American Express Personal Savings Account
APY (%) | 1.60% Variable |
|---|---|
Minimum Deposit Amount | $0 |
Account Minimum | $0 |
Permitted Monthly Withdrawals | 6 |
Annual Fee | $0 |
FDIC Insured? | Yes |
Mobile App? | No |
Transfer Time | Deposits will be available within five business days. |
As of 5/24/2018
In an American Express® Personal Savings account, your money earns 1.60% variable APY. It’s currently one of the best rates you can earn from an online savings account. The account does not have a monthly fee and they don’t require a minimum deposit, which makes it an affordable account to open. You will have to fund your account within 60 days of applying, and the FDIC insures your deposits up to full legal limit.
How the American Express Personal Savings account works
The American Express savings account compounds daily at a variable 1.60% APY, and interest earned is credited to your account on your monthly cycle date. The rate is variable, so American Express can raise or lower the interest rate at any time without notice to you before or after the savings account is opened.
Account holders must fund the account within 60 days, which you can do by setting up a bank transfer or direct deposit to the savings account, as well as by sending a check.
What we like about the American Express Personal Savings account
- High interest rate The 1.60% variable APY is better than what you would earn putting your money in the accounts most brick-and-mortar banks offer. While there are higher rates to be had, American Express has a good offer.
- Automatic savings It’s easy to make saving automatic when you have an online savings account. With the American Express Personal Savings account, you can easily set up a recurring deposit to pull funds from an external savings or checking account. To make it even easier to resist touching your savings, you can even have a portion of your paycheck directly deposited to the account.
- Discourages spending With your money in an online account like the American Express Personal Savings account, you can only get your cash after making a transfer to an external checking account to which you have debit card access. The inconvenience makes it that much more difficult to spend your savings.
What we don’t like about the American Express Personal Savings account
- No ATM card Not having card access is great when you need to prevent yourself from spending your savings, but the hassle of setting up and making an ACH transfer from your online American Express Personal Savings account can be problematic in a pinch. (American Express says transfers will take one to three business days for funds to become available in your checking account.) If you’re worried about this, you can instead turn to an online bank like Synchrony Bank that makes it easier to access your savings by issuing an ATM card tied to your high yield savings account.
- Variable interest rate The annual yield rate American Express is offering on this savings account is high at 1.60%, but the bank can change that rate at any time for any reason, as the rate is variable. If you’re looking for a more predictable rate of return, consider a certificate of deposit.
- Limited withdrawals Because this is a high yield savings account, banks are limited by Federal Reserve Board Regulation D to a maximum of six withdrawals and/or transfers from your online savings account per statement cycle without penalty. With that in mind, before you decide how much you’ll put away each month, make sure it’s not more than you can afford to, so you aren’t repeatedly reaching into your savings.
How the American Express Personal Savings account compares
American Express vs Other Online Banks |
||||
|---|---|---|---|---|
 American Express |  Goldman Sachs Bank USA |  Synchrony Bank |  Barclays Bank |
|
APY | 1.60% | 1.70% | 1.65% | 1.65% |
Minimum Amount to Open | None | None | None | None |
Minimum Balance Amount | None | $1 | None | None |
Permitted Monthly Withdrawals | 6 | 6 | 6 | 6 |
Annual Fee | None | None | None | None |
FDIC Insured? | Yes | Yes | Yes | Yes |
Mobile App? | No | No | No | No |
As indicated earlier, the American Express Personal Savings account offer is strong, but how does it compare to other savings accounts?
Goldman Sachs Bank USA – 1.70% APY and $1 minimum balance
Goldman Sachs Bank USA currently offers an APY of 1.70% on their Marcus Savings Account. You don’t need to deposit a minimum amount to open the account, but you will need to have a minimum balance amount of $1 to earn the APY.
Interest on the Marcus Savings Account starts accruing the business day you deposit funds into the account. Goldman Sachs Bank USA doesn’t apply any service charges to their savings accounts.
Synchrony Bank – 1.65% APY and no minimum balance
With $0 to open the account, you can earn an annual yield of 1.65% on savings account balances through Synchrony Bank and there are no monthly fees.
Savings accounts through Synchrony interest is compounded daily and is credited to the account monthly. An ATM card is offered through this account and you can still easily transfer or deposit funds through an ACH transaction or online.
