This American Express Personal Savings online savings account review considers the pros and cons of opening this high-yield savings account. In comparison to a robust field of online savings account competitors, American Express Personal Savings’ initial current yield is worth taking a look at.
However, other online savings accounts offer higher APY rates along with additional features and benefits. For instance, American Express Personal Savings doesn’t include a mobile bank application for remote deposits. Like the account name says, the American Express Personal Savings account is dedicated to individual or family savings. You can’t open a business or trust account.
American Express Bank and Online Savings Accounts
The American Express Personal Savings account isn’t linked to any American Express card or other financial product but Amex cardholders like the strength associated with the American Express Bank. American Express bank offers customers a basic online savings account and certificates of deposit (CDs). According to user ratings online, most customers who choose the American Express Personal Savings online savings account want to focus on increasing their savings.
American Express Personal Savings Basics
If you’re interested in saving more money and want to purposefully limit some access to your savings, the American Express Personal Savings online savings account can help you reach savings goals. The American Express Personal Savings online savings account has no monthly fee and keeping a minimum balance in the account isn’t required. Fees aren’t assessed to withdraw money. It’s possible to link other bank accounts to the online savings account
Unlike Ally Bank or Capital One 360 online savings accounts, savers who choose the American Express Personal Savings online savings account don’t want an ATM card or checks to facilitate withdrawals. Most people who say like the account want to keep their funds in a high APY account for an emergency or to reach a specific financial goal.
The American Express Personal Savings online savings account offers a consistently high introductory APY. Some account holder reviewers say that the introductory rate declines over time. It’s important to note that all savings rates have declined in concert with bond market yields over the past few years. Savings rates rise and fall according to the current interest rate environment.
American Express Personal Savings Application
It’s necessary to apply for a personal savings account with American Express. The application process is relatively simple. You must be a citizen of the United States or a resident alien holding a valid Social Security number/Taxpayer Identification Number. Your home address must be in the United States. You may be asked to provide a valid state identification card or driver’s license as part of the identification process.
The American Express Personal Savings online savings account is to be used for individual/personal or family/household purposes. You can’t open a trust account, individual retirement account (IRA), or business savings account.
However, the American Express Personal Savings online savings account offers Payable on Death (POD) savings accounts. The funds in this type of account are provided to the account holder’s beneficiaries at death without the need to go through probate. Arranging a POD account is also relatively simple. Open a personal or joint account and add beneficiaries to the account with American Express Bank’s Beneficiary Designation form.
Once you’ve successfully opened an American Express Personal Savings online savings account, you can fund it. There’s no minimum deposit requirement and a maximum deposit of USD 5 million. All deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to USD 250,000 per depositor.
American Express Personal Savings Security
American Express Bank says that all depositors are protected against unauthorized theft and loss. The liability to you is just USD 50 if someone else accesses your money without your approval.
You may use a smartphone or computer to access the American Express Personal Savings online savings account. It’s possible to communicate with customer service by SMS text, email, or phone call. Your personal information isn’t shared with other divisions of American Express.
American Express Personal Savings Online Savings Account Transfers
Because American Express Bank doesn’t offer a checking account plus savings account option, most account holders link external bank accounts to the online savings account. American Express Bank says it takes from one to three business days from the time you initiate a transfer request to complete the transaction.
Some account holder reviews say that, in some situations, a transfer between banks can take longer than three business days. Although the money in your American Express Personal Savings online savings account is yours, you can’t initiate an instant withdrawal via ATM or check.
American Express Personal Savings Online Savings Deposits
You can arrange direct deposits, such as from your employer’s payroll department, to the online savings account. You can also automate transfers from other banks you use to the online savings account.
It’s possible to deposit paper checks to your online savings account by mail. You can link a bank account with the online savings account by drawing a personal check as well.
American Express Bank states that they accept checks at their discretion. They don’t accepted money orders, multiple-endorsed checks, travelers’ checks, counter checks, or starter checks.
If you’d like to increase the rate of return on your savings account funds, American Express Bank also offers an online certificate of deposit (CD) account.
American Express Online Certificate of Deposit Account
American Express Bank offers fixed interest CDs and seven maturity terms. Early withdrawal penalties apply if money is withdrawn before the CD matures:
- Offered CD terms include six, 12, 18, 24, 36, 48, and 60 months.
- Once you decide on the CD term, your APY is fixed. American Express Bank dos allow you with the option to add money to your CD in the first 10 calendar day grace period.
- When your CD matures, it will automatically rollover to a new CD unless you notify American Express at least 10 days beforehand.
In comparison to a fixed-term CD, American Express Personal Savings online savings account holders can make up to six withdrawals from the account per statement cycle without incurring fees or penalties.
American Express Personal Savings Online Savings Account Review
This American Express Personal Savings online savings account review is largely positive. The decision to save more money is always a good idea. This online savings account doesn’t provide easy withdrawal access, such as by personal check or ATMs. If you’re interested in establishing a savings account for the long-term , the American Express Personal Savings online savings account might work for you.