American Express National Bank Review 2023
American Express National Bank Review 2023

You may know American Express for its American Express credit card, but did you know they have a banking division – American Express National Bank – that offers a competitive annual interest rate (APY) on bank accounts?

Founded in 1850, American Express is a financial services company headquartered in New York City. Their banking arm is an online-only bank headquartered in Utah with no physical branches. In addition to everyday bank accounts, the bank offers consumer and business banking products, such as personal loans to business checking accounts. All deposit accounts at the bank are insured by the Federal Deposit Insurance Corporation (FDIC).

American Express National Bank Products

American Express National Bank offers three types of deposit accounts: checking, savings, and certificates of deposit (CDs). They offer retirement savings accounts, including IRA CDs and IRA High Yield Savings Accounts.

Checking and Savings Accounts

rewards checking account

The Amex National Bank checking account is only available to existing Amex credit cardholders. You need to have held an American Express credit card for at least three months to be eligible for a checking account.

While many banks offer low or no interest on checking accounts, the American Express National Bank Checking Account offers a solid 1.00% APR with no monthly maintenance fees or minimum opening deposit requirements.

All rates and fees are as of August 21, 2023 and are subject to change.

  • Annualized annual interest rate: 1.00%
  • Minimum account opening deposit requirements: $0
  • Maintenance fees: $0
  • Overdraft Fees: $0
  • ATM overseas transaction fee: 2.7%
  • Replacement debit card: $0
  • Check supplies: Fees vary based on items ordered
  • Cashier’s check: $0
  • ACH transfers to or from your account: $0

Once you sign up for a checking account, you can fund the account by online transfer, direct deposit, or mobile check deposit, but not by cash deposit. The checking account also comes with a rewards debit card and check writing privileges.

You can use your rewards debit card to withdraw cash from ATMs and make purchases online and in-store. Earn 1 Membership Rewards point for every $2 in eligible debit card purchases. Membership rewards can be redeemed for flights, gift cards, statement credit and more. If you’re already an Amex cardholder, combining your debit card with your credit card can help you rack up points faster.

If you want to withdraw cash, Amex has a nationwide network of 37,000 MoneyPass® ATMs that you can use for free.However, if you choose to use an ATM, you do not Within their network, you may be billed by the ATM provider because Amex does not offer ATM reimbursement.

High Yield Savings Account

American Express National Bank’s high-yield savings account offers a generous annual interest rate and no fees or minimums.

All rates and fees are as of August 21, 2023 and are subject to change.

  • Annualized annual interest rate: 4.25%
  • Minimum opening deposit: $0
  • Maintenance fees: $0
  • Composite frequency: Interest is calculated daily and credited to your account monthly

You can open this savings account online with no minimum deposit. This account is an excellent option if you are just starting to save. Since high-yield savings accounts aren’t good for everyday spending, you won’t receive a checking or debit card.

When you want to withdraw funds, you must do so by electronic transfer. American Express National Bank currently has no monthly withdrawal limits on its high-yield savings accounts, so you can withdraw as often as you want.

American Express National Bank Savings Rate Comparison to Current Top Rates*.

Certificate of Deposit (CD)

American Express National Bank CD terms range from 12 months to 60 months. Their rates for one-year and 24-month terms are competitive, but rates for other terms are lackluster.

term length Average annual output
12 months 4.75%
18 months 1.00%
24 months 4.25%
36 months 1.15%
48 months 1.20%
60 months 3.00%
  • Minimum opening deposit: $0
  • Composite frequency: Interest is calculated daily and credited to your account monthly
  • Early withdrawal penalty: varies by term length
    • less than 12 months: 90 days interest
    • 12 months to under 48 months: 270 days interest
    • 48 months to less than 60 months: 365 days interest
    • 60 months and over: 540 days interest

American Express also offers the option to withdraw interest on CDs before maturity, but you will earn less overall interest if you draw down the funds early.

IRA Certificates of Deposit and IRA High Yield Savings Accounts

Amrican Express National Bank offers IRA CDs and high-yield savings accounts, both with no minimum deposit, for customers looking to take a more conservative approach to retirement investing.

All accounts classified as IRAs are subject to annual contribution limits set by the IRS.

IRA C.D term

term length Average annual output
12 months 4.75%
18 months 1.00%
24 months 4.25%
36 months 1.15%
48 months 1.20%
60 months 3.00%
  • Minimum opening deposit: $0
  • Composite frequency: Interest is calculated daily and credited to your account quarterly
  • Early withdrawal penalty: Depending on length of term, IRAs are also subject to IRS taxes and penalties
    • less than 12 months: 90 days interest
    • 12 months to under 48 months: 270 days interest
    • 48 months to less than 60 months: 365 days interest
    • 60 months and over: 540 days interest

IRA High Yield Savings Account

  • Annualized annual interest rate: 4.25%
  • Minimum opening deposit: $0
  • Maintenance fees: $0
  • Composite frequency: Interest is calculated daily and credited to your account quarterly

Other Services Offered by American Express National Bank

  • personal loan. Available to Amex cardholders only, loan amounts range from $3,500 to $40,000 at various interest rates. There are no application fees, origination fees, or prepayment penalties, but there are late fees.
  • Business checking account. This account is available to business owners and earns 1.30% APR on balances up to $500,000. There are no monthly maintenance fees.

American Express National Bank Platform and Customer Support

You can access your American Express account online or through apps available in the Google Play Store and Apple App Store. You can make mobile check deposits, digital transfers, and check account balances through the website or app.

Customer service for consumer savings and checking accounts is available by phone 24/7. For personal loans, help is available Monday through Friday, 9am-8pm ET.

Pros and Cons of American Express National Bank

If you want a high APR on a savings account or already have an Amex credit card, banking with American Express National Bank can help you earn more income from your savings.

An Amex card is required to open a checking account, so if you use Amex for your banking and credit card needs, you get even more benefits – your checking account will earn 1% APR, and pass eligible Earn Membership Rewards points on debit card purchases.

If you don’t have an Amex card, you can still sign up for their high-yield savings accounts and CDs with competitive rates.

advantage

  • There is no minimum opening deposit requirement. Open an account of any amount.
  • No fees are charged. Checking and savings accounts with no fees keep more cash in your pocket.
  • Competitive APYs. Interest rates on savings accounts, checking accounts, and certificates of deposit far exceed the national average.

shortcoming

  • No physical branches. If you prefer a local branch, you’ll want to explore other banks.
  • Cardholder Check Request. Since checking accounts are only open to Amex cardholders, many may not be eligible.

frequently asked questions

Does Amex have a bank?

Yes, American Express has a banking division called American Express National Bank.

Is Amex Bank Worth It?

It depends on what you need from the bank. American Express National Bank offers an above-average APR, low fees, and a few different bank accounts. However, it has no physical locations, and you must have an Amex credit card to qualify for its checking account.

How safe is American Express Bank?

American Express National Bank accepts FDIC insurance, so each deposit account is insured up to $250,000 in each ownership category.

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