Barclays Bank – 1.65% APY and no minimum balance
With $0 to open the account, you can earn an annual yield of 1.65% on savings account balances through Barclays. While there are no monthly fees, an account that has a balance that is less than $1 for 180 days or more may be closed by Barclays. Savings accounts through Barlcays will start accruing interest the day your initial deposit posts to your account, and interest is compounded daily. While an ATM card is not offered through this account, you can easily transfer or deposit funds through an ACH transaction or online through your account.
Online banks vs. brick-and-mortar banks
Online banks have been having a moment not only because of the rise in mobile banking among consumers, but also because they can simply offer consumers more benefits because they don’t have to worry about as many overhead expenses as brick-and-mortar banks. An August 2017 study by DepositAccounts.com shows the annual percentage yield internet banks offer on savings accounts is more than four times what brick-and-mortar banks or credit unions offer. The same analysis shows annual percentage yields on internet bank savings accounts have surged 29 percent since January 2016.
Simply put, the main benefit of putting your money in an online savings account is your money does more for you. To show this, DepositAccounts provided an example, based on the average APYs in those savings categories: If a saver were to put $100,000 in a savings account and leave it alone for 10 years, they would earn $8,338.79 at an online bank versus $1,747.04 in a brick-and-mortar bank and $1,895.28 in a credit union, assuming a fixed APY.
The bottom line
Overall, the American Express Personal Savings Account is a solid online savings option. The interest rate they offer is high and the features of the account are comparable to other online banks’ savings accounts. While there are certain aspects of the Personal Savings account that could use improvement, other online banks present the same obstacles. As was mentioned earlier, the American Express Personal Savings account is one of the best options available.
CIT Bank recently launched a money market account with a 1.85% APY. You only need $100 to open the account and start earning the APY, and they don’t charge any monthly maintenance fees. If you appreciate the option to write checks with your money market account, or use a debit or ATM card to withdraw funds, this account may not be for you. You can fund the account with ACH, mobile check deposit, or by mailing a check directly to the bank. Accessing funds can be easily done through their online banking platform or mobile banking app. Just keep in mind that due to federal regulations, you’re not able to conduct more than six transactions in a statement cycle. CIT Bank will charge a $10 fee for each additional transaction. While CIT is a thriving bank, you can be assured that your funds are protected by the FDIC up to the legal limit.
You may think of credit cards when you think of Capital One, but don’t overlook their deposit accounts. While they don’t require a minimum deposit amount to open the account, you will have to maintain a balance of $10,000 or more to earn their 1.60% APY. If your balance is less than that, you’ll earn an APY of 0.85%. They don’t impose any monthly fees, and while they don’t offer checks, they do provide you with an ATM card that you can use to withdraw up to $1,000 per day. You can make an unlimited amount of withdrawals from an ATM per month, but remember that you’re limited to making only six transfers per cycle due to Federal Law. However, Capital One will close the account if you go over six transfers three times within a 12-month period. This is an online-only account, so you can’t go to a branch to open or maintain the account. Fortunately, they make banking-on-the-go easy with their Mobile Banking app.
When you think of Nationwide, you probably think about insurance. However, they offer more than just auto and home insurance. With $1,000 to open their money market account, you can automatically earn an APY (Annual Percentage Yield) of 1.15%. However, in order to earn their 1.55% APY, you’ll have to have a balance of $10,000 or more. They do charge a monthly maintenance fee of $8, but will waive the fee if you maintain a minimum of $1,000 daily. They do have check-writing capabilities as well as an ATM card. The first two ATM transaction made from a non-Nationwide Bank ATM is free per statement cycle, but they’ll charge $1.50 per additional ATM transaction made at a non-Nationwide Bank ATM. Transactions are limited to six per statement cycle and a $5 fee is charged per each additional transaction. They offer online banking and a mobile app that has a remote deposit feature to make your digital banking experience easier.
