American Express Savings Account
American Express Savings Account
Many people consider American Express to be simply a credit card provider. While it is true that American Express established its reputation as a provider of credit cards, in recent years, this financial institution has expanded its product line to include a high-yield savings account and a checking account.
The American Express High Yield Savings Account is a solid choice for those looking for good returns if you’re willing to be limited on how you can withdraw your account.
With interest compounded daily and credited to your account monthly, you can maximize your returns and make the most of your savings fund. Best of all, you’re not tying up your funds, as you can make up to nine withdrawals per month.
So, if you have a financial emergency and need money, you can practically clear out your account, but you’ll still earn the full rate on your remaining balance.
What Does The Amex High-Yield Savings Account Offer?
Here are the main benefits and features to know when opening an Amex savings account:
- Impressive Rate: The first and most obvious feature of the American Express High Yield savings account is that it offers an impressive rate. As of January 2023, this account offers one of the highest rates on the market. If you are ready to lock your money for 12 months, there are better rates on Amex CDs.
- No Minimum Deposit Requirement: Unlike many banks, American Express does not have a minimum deposit requirement. This means that you can open your account with as little as just one dollar, making the account accessible for anyone.
- No Monthly Balance Requirements: You don’t need to maintain a specific balance to qualify for the high APY. This means that if you need to practically empty the account for a financial emergency, you can still earn the same rate for your remaining balance as you build it back up again.
- No Maintenance Fees: You don’t need to worry about paying monthly maintenance fees or needing to meet waiver criteria to avoid eating into your savings balance.
- Ease of Use: American Express makes it easy to set up and use your new account. You can open a savings account in a matter of minutes and Amex allows you to link multiple accounts, so you can quickly move money between them.
- Access to 24/7 Support: American Express has a 24/7 customer support helpline, so if you have a query or concern about your account, you can speak to a member of the American Express team at any time.
- FDIC Insurance: American Express is an FDIC member, which means that you can enjoy the same protections as you would get with a traditional bank savings account. You’ll have FDIC coverage for balances of up to $250,000 per depositor should the financial institution fail.
What Are The Drawbacks?
While there are many benefits, it's important to consider the limitations of the account:
- No ATM Access: The American Express High Yield Savings Account is not designed for everyday spending, so you’ll not receive an ATM or debit card with this account. If you need physical cash, you’ll need to transfer the funds into another account and then make a withdrawal.
- Slow Processing Times: When you transfer funds into your account, it can take approximately two business days for the payment to be processed and appear in your account. When transferring funds out of your account, it can take a little longer. This means that if you need cash, you could be waiting for up to five business days for your funds.
- No Mobile Deposits: This is quite unusual for an online bank account, as many have an app that allows you to deposit funds or checks directly into your account. However, this is not the case with American Express, so you’ll need to use a third-party bank account to transfer the required funds into your new American Express savings account.
- No In-Person Support: While there is 24/7 phone support, if you prefer to deal face to face, this is not an option with American Express. However, this is not unusual with online or digital accounts.
Amex Savings vs Discover Savings
Since American Express and Discover are both leading credit card brands, it is natural to assume that the high yield savings accounts from these financial institutions would be the same.
However, while there are some similarities, there are a few key differences which may influence which is the better option for you.
As of March 2023, both accounts offer the same rate.
Both accounts don’t impose a monthly maintenance fee, so you don’t need to worry about meeting waiver criteria or having a fee reduce your savings account balance.
Both accounts don’t have any minimum initial deposit or minimum balance requirements to open or maintain your account.
Both American Express and Discover offer customers access to phone support 24/7.
Since both accounts are high yield savings accounts, there is a maximum number of withdrawals that you can make from your account in any month.
However, while the Discover account is capped at six withdrawals, American Express allows nine per month.
The Discover app features mobile check deposit, so you can directly deposit checks into your savings account.
Although American Express does not provide an ATM card with its account, if you have a Discover checking account, it is possible to have an ATM card for your account and withdraw money from savings.
Amex Savings vs Marcus Savings
Both American Express and Marcus offer high yield savings accounts, but again, there are similarities and differences.
As of March 2023, American Express and Marcus have the same rate for their high yield savings accounts.
Neither account has a monthly maintenance fee to worry about.
There are no minimum initial deposit or minimum balance requirements for either account.
Both American Express and Marcus offer 24/7 phone support.
