American Express National Bank Review: High Rates and Low Fees

You might be familiar with American Express credit cards, but not everyone knows about its FDIC-insured banking products. While its lineup isn't as robust as some other banks' products, it offers competitive rates on savings and CD accounts. Check out our American Express National Bank review (Member FDIC) for a full overview of its products so you can decide if it's the right fit for you.

American Express® High Yield Savings Account

The American Express® High Yield Savings Account is a great savings vehicle for several reasons. First, it offers one of the highest interest rates we've seen. Second, you're forced to use it as a secondary bank account since American Express National Bank does not offer a checking account.

That might be inconvenient if you want to keep everything in-house and simplify your finances, but it also has several upsides. Parking your savings at a separate bank can help remove the temptation to spend your money too soon. And when you do need your cash, transfers are relatively quick.

American Express National Bank CD

The American Express National Bank CD offers decent interest rates and doesn't have a minimum deposit requirement. While it doesn't offer the best CD rates in the industry, this is a solid pick for individuals who cannot meet the high minimum deposit requirements of other banks. American Express also offers a variety of terms, which is good for CD laddering. Interest compounds daily and is paid out monthly. Like most CD accounts, the American Express National Bank CD charges a penalty if you decide to take funds out of your CD before the maturity date.

American Express National Bank checking accounts

American Express Rewards Checking

The American Express Rewards Checking account has no fees, offers a 1.00% annual percentage yield (APY), and earns debit card rewards. However, only those who have had an Amex card for at least three months are eligible.

There is no fee to open the account, no monthly fees, and no minimum balance requirements, which is a plus. However, American Express Rewards Checking accounts do not currently provide services for outgoing wire transfers, overdraft protection, or online bill payment.

American Express as a whole is known for excellent customer service. In 2021, J.D. Power ranked American Express first in customer satisfaction for credit card customer service. Though J.D. Power didn't speak to American Express National Bank's products, it's reasonable to believe these same values define American Express National Bank, since it's run by the same company. Additionally, American Express National Bank services are consistently rated highly by customers online -- a major compliment. Customers are generally more likely to write reviews for negative experiences, so positive reviews are a strong indicator of excellent service. Though there is not an abundance of information on American Express National Bank's customer service, the little that is available points toward an excellent customer service experience.

Big banks will often try to sweeten the deal by bumping up your rate, lowering certain fees, or offering other perks if you use their other products. American Express certainly has the potential to do this, given that it's one of the biggest credit card issuers in the country.

However, American Express National Bank doesn't offer any relationship benefits -- instead, everyone gets the same great rates. Realistically, it only has a few low- or no-fee offerings on its banking side, so there's not much of a carrot it can try to tempt you with.

Ally Bank

If you're looking for a more streamlined solution and want to keep all of your bank accounts in the same place, Ally Bank is a good online option. It consistently offers higher rates than many of its competitors we've reviewed and has many different types of accounts to choose from -- including investing and retirement accounts.

Discover® Bank

Discover® Bank is another credit-card-issuer-turned-bank, and it also offers great rates on its accounts. And while it doesn't have a traditional interest-bearing checking account, it does have a cash back checking account that gives you a percentage of cash back each time you swipe your debit card. This could be another good option if you want to keep all of your banking accounts together.

American Express National Bank isn't a good option for everyone, but if you fit one of these profiles, it's worth adding to your shortlist:

• You want to earn a high rate on your savings.
• You want to separate your savings from your everyday bank account.
• You don't have enough money saved up for the high minimum opening deposit requirements at other banks.

Our bank and credit union methodology

Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

Learn more about how The Motley Fool Ascent rates bank accounts.