American Express National Bank Review – Savings Account & CDs

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Whether you’re building an emergency fund or setting aside cash for a purchase in the near future, a high-yield savings account or certificate of deposit could meet your needs. Each is a viable option if you’re seeking a conservative investment that won’t tie up your money for a long period of time.

American Express National Bank (Member FDIC) is one banking services company that offers both accounts. It’s a great choice if you already have an existing Amex account or if you’re seeking an account without a minimum deposit requirement.

American Express National Bank has some of the best savings and CD rates of any online bank right now. Here’s what you need to know about its core account types and features.

Key Features of American Express National Bank

American Express National Bank is a fantastic institution for savers. It offers two main account types and a slew of value-added features that enhance the banking experience.

High-Yield Savings Account

American Express National Bank offers a high-yield savings account with a competitive yield — currently 4.35% Annual Percentage Yield (APY) as of December 14, 2023 — that consistently puts it in the upper echelon of all banks, including online banks known for great interest rates on cash savings.

There’s no monthly fee to keep this account open and no minimum balance requirements. You can open an account with a deposit of any size and don’t need to worry about clearing a specific balance threshold each month. And you can make up to 9 withdrawals from your savings account each month without triggering a penalty.

Certificates of Deposit

American Express National Bank offers CDs with terms ranging from 6 months to 5 years (60 months).

Yields rise along with terms, up to 4.75% Annual Percentage Yield (APY) on the 11-month CD. The 5-year CD currently yields 3.00%. Bear in mind that current rates are subject to change with prevailing benchmarks. Rates are current as of March 28, 2024.

Early Withdrawal Penalties for CDs

American Express National Bank charges an early withdrawal penalty if you need to withdraw CD principal before the term expires. This is standard practice in the online banking world but worth noting nonetheless.

Expect to pay the equivalent of 3 months’ interest on withdrawals from CDs with terms of 12 months or less. Expect to pay the equivalent of 6 months’ interest for CDs with terms greater than 12 months but less than 48 months and 12 months’ interest for CDs with terms of 48 months or greater.

Partial CD withdrawals aren’t allowed. If you want to withdraw funds from a CD held with American Express National Bank, you’ll need to take a full withdrawal and your account will be closed.

Savings and CD IRAs

American Express National Bank allows you to structure any of its savings products as an IRA. Rates and terms are identical to the non-IRA products.

You can choose from a traditional or Roth IRA. Consult a tax advisor for the best fit for your needs.

Customer Service

American Express National Bank’s customer service team is reachable 24/7 by phone. You can talk to a live human support agent no matter when you call in.

Transfers and Deposits

American Express National Bank makes it easy to transfer funds into and out of your savings account electronically. Set up automatic savings deposits to ensure you never miss a pay period.

Advantages of American Express National Bank

American Express National Bank has some clear advantages for savers, including total separation from Amex’s credit card arm and round-the-clock customer support.

• No Minimums or Monthly Fees ($0 Fees). American Express National Bank has a $0 minimum deposit to open. The ongoing minimum balance requirement is $0. It also doesn’t charge monthly fees ($0 fees) on any of its accounts.
• Great Savings and CD Yields. American Express National Bank consistently offers better savings and CD yields than traditional brick-and-mortar banks. Even among online banks, its rates are very competitive.
• IRA Savings Options. You can structure any of American Express National Bank’s savings products as a traditional or Roth IRA. Rates and terms are identical to the non-tax-advantaged versions, though you’ll want to consult a tax advisor for guidance around the tax implications of withdrawals.
• No American Express Credit Card Needed. You don’t need to worry about qualifying for an American Express credit card to open a savings account or CD with American Express National Bank.
• 24/7 Customer Support. You can get in touch with a real live human at American Express National Bank around the clock. Many competing online banks don’t offer round-the-clock phone support or even live chat support.

Disadvantages of American Express National Bank

American Express National Bank is great for people looking to save for the future, but it’s not a full-service financial institution, and it’s not totally fee-free. Consider these drawbacks before opening an account.

• No Checking Accounts. American Express National Bank is designed with savers in mind. That’s great if you don’t need access to your money on a daily basis, but don’t count on it to be your one-stop banking shop. You’ll need to look elsewhere for a checking account.
• Complicated Early Withdrawal Penalties. If you withdraw funds from your CD account before the maturity date, penalties apply, and understanding what exactly they entail can be confusing.
• No Brokerage Accounts. It’s increasingly common for online banks to offer self-directed brokerage accounts or robo-advisor platforms alongside traditional deposit accounts. American Express National Bank has yet to offer this feature and shows no indication that it’s around the corner.

How American Express National Bank Stacks Up

American Express National Bank is one of many online banks that focuses on savings products. Here’s how it stacks up against another institution known for competitive yields and friendly service: 

Final Word

If your funds are limited but you still want to start saving, an account with American Express National Bank may be right for you.

There’s plenty to like here, including the lack of an annual fee or minimum deposit. If you’re shooting for a full-service online or brick-and-mortar bank, there may be better options available, but Amex offers a rare combination of yield and service for savers.