Ally Bank is a very popular internet-only bank. If you keep a daily balance of $5,000 or less, you will earn the 0.90% APY. If you’re able to keep a minimum daily balance of $25,000 the APY increases to 1.00%. Although the interest rate on the money market account is not the highest, Ally does offer a very competitive overall package – particularly if you link the account to an Ally checking account. The checking account has no minimum balance and no monthly fee. You can link your money market account to your checking account to provide overdraft protection. Money would be transferred to your checking account with no transaction fee if you ever made a mistake. You would be able to access your money market account with your Ally ATM card, which has free AllPoint access and up to $10 of non-Ally ATM fees reimbursed every month. This money market account is a nice way to provide yourself with overdraft protection while earning interest. If you don’t need check-writing capabilities on your savings, you would still be better off with Ally’s savings account.
ableBanking is a division of Northeast Bancorp, a community bank headquartered in Maine since 1872. The bank has over $1 billion in assets, and your deposit would be FDIC insured up to the legal limit. At 1.70% APY, this is the highest money market rate that we have been able to find (from a bank) in the country. There is a minimum deposit of $250, no monthly fee and you do not need to be a resident of Maine (any US resident can open an account). Unfortunately, the account does not come with check-writing privileges and there is no ATM access. You can deposit and access your funds via ACH (electronic transfer), which can take a couple of days. Just remember: there is a limit of 6 withdrawals per calendar month. When we called to ask questions about the account, we could reach a customer service representative very quickly. This is a good option from a small bank with a great high rate.
If you have student loan debt, you probably are not very excited to see Sallie Mae at the top of this list. However, many people are unaware that Sallie Mae also operates an internet-only FDIC-insured bank with some of the best interest rates in the country. You can earn 1.65% APY, compounded daily and paid monthly. There is no minimum balance and no monthly maintenance fees. You will have check-writing capabilities (although the standard money market limit of six per month applies to this account). The easiest (and best) way to fund and access your funds is via electronic transfer from your existing checking account. If you want a simple account with no fees and check access – this is a good bet. Sallie Mae has just recently increased the APY (it was previously 1.55%), making this one the best rates in the country.
Self-Help is a credit union that anyone can join. If you don’t live, work or worship in one of their eligible counties, you can join by donating $5 to the Center for Community Self-Help. The contribution is tax deductible and will make you eligible for credit union membership. (You can learn more about how to join the credit union here.) At a credit union, your funds are insured up to $250,000 – but it is by the NCUA instead of the FDIC. The money market offers an APY of 1.42% on balances from $500 to $500,000. Even better – you can earn 1.42% APY on balances above $500,000. However, you need to deposit at least $500 and the balance during the month cannot go below $500 – otherwise you will be charged a monthly maintenance fee. You are allowed 6 free withdrawals or transfers from the account each month (including checks).
IncredibleBank is an online division of River Valley Bank. River Valley Bank has been around since 1967, but IncredibleBank was established in 2009. Together, they have over $1 billion in assets. Currently, IncredibleBank is awarding a high APY of 1.82% to those who can deposit $25,000 into their high yield savings account. However, if you at least $2,500 to deposit, you’ll be awarded a decent APY of 1.21%. One thing to keep in mind is that you’ll be limited to a maximum of 10 inbound transfers per business day and you cannot surpass a total of $75,000. Fortunately, you can easily conduct bank to bank transfers online or through their mobile app. All funds are insured by the FDIC.
Digital Federal Credit Union (DCU) currently offers a nice account for people who are just starting to save. You can earn an APY of 5.12% with their Primary Savings Account. You will only earn that rate on deposits up to $1,000. Once you have more than $1k, you should consider other accounts on this list. It is a credit union – and your deposits are insured by the NCUA up to the legal limit. Anyone can join the credit union by donating to one of their participating organizations such as Reach Out for Schools, which has a membership fee of $10. You’ll be able to join one their participating organizations when you go to open your account with DCU. DCU is also part of a nationwide CO-OP network that allows their members to have access to shared branches and surcharge-free ATMs throughout the U.S.
PenFed is a credit union that offers very competitive interest rates. You need to join the credit union in order to benefit from their products. If you have a military or government affiliation, it is free to join. Otherwise, you would need to join an organization like Voices for America’s Troops, which costs $17.00. Once you are a member, you can open PenFed products (including this certificate) online. Your deposit would be insured by the NCUA, which is the National Credit Union Administration. There is a $1,000 minimum deposit for the one-year certificate.
American Bank is a state-chartered bank headquartered in Allentown, PA. They have over $500 million in assets and have experienced steady growth year over year. They’re currently offering the most competitive rate on a 5-year CD provided by an online bank. All you need is $500 to deposit to open the account. They have an online banking platform as well as a mobile app.
Northwest Federal Credit Union was established in 1947 and has grown to obtain over $3 billion in assets. This credit union is open to anyone willing to join one of their Community Partner Organizations. They give you the opportunity to do so when you go to fill out your membership application. In addition to banking online, this credit union also has a mobile app.
