savings account with some checking account conveniences. You earn interest on your balance, but you can also write checks or make electronic transfers without closing the account. The trade-off is that most money market accounts require a higher minimum deposit to open — American Express typically requires $25,000 or more, depending on the specific product.
The account comes with a debit card and online access, so you can check your balance and move money whenever you need to. Interest rates on money market accounts are variable, meaning they change based on what the Federal Reserve does with interest rates. When the Fed raises rates, your rate may go up. When the Fed lowers rates, your rate may go down. American Express publishes current rates on their website, and you can compare them to rates at other banks before deciding.
Money market accounts make sense if you have a chunk of money you want to earn interest on, but you also want the flexibility to access it. They are less useful if you plan to make frequent small deposits or if you cannot meet the minimum opening balance.
How American Express CDs work
A CD is a commitment: you give the bank a sum of money for a specific length of time — anywhere from a few months to several years — and the bank pays you a fixed interest rate for that entire period. At the end of the term, you get your money back plus the interest earned. The interest rate does not change, even if the Fed raises or lowers rates during your CD term.
The catch is that if you need the money before the term ends, you pay an early withdrawal penalty. The penalty amount varies by CD term — a longer-term CD usually has a larger penalty. American Express publishes the penalty terms for each CD product on their website, so you can see exactly what you would lose if you withdrew early. This is why CDs work best for money you are confident you will not need for the stated period.
CDs can be useful if you have money sitting in a low-interest savings account and you know you will not need it for a year or two. You lock in a rate that is usually higher than what a money market account offers, and you do not have to think about rate changes. The downside is that your money is not accessible without a penalty.
Comparing American Express rates to other banks
Interest rates change frequently, so the rate American Express offers today may not be the same next month. The same is true at every other bank. Before opening any account, check the current rates at American Express and at least two or three other banks — online banks like Marcus, Ally, or Capital One 360 often publish rates prominently on their websites, as do traditional banks like Chase or Bank of America.
For money market accounts, compare not just the interest rate but also the minimum deposit required and any monthly fees. Some banks charge a monthly maintenance fee if your balance drops below a certain level; others do not. For CDs, compare the rate for the specific term you are interested in — a one-year CD at one bank might pay more than a one-year CD at another, but the two-year rates might be reversed.
Rate shopping takes 15 minutes and can save you hundreds of dollars in interest over a year or two. Write down the rates you find, note the minimum deposit and any fees, and then decide which account structure and rate combination makes sense for your situation.
Who American Express Bank accounts are built for
American Express Bank accounts work best for people who have a substantial amount of money to deposit — at least $25,000 — and who want to earn interest without the complexity of investment accounts. If you have $100,000 or more sitting in a regular savings account earning almost nothing, moving some of it to an American Express money market account or CD could meaningfully increase the interest you earn.
They are less suitable if you are building an emergency fund and need to make frequent deposits, or if you have less than $25,000 to work with. In those cases, a traditional savings account at a bank that does not require a high minimum — or an online savings account with a lower minimum — may serve you better. American Express is also not the right choice if you need to access your money frequently; the money market account helps with this, but a regular savings account gives you more flexibility.
FDIC insurance and account safety
American Express Bank is FDIC-insured, which means your deposits are protected by the Federal Deposit Insurance Corporation up to $250,000 per account type. This protection applies to money market accounts and CDs separately, so if you have $250,000 in a money market account and $250,000 in a CD, both are fully protected. This is the same protection you get at any other FDIC-insured bank.
FDIC insurance does not protect you from poor investment decisions or from locking money away in a CD and then needing it early. It protects you only if the bank fails — which is rare. Your money is safe in the account itself, and you do not need to worry about the bank disappearing with your deposits.
Frequently Asked Questions
Can I withdraw money from an American Express CD early?
Yes, but you will pay an early withdrawal penalty. The penalty amount depends on the CD term — longer terms usually have larger penalties. American Express publishes the specific penalty for each CD product, so check before you open the account if you think you might need the money sooner.
What is the minimum deposit for an American Express money market account?
American Express typically requires $25,000 to open a money market account, though this can vary by product. Check their website or call to confirm the current minimum before you explore, as requirements can change.
How often do interest rates change on American Express accounts?
Money market account rates change whenever American Express decides to adjust them, which can happen monthly or less frequently. CD rates are fixed for the entire term, so they do not change. Check American Express's website regularly if you want to track rate changes.
Is American Express Bank the same as American Express credit cards?
No. American Express Bank is a separate division that offers deposit accounts like money market accounts and CDs. American Express credit cards are a different product. You can have one without the other, though some customers use both.
Should I move all my savings to an American Express account?
Not necessarily. Consider your goals: if you need quick access to money for emergencies, keep some in a traditional savings account. If you have money you will not touch for years, a CD might make sense. If you have a large sum earning almost nothing, a money market account could help. Most people benefit from splitting savings across different account types based on when they will need the money.