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- American Express High Yield Savings Account Review
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This account matches the criteria we value most when picking the best online savings account. With a high annual percentage yield (APY) and no fees, the American Express® High Yield Savings Account will appeal to many savers. Our in-depth review will help you decide if it's the right tool to maximize your savings.
Rates as
of Feb. 15, 2021
| Offer | Our Score | APY | Best For | Next Steps |
|---|---|---|---|---|
American Express® High Yield Savings Account
Member, FDIC
|
Rating image, 5.0 out of 5 stars.
5.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
APY: 0.50% | Best For: High APY |
Full American Express® High Yield Savings Account review
Here are the pros and cons of opening an American Express® High Yield Savings Account:
Top perks
0.50% APY. When investing money in a high-yield savings account, APY is one of the most important factors. The American Express® High Yield Savings Account offers one of the higher APYs on the market.
Ease of use. You can set up and start using your American Express® High Yield Savings Account in minutes. You can also have multiple linked accounts and move money between them.
No monthly balance requirements. You don't need a minimum balance to open your account or avoid monthly fees. You will need at least $1 in your account to earn the APY. With no minimum balance requirements, you don't need to worry about having money trapped in your American Express® High Yield Savings Account.
No maintenance fees. As an online bank, American Express doesn't have the overhead costs of brick-and-mortar stores. As such, it can offer its High Yield Savings Account for free.
FDIC insured. American Express is an FDIC member. This means that, just as with any traditional bank account, you're covered for as much as $250,000 per depositor, per institution, in the event of bank failure.
What could be improved
ATM access. The biggest downside of the American Express® High Yield Savings Account is there's no ATM card, so you can't withdraw funds instantly from your ATM.
Processing time. While it is easy and free to move money back and forth between your American Express® High Yield Savings Account and linked bank accounts, it takes several days for deposits and withdrawals to process. In addition, you can't go to a local bank branch and get help with your account.
How to access your money
While American Express has no physical branches, you still have a wealth of options to access your money easily and quickly -- some of which are fee-free.
Deposit options
There are multiple ways to deposit funds into your American Express® High Yield Savings Account, including:
- Electronic bank transfer from a linked bank account
- Wire transfer
- Mailing a physical check
You can initiate transfers online or via phone 24/7, but if it's after 7 p.m. ET, American Express considers the transfer to have occurred on the next business day. You also have the choice of setting up a one-time transfer or recurring transfer. Recurring transfers make it easy to make regular contributions to your savings.
When you transfer funds, they won't be available immediately. Because of a mandatory holding period, money isn't added to your available balance until five business days after you initiate your deposit. Business days are Monday through Friday, not including holidays.
Withdrawal options
You can use the same methods to withdraw money as you would to deposit it:
- Electronic bank transfer
- Wire transfer
- Physical checks
It takes one to three days for the funds to show up in your linked bank account after you make a withdrawal. One of the biggest downsides of the American Express® High Yield Savings Account is that you can't access your money quickly. But you can work around this by planning ahead and arranging to transfer funds several days before you'll need the money.
Remember, because there's no minimum balance requirement, you can withdraw all the money in your account at any time without worrying about fees or account closure.
Online savings account comparison
The American Express® High Yield Savings Account is a solid pick, but it may not be suitable for everyone. We suggest comparing the savings account to a handful of other top picks.
Rates as of Feb. 15, 2021
The American Express High Yield Savings Account is right for you if:
If you want the highest possible returns on a savings account and you can plan ahead to deposit and withdraw funds, the American Express® High Yield Savings Account is a great choice. The absence of fees, ability to maintain multiple accounts, and lack of a minimum balance requirement provide a lot of flexibility. Not to mention the account's high APY: Your savings will earn the maximum interest possible without risk to your deposited funds.
If you think you'll miss out on having a local bank branch to visit or that you'll need immediate access to cash, you should look elsewhere. If a mobile app is important to you, you'll also need to consider another personal savings account.
About the Author
Christy Bieber is a full-time personal finance and legal writer with more than a decade of experience. She has a JD from UCLA as well as a degree in English, Media and Communications with a Certificate in Business Management from the University of Rochester. In addition to writing for The Ascent and The Motley Fool, her work has also been featured regularly on MSN Money, CNBC, and USA Today. She also ghost writes textbooks, serves as a subject matter expert for online course design, and is a former college instructor.
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