American Express Bank is a division that handles deposit accounts and lending, separate from the credit card side
American Express Bank is the part of American Express that takes deposits and makes loans — the traditional banking side. Most people know American Express for credit cards, but the bank division offers savings accounts, money market accounts, certificates of deposit (CDs), and personal loans. It operates under federal banking rules and your deposits are insured by the Federal Deposit Insurance Corporation (FDIC), the same way deposits at any other bank are protected.
The bank side exists because American Express wanted to offer more than just credit products. If you have a savings account or CD with American Express Bank, you are dealing with this division, not the credit card company. The two operate separately, though they share the American Express name and you may manage both through the same online login if you have products from each.
Key Takeaways
- American Express Bank takes deposits and makes loans, while the credit card division issues credit cards — they are separate operations under one company.
- Deposits in American Express Bank accounts are FDIC-insured up to the standard limit, the same as at any other bank.
- The bank offers savings accounts, money market accounts, CDs, and personal loans, but does not have physical branches.
- American Express Bank is an online-only bank, so you manage accounts through their website or app rather than visiting a location.
How American Express Bank differs from the credit card side
The credit card division and the bank division serve different purposes. The credit card side issues cards, sets credit limits, and collects payments. The bank side takes your money when you deposit it, pays you interest on savings, and lends money out as personal loans. They use different rules, different systems, and different teams — though customers often do not notice the split because the company presents itself as one brand.
If you call American Express with a question about a savings account, you reach the bank division. If you call about a credit card, you reach the card division. In practice, the company routes you to the right place, but understanding the split helps explain why a savings account with American Express works differently from an American Express credit card.
What products American Express Bank offers
American Express Bank offers savings accounts that earn interest on the money you deposit. These are basic accounts with no monthly fees and no minimum balance requirement at most tiers. You can withdraw money whenever you need it, though savings accounts typically limit you to six withdrawals per month under federal rules (this rule has been relaxed in recent years, but the limit can still explore).
Money market accounts are a hybrid between a savings account and a checking account. They earn interest like savings accounts but come with a debit card and check-writing ability, so you can access your money more easily. The tradeoff is that money market accounts often require a higher opening deposit than savings accounts.
Certificates of deposit (CDs) are accounts where you agree to leave your money untouched for a set period — typically three months, six months, one year, or longer. In exchange, American Express Bank pays you a higher interest rate than you would earn in a savings account. If you withdraw the money before the term ends, you pay a penalty, usually a few months' worth of interest.
Personal loans are fixed-amount loans you borrow and repay over a set schedule, usually two to seven years. American Express Bank sets the interest rate based on your credit history and other factors. These loans are unsecured, meaning you do not pledge any asset as collateral — the bank is lending based on your promise to repay and your credit record.
Why American Express Bank is online-only
American Express Bank has no physical branches. You open accounts, deposit money, and manage your account entirely through their website or mobile app. This is a deliberate choice — online-only banks have lower overhead costs because they do not pay for building leases, tellers, or branch staff. They pass some of those savings to customers in the form of higher interest rates on savings and lower fees.
If you need to deposit a check, you can use mobile check deposit through the app — you photograph the front and back of the check and submit it. For cash deposits, you would need to use an ATM network that American Express Bank partners with, or transfer money from another bank account you own. This setup works well if you are comfortable managing money online, but it is not ideal if you prefer face-to-face banking.
FDIC insurance and how your money is protected
Money you deposit in an American Express Bank savings account, money market account, or CD is insured by the FDIC up to $250,000 per account type, per depositor, per bank. This means if American Express Bank failed tomorrow, the FDIC would reimburse you for your deposits up to that limit. The FDIC insurance is automatic — you do not have to do anything to set up it.
The $250,000 limit applies per account type, so you could have $250,000 in a savings account and another $250,000 in a money market account and both would be fully covered. If you have multiple savings accounts at American Express Bank, they count as one account type and share the $250,000 limit. Personal loans are not insured because they are not deposits — the bank owes you nothing if it fails.
How American Express Bank makes money and sets interest rates
American Express Bank makes money the same way all banks do: it pays you interest on deposits and charges you interest on loans. The difference between what it pays depositors and what it charges borrowers is the bank's profit. When interest rates in the economy are high, American Express Bank can pay higher rates on savings because it can charge higher rates on loans. When rates are low, savings rates drop too.
The rates American Express Bank offers change frequently — sometimes weekly — based on what is happening in the broader economy and what competitors are offering. You can check their current rates on their website, but the rate you see today may be different next week. If you lock in a CD, your rate stays the same for the full term, but savings and money market rates can change at any time.
Frequently Asked Questions
Is American Express Bank a real bank?
Yes. American Express Bank is a federally chartered bank regulated by the Office of the Comptroller of the Currency (OCC). Your deposits are FDIC-insured the same way they would be at any other bank. It is a real bank that happens to be owned by American Express and operated online only.
Can I use my American Express credit card at an American Express Bank ATM?
American Express Bank does not own ATMs. You can withdraw money from your American Express Bank account using ATMs in the network they partner with, but this is separate from your credit card. Check their website for the current ATM network partners.
What happens to my savings account if American Express goes out of business?
Your deposits are protected by FDIC insurance up to $250,000 per account type. If American Express Bank failed, the FDIC would step in and either transfer your account to another bank or reimburse you directly. Your money would not be lost.
Do I need an American Express credit card to open a bank account?
No. You can open a savings account, money market account, or CD with American Express Bank without having any American Express credit card. The bank and card divisions are separate, though they share the same company name.
Why is the interest rate on American Express Bank savings accounts higher than at other banks?
Interest rates vary based on the economy and what competitors offer. American Express Bank sometimes offers competitive rates because it has lower costs as an online-only bank. But rates change frequently, so comparing across banks at any given moment is the only way to know which is highest.