While American Express transfers can take several business days, Marcus offers same day transfers for up to $100,000.
Marcus also has a feature that allows you to start earning interest from the moment you initiate a transfer from any of your linked bank accounts.
If you have a check that you want to deposit into your savings account, Marcus allows customers to mail it in and it will be applied to your account.
However, if you’re an American Express customer, you’ll need to pay the check into another account and then transfer the funds into your Amex account once the check clears.
How to Deposit and Withdraw Money From Amex Savings
Since American Express has no physical branches, you will need to consider alternative methods to deposit or withdraw funds from your high yield savings account.
There are several ways to deposit funds into your account:
- Wire Transfer
- Electronic Bank Transfer
- Recurring Transfers
You can initiate your transfer online or using the phone helpline. However, your request is after 7pm ET, the transfer is considered to be initiated on the following business day.
There is also a mandatory holding period, so funds will not be included in your available balance until five business days have elapsed since you initiated the deposit.
There are two ways to withdraw funds from your Amex High Yield Savings Account:
- Wire transfers
- Electronic bank transfers
Bear in mind that after you initiate a withdrawal to your linked bank account, it will take up to three business days for the funds to appear.
Should I Open an Amex Savings Account?
With so many savings accounts in the marketplace, it can be tricky to decide which one is best for you. If you’re considering an American Express High Yield Savings Account, there are several questions to ask yourself to determine if you should open an account.
- Do You Have Checks? If you regularly receive checks that you would want to pay into your savings account, it can be a little convoluted when you have an Amex savings account. You’ll need to pay the checks into another account, wait for the check to clear and then initiate a transfer.
- Do You Need to Make Frequent Withdrawals? American Express allows up to nine withdrawals per month from this account. So, if you would need to make more than this number on a regular basis, this is not the account for you.
- Do You Need an ATM Card? If you like to withdraw cash from your savings, you’ll need to consider another savings account, as this account does not provide an ATM card.
- Do You Prefer In Person Support? American Express does not have physical branches, so if you prefer to deal with any queries or concerns face to face, you’ll need to consider other financial institutions. Just be aware that many banks with physical locations compensate for this additional cost by offering lower savings rates.
How to Open an Amex Savings Account?
If you want to open an American Express High Yield Savings Account, you can complete the process in just a few minutes with the following steps:
- Visit the American Express Website: You’ll need to browse the American Express Website and find the product page for the High Yield Savings Account. You can do this by clicking the “savings” tab on the top bar and then clicking “High Yield Savings.”
- Click “Apply Now”: On the product page, you will see an “Apply Now” button. When you click the button, you’ll be directed to the application to start the opening process.
- Enter Your Basic Details: Complete the basic form with some personal details including your full name, email, phone number and Social Security Number.
- Complete the Application Form: Once you enter your basic details, you’ll be redirected to the full application form. Complete all the mandatory fields.
- Answer Tax Questions: Amex will ask you whether you notified by the IRS that you're subject to backup withholding.
- Confirm Terms: Before you can submit your application, you’ll need to confirm that you have read the account terms and conditions.
- Await Confirmation: American Express will email you to confirm that your new account is active and provide your account details, so you can log in and link accounts to set up transfers.
Can I Open a Joint Amex Savings Account?
Yes, it is possible to open a joint Amex savings account. You’ll need to indicate that you want the account to have joint ownership on the initial application. You will then need to provide all the mandatory details for both parties, including full names, email addresses, dates of birth and Social Security Numbers.
Bear in mind that both parties will have full access to the account funds, regardless of who paid them in. Once the funds are in the account, either person can withdraw them.
This means that even if you are the only one who has put money into the account, American Express will allow the other person to withdraw them. So, you should only open a joint account with someone you trust.
How much can I withdraw from Amex Savings?
There are no limits for how much you can withdraw from your account. However, you are limited to a maximum of nine withdrawals or transfers out of your account per month.
Can I transfer my IRA to an Amex Savings account?
Yes, it is possible, but you should consider all the tax implications before you initiate a transfer.
How do you close Amex Savings?
You’ll need to call the customer helpline and the Amex customer support team can guide you through the closure process.
Can you direct deposit into an Amex savings account?
Yes, you will have a routing number for your account and you can give these to your employer to direct deposit your salary.
Does Amex offer an IRA savings account?
Yes American Express has IRA savings accounts and plans
Does Amex offer a health savings account?
Yes, Amex does offer a HSA.