American Express National Bank’s Relationship Benefits
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.
Disadvantages Of The Amex High Yield Savings Account
If your main concern is having instant access to the funds in your savings account, the Amex High Yield Savings Account isnt a good choice for you. Since the account doesnt come with a debit card, theres no way to use money from the account to pay for items at a store, nor can you go to an ATM to get cash out of the account. And its a savings account, so checks arent an option either.
Once money is in the account, youll need to make a transfer back to an external account if you need the funds, and it will take at least a few days for the money to arrive. So if you expect to need access to funds immediately, youll be better served with another option.
Also, by law, withdrawals from savings accounts arent unlimited. With the Amex High Yield Savings Account, you can make up to nine withdrawals or transfers during each monthly statement cycle. After that, youre locked out until the next month, though you can always transfer the entire balance out of the account with any of your nine monthly transactions.
Its also important to remember that this is an online-only account, so there are no branches where you can go in and access your account or talk to a bank employee. Of course, thats why there are no fees and the interest rate on the Amex High Yield Savings Account is higher than typical savings accounts at physical banks. Maintaining those branches is a major expense.
How Do I Open An Account
The entire account opening process with American Express Bank can be completed online in minutes. You can begin by visit its website and clicking the big blue “Open an account” button.
To be eligible to apply, you’ll need to be at least 18 years of age. You’ll also need to provide a Social Security number or Individual Taxpayer Identification Number and a U.S home address during your application.
You May Like: Lightstream Boat Loan
About American Express Bank
Financial services giant American Express received permission from the Federal Reserve to become a bank holding company in 2008. One year later, the company, which already operated a small bank, introduced personal online accounts. Today, the bank still offers certificates of deposit and a high-yield savings account.American Express Bank is headquartered in Salt Lake City. Although it shares the same domain as the rest of the business, account holders log in using separate credentials from those used to access American Express credit card accounts.
Which Bank Is The Winner
With both banks offering similar products, we need to look a little more closely at which bank is better.
If youre looking for a more full service bank that allows you to have a savings account, current account and credit card as well as business account options, then Capital One is a better choice.
However, American Express does have a great savings account and plenty of card options, if you prefer to go with this well established brand.
|APY SavingsThe annual percentage yield is a percentage that represents the amount of money or interest earned on your savings account over the course of a year. The APY factored in compound interest. A savings calculator can help you quickly determine how much you’ll earn with a given APY.||1.00%|
|Checking FeeThe monthly fee on checking account||$0|
Capital One 360 is Capital One’s online banking division. This means that while both brands are owned by the same company, they are not the same bank.
Capital One 360 does not have the overhead of a traditional Capital One bank with physical branches because it is only available online. This means that if you don’t need to visit branches frequently, the Capital One 360 products may be more appealing.
American Express National Bank is an online bank that has no minimum balance requirements or monthly fees.
Also Check: Boa Overdraft Policy
Transfer To A Us Bank Checking Or Savings Account
If you have a checking or savings account with us, you can transfer money from your American Express card in a few ways:
- Log into online banking and select Transfers. Choose Get a cash advance and follow the steps given.
- Or, log into the mobile app and select Pay bills & transfer. Choose Transfer and follow the steps given.
Are There Other Ways To Save With American Express National Bank
You may be wondering whether you can open a money market account or certificate of deposit with American Express, in addition to a high-yield savings account.
While a money market account has its advantages, American Express National Bank doesnt offer them currently. You can, however, open a CD account online. CD terms are available from 18 to 60 months. The APY for CD accounts is tiered so that the longer your CD term, the higher your rate.
American Express offers flexibility when it comes to the minimum balances for CDs. You can open a CD with as little or as much money as you like, up to the $5-million-per-depositor cap.
Keep in mind that once your CD account is opened, you cant add to it. You can, however, create a CD ladder using different certificates of deposit with varying maturity dates.
In terms of fees, there are no monthly fees for CDs. However, you may pay a penalty if you withdraw money from your CD before it matures. This penalty means surrendering a percentage of the interest earned on CD savings.
Also Check: How Much Can I Overdraft My Td Bank Account
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. 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. You can also make up to nine withdrawals per month due to recently revised banking rules, whereas many other banks are stuck in the past with a six-withdrawal monthly limit.
What Do Regulators And Customers Say
Unfortunately, American Express doesnt receive a review from Trustpilot. It has a TrustScore of 3.1 out of 10, based on 225 customer reviews. Customers said that charge disputes were handled professionally but complained of long wait times to speak with customer service.
