American Express Bank Savings and CD Accounts
Article Submitted By: BankMan
On June 1, 2009, American Express Bank launched its new online personal savings and CD products.
American Express offers competitive online and CD rates. Neither accounts have minimum balance requirements or monthly fees; both can be funded by ACH transfer or by check. The bank does not perform a hard credit inquiry.
With CDs, the rate does not lock until funds are received. Interest can be paid monthly, annually or at maturity for terms under one year. The early termination penalty is 3 months for terms less than 1 year, and 6 months for terms over one year. There is a grace period of 10 days at maturity before funds role over, and at maturity instructions can be taken over the phone.
Comments
Bill, January 19, 2011
Jennifer, Equating a Roth IRA (Individual RETIREMENT Account) to a savings account that can be used for anything is not a smart idea. IRAs are meant for retirement, nothing else. Plus your advice regarding IRAs is elementary at best. Also, giving non FDIC investment advice, especially investment advice dealing with SIPC investments requires licenses, and should not be undertaken by non-professional.
Jennifer, October 20, 2010
Hi Mary, Sorry for the delayed response. I ended up putting some of my money into a Roth IRA with Vanguard (Target Retirement Account). So far my YTD return is 7.31%. It's very easy to setup and you can use a graph based on your age to determine which target retirement account you should sign up for. You will have to have a minimum of $3000 investment with up to $5000 a year you can invest in a Roth. So, of course you have to earn at least $3000 and up depending on how much you invest (up to $5000)for the year (I'm going to set one up for my daughter soon). One thing that is nice about the Roth is if you really need that money that you invested, you can take it out at anytime without penalty (only what you invested, not what you have earned on the money). So, your money isn't totally locked down. Vanguard.com has a nice comparison between the Traditional IRA vs. Roth IRA on their website that will give you all the details.
Russ, October 04, 2010
They would not accept my check from the family trust and did not inform me. Just put it in the mail to send back. Been waiting over a week now. Other banks accept these checks why not Amex? Lost my business for sure.
Mary, August 15, 2010
Jennifer, where did you move your money to? Anything with a higher rate that is also not locked in for a long time?
Jennifer, June 25, 2010
Answer to "?newcustomer's" question. When I got my account in October of 2009, the rate was 1.85%. Within a month the rate dropped to 1.70%. Then (I don't remember when) the rate dropped to 1.30%. It has stayed at 1.30% for many months now (4-6 months). I hope it doesn't drop any lower. I have already moved some of my money out.
?newcustomer, April 29, 2010
can anyone tell me how often their rates have changed since the 1.85% since it is now advertising 1.3%? Have they went up and down or just constantly down? Also, what has been their lowest so far?
Richard., January 13, 2010
Does anyone know the max amount that can be deposited to qualify for the rate? thanks in advance.
Corky, January 02, 2010
After my disastrous experience with the sorry Discover Bank, I opened my account with Am Exp Bank and transferred all my money from Discover! Couldn't be happier, easy to set up and manage my accounts and I didn't have to call customer service at all. Website is easy to navigate and great user interface and experience. Would be nice if they develop an iPhone app to allow us to access our account as well.
Houston, November 24, 2009
I opened an account about 45 days ago at a rate of 1.85%. I just checked my account and they have already dropped their rate to 1.7%!! That's the reason I moved money to AmEx because my other accounts kept dropping. What a ridiculous game these banks keep playing.
William, November 13, 2009
I opened my savings account over the phone with a rep. By the end of the call, I had my account number and was able to log on to their website and see my account which was fully functional. I funded the account with a ACH from another bank. The welcome letter and signature card arrived a few days later. I have read on Fat Wallet that ACH transfers in or out take one day with Amex Bank. If so, that's really fast. One bad feature. Funds are held for six long days. That sucks! A rep told me if I ACH money to Amex Bank from another institution, there's no hold. I haven't been able to test this since my funds are still in hold.
Jennifer, October 16, 2009
I just signed up for the American Express High Yield Savings Account. So far everything is great. I signed up online and within a few days I received an email approval and I received a letter in the regular mail with the account number on it and other documentation. Once I had my account number, I was able to setup an account online. Then, I linked my checking account and they did 2 test credits/debits and I verified them online in my AMEX acct and was able to easily transfer my money from my linked checking account. They have everything you need to know about this account online and then they also mail you information. It's nice to be able to look up all of the details online, some banks are vague. AMEX is straight forward.
StupidOne, October 07, 2009
Can anyone share their experience with this bank? Thanks!
Quizzer, August 17, 2009
Whats the best option to move from Ally? -Discover -AmEx -Cap1 Thanks
