American Express has recently begun offering savings and CD products, only available online through their website. From what I can tell, they started offering banking products to qualify for bailout money.

They used to have a savings account called the “savings accelerator” which was connected to one of their credit cards. This new savings account is a standalone account that does not require a credit card.

American Express Savings Account

The current savings account rate is 1.85%. This is competitive with several top rates, including Ally bank’s savings rate. This savings account also features:

• Allows up to 5 links to external accounts
• Electronic transfers are limited to $250,000 per day
• Typical limit of 6 withdrawals per month as required by regulation
• Interest compounded daily and credited monthly
• Interest begins to accrue on the business day the deposit is received

American Express CDs

American Express’s banking division is also offering some American Express certificate of deposits. Their rates are as follows:

• 6 month CD – 1.00%
• 12 month CD – 1.75%
• 18 month CD – 2.05%
• 24 month CD – 2.35%
• 36 month CD – 2.75%
• 48 month CD – 2.90%
• 60 month CD – 3.25%

This CD features:

• Rate is fixed for initial term
• Rate doesn’t lock until they receive the funds
• Interest can be paid monthly or annually or at maturity for terms under one year
• Early withdrawal penalty equals 90 days of interest on amount withdrawn for terms 1-year and under, 180 days for terms over 1-year
• Grade period at maturity is 10 calendar days
• At maturity, you can request an ACH transfer of the money to the linked accoun
• At maturity, they accept instructions by phone

Both the American Express online savings account and the American Express CD have no minimum balances. American Express Bank is FDIC insured.