We have all heard about AMEX in the past. The strength of the brand created by American Express is astounding. American Express is one of the oldest financial institutions that is still running.
While most of us might know American Express for their credit cards, they are also making moves in the online banking industry.
There are no checking accounts or money market accounts available at the moment. The service has been set up as a good way to invest in a popular and reputed name if you have a good amount of money kept aside.
It is also highly competitive with other online banks when it comes to interest rates as well as fee structure surrounding these accounts.
American Express National Bank History
Founded originally in 1850 in Buffalo, New York, American Express has gone on to be one of the pioneering institutions when it comes to providing a host of financial services to the population of the United States.
The American Express National Bank was established long after the foundation for American Express company was laid. The American Express National Bank was established in 2000 with its headquarters in Salt Lake City, Utah.
Types of Accounts
American Express High Yield Savings Account
American Express’ high yield savings account offers some really good interest rates. However, it caps ATM withdrawals to six a month.
This is actually not in the hands of American Express and is part of a federal law that most banks adhere to, therefore making the cap an industry standard.
The rates offered by American Express savings accounts are very competitive and require no minimum balance . The savings account does not offer debit cards, check books, or the ability to use cash freely after a certain point.
It is not meant for daily transactions and frequent usage.
There are no free online bill pay options and paying your American Express credit card bill through this account will also count as a transaction. But the rate that is offered is a good one if you are looking to keep a certain sum of money aside.
American Express Certificates of Deposit (CDs)
When it comes to certificates of deposit, American Express offers highly competitive rates while having no minimum requirement for deposits.
This is an advantage in comparison to some competitors who require a certain minimum amount to invest in higher return CDs. The term lengths range from 6 months to 5 years, just like most other competitors.
The penalty fees for the termination of CDs is as follows:
- For a term that is under 12 months in length, the penalty is counted on the withdrawn amount. It is 90 days simple interest of the withdrawn amount. The interest rate that will be applied is disclosed in the account-opening documents.
- For a term that is over 12 months, the penalty is counted by applying interest on the amount that has been withdrawn. 180 days simple interest on a withdrawn amount based on the rate mentioned in the account-opening documents is the penalty that has to be paid.
Amex Bank Alternatives
American Express National Bank is not for everyone. Here are three of their top competitors
- TIAA Bank – TIAA is a top brokerage account for 403b plans and they are also very competitive in the banking industry.
- CitBank – Time and time again CitBank comes in as one of the top banks for interest rates. They are always a good options if you are trying to get the best interest rates on your money.
- USAA- If you are a current or past member of the military or had a parent who served, USAA has a full offering of financial products to help you.
- Investing in a reputed and age-old banking institution like American Express always leaves the customer feeling safe and secure about their money.
- The interest rates are certainly competitive when it comes to the high yield savings account as well as the long-term CDs.
- There are no minimum balance requirements nor are there any additional fees when it comes to opening an account with American Express National Bank.
- American Express, as an institution, have been known for their customer service for many years and across businesses.
- American Express only offers high yield savings accounts and certificates of deposits (CDs). There is no checking account for its customers.
- There are no debit cards offered along with the savings account.
- There is limitation on transactions per month. Even transactions within the American Express locations are counted as a transaction.
- Even though it is an online bank for all practical purposes, there is no app that has been developed solely to monitor customer accounts.
- If you are looking to deposit a check in your American Express account, you might find it extremely difficult. Checks must be mailed to the American Express branch in order for you to deposit it, which is a system that is very old and has been superseded by other ways.
American Express Bank Bottom Line
American Express National Bank is a good idea for people who have a fair amount of money and are looking to invest in an institution with a high reputation and good customer service.
The high yield savings accounts have good interest rates and are best suited for those who are looking to put a chunk of their money aside.
American Express National Bank offers savings accounts with really good interest rates. If you’re looking to put some money aside and let it accumulate interest, AMEX is a good option for you.