At the Consumer Financial Protection Bureau, a whopping 6,845 complaints were targeted at American Express credit cards. Only 60 complaints came in about Amexs savings account and CDs, most of which came from customers saying their accounts had been closed without requesting it.
Recommended Reading: Www.bankofamerica/duadebit
How Does American Express Bank Compare
If you’re looking for a one-stop-shop banking service, you’ll need to look elsewhere. American Express Bank doesn’t offer checking accounts, ATM access, or even a dedicated mobile app.
But if you’re just looking for a high-yield spot to park your cash reserves, Amex National Bank could be worth considering due to its competitive rates. Here’s a quick look at how it compares:
|READ THE REVIEW|
How Amex Savings Accounts Compare To Top
Youll earn a competitive rate with an American Express high-yield savings account, although a few banks offer even higher yields.
For instance, Vio Bank is offering one of the highest APYs in the nation. It requires a deposit of at least $100 to open an account, but it does not charge any monthly service fees.
Additionally, Citibank is currently offering a higher rate than American Express, though its only available in certain states and markets. Theres no minimum deposit required to open a high-yield savings account with Citi, but there are some monthly service fees associated with the account.
Before choosing a new bank to keep your savings, you should compare options and find the best rate with Bankrates list of the top online savings accounts.
Don’t Miss: Ibc Wire Transfer
Investment Banking : 1981
During the 1980s, American Express embarked on an effort to become a financial services supercompany, and made a number of acquisitions,creating an investment banking arm. In mid-1981 it purchased Sanford I. Weill‘s Shearson Loeb Rhoades, the second-largest securities firm in the United States to form Shearson/American Express.
Shearson Loeb Rhoades itself was the culmination of several mergers in the 1970s as Weill’s Hayden, Stone & Co. merged with Shearson, Hammill & Co. in 1974, to form Shearson Hayden Stone. Shearson Hayden Stone then merged with Loeb, Rhoades, Hornblower & Co. to form Shearson Loeb Rhoades in 1979. With capital totaling $250 million at the time of its acquisition, Shearson Loeb Rhoades trailed only Merrill Lynch as the securities industry’s largest brokerage firm.
After the purchase of Shearson, Weill was given the position of president of American Express in 1983. Weill grew increasingly unhappy with responsibilities within American Express and his conflicts with American Express’ CEO James D. Robinson III. Weill soon realized that he was not positioned to be named CEO and left in August 1985.
In 1984, American Express acquired the investment banking and trading firm Lehman Brothers Kuhn Loeb, and added it to the Shearson family, creating Shearson Lehman/American Express. It was Lehman’s CEO and former trader Lewis Glucksman who would next lead Shearson Lehman/American Express.
Can’t Accept Cash Or Check Deposits
We’ve already mentioned that Amex doesn’t have any checking accounts. It also doesn’t issue ATM cards for any of its savings products. This means that you won’t be able to withdraw or deposit cash into your American Express National Bank account.
It should also be noted that while the bank’s website is mobile-optimized, there is no dedicated mobile app. That means you won’t be able to deposit checks into your account either.
If you do want to deposit cash or checks into your savings accounts, you’ll need to deposit them into a different bank first and then transfer the money over via ACH. It’s a bit inconvenient but it could also be a non-issue if you don’t deal in cash very often.
Frequently Asked Questions About American Express National Bank
Still have questions about opening a savings account and/or CD with American Express Bank? Weve rounded up the answers to the questions our readers are most commonly asking about banking with Amex.
American Express National Bank is a solid choice for credit cards and high-yield savings, but a full-suite bank it is not. If you want a checking option with the same bank at which you open your savings, look elsewhere. But if you already have a checking account youre happy with, consider moving your savings over to Amex to take advantage of the 0.40% APY.
American Express Bank is insured up to $250,000 per depositor through the FDIC. Worried about the security of online savings accounts? Amex utilizes multi-factor authentication, constantly monitors for fraud, and employs Secure Socket Layer encryption for safe online banking.
American Express National Bank is owned by the same parent company as the Amex credit card. However, the accounts are separate youll log in on separate websites using unique login credentials.
In 2008, financial company American Express received the green light from the Federal Reserve to operate as a bank holding company. In the following year, American Express launched American Express Bank, which is headquartered in Salt Lake City, Utah.
American Express does not offer a debit card with its High Yield Savings feature.
Does American Express Require A Deposit
There is no minimum deposit requirement in American Express Bank. American Express Bank provides complete flexibility to its customers so that anyone can open an account with American Express Bank. Neither savings accounts nor CDs have minimum deposit requirements here. There is no monthly maintenance fee charged on any American Express bank account which is a good thing.
Recommended Reading: Ibc Bank Zelle Limit
Is It Worth It
American Express National Bank has one of the best online savings accounts right now. If you dont have a savings account, set one up today. The interest rate is compelling, and American Express is a trusted name thats big enough to provide a great online experience.
If you already have a savings account, check the interest rate, and decide whether a higher yield is worth the switch.
Commercial Cards And Services
In 2008, American Express acquired the Corporate Payment Services business of GE, which primarily focused on providing Purchasing Card solutions for large global clients. As part of the $1b+ transaction, American Express also added a new product, called V-Payment, to its product portfolio. V-Payment is unique in that it enables a tightly controlled, single-use card number for increased control.
As of July 2016, American Express offered several business, corporate and travel credit and charge cards and services and data and information services related to their use in the competitive markets for these cards.
The online “American Express @ Work” function gives corporations a site on which to apply for, cancel or suspend cards, monitor policy compliance and track expenses. The cardholder company can create and generate reports for a corporate expense account program, including analytics and data consolidation or integration. Reports can be tailored for various sized companies. Through a Standard Expense Reporting feature in its “Manage Your Card Account site”, American Express corporate cards provide cardholders access to pre-populated expense reports. The cardholder needs to annotate expenses and add out-of-pocket charges upon completion of which the report can be downloaded in electronic or paper format.
Recommended Reading: Bank Of America Safepass Limit
Gina Marte Wallethub Advisor
The credit unions and banks that offer American Express credit cards include Wells Fargo, U.S. Bank, USAA, Navy Federal and American Express itself, among others. Third-party-issued Amex cards arent all that common because American Express is both a card issuer and a card network. Still, American Express does partner with other companies to offer some credit cards, which is why its possible to find Amex cards issued by financial institutions other than American Express.
One of the most well-known, third-party-issued Amex cards is the Wells Fargo Propel American Express® card, which offers an initial bonus of 20,000 points and solid ongoing rewards. The U.S. Bank FlexPerks® Gold American Express® Card is a good choice as well. This card has an excellent rewards program, but it also has an annual fee of $85.
There are no American Express credit cards that are easy to get. They all require good credit or better. The USAA® Secured American Express® Card used to be the easiest American Express card to obtain as it was available to people with bad credit. But USAA® Secured American Express® Cardis no longer available to new applicants.read full answer
While American Express credit cards arent that easy to obtain, there are several other credit cards that are easy to get approved for.
Conversion To Bank Holding Company
On November 10, 2008, during the financial crisis of 20072008, the company won Federal Reserve System approval to convert to a bank holding company, making it eligible for government help under the Troubled Asset Relief Program. At that time, American Express had total consolidated assets of about $127 billion. In June 2009, $3.39 billion in TARP funds were repaid plus $74.4 million in dividend payments. In July 2009, the company ended its obligations under TARP by buying back $340 million in Treasury warrants.
Don’t Miss: Td Bank Overdraft Fees
Easy To Automate Savings
Generally speaking, its easy to set up an automated deposit from a checking account into a savings account. That said, they bury the secret to automation deep within their website. On the other hand, American Express emphasizes how to set up the automation.
They compare well to the other accounts listed on the best high yield savings account list.
American Express High Yield Savings Account Essentials
The American Express High Yield Savings Account is one of the better savings accounts offered online. In terms of what you can expect when you save money with American Express National Bank, heres a quick rundown of this accounts features:
- Earn a competitive APY on deposits
- No monthly fees
- Customer service is available 24/7 if you need help
You May Like: Banks Affiliated With Bank Of America
How American Express Personal Savings Works
American Express Personal Savings offers two types of savings vehicles, a savings account and certificates of deposit , and they are available only to individuals. American Express Personal Savings is an online-only bank without any physical bank branches to visit, but that is an issue only if you need cash, which is less and less common these days.
Essentially, American Express Personal Savings is a place to store your savings at a competitive interest rate with no bells and whistles.
You can open both the savings and CD accounts online by completing a short application. You can fund your new account via electronic transfer or by mailing in a paper check.
Once a new savings account is up and running, you can easily move funds in or out via electronic transfer. You can link any major United States bank account to an American Express Personal Savings account using its account and routing numbers. American Express Personal Savings does not support mobile check deposits at the moment. If you wish to deposit funds into your account via paper check, youll have to mail it in.
If you have any questions about your account, you can reach a customer service representative at American Express Personal Savings via phone 24/7. At the moment, there is no support through live chat on the website.