Table Of Content
In recent years, American Express has expanded its services to include banking products including CDs.
American Express CDs allow you to choose a term of up to five years, locking in your rate for guaranteed returns. There are no monthly fees and no minimums, so you can enjoy an FDIC insured product backed by the 24/7 American Express customer support.
With American Express CDs, you can either keep the returns in your account to earn more interest or withdraw your interest with no penalty. However, as with most CDs, if you withdraw some or all of your principal balance before the CD matures, you will incur a penalty.
American Express CDs
APY Range
Minimum Deposit
Terms
Fees
American Express CDs
APY Range
Minimum Deposit
Terms
Fees
How American Express Bank CDs Work
American Express aims to make setting up a CD as simple as possible. You can open a new CD account in only a few minutes and American Express will check public records to verify your personal details. No minimum deposit exists, so you can open your new CD with any amount, but there are no Jumbo CDs or unique benefits for high amounts. The rates are set according to your CD term.
For those who are looking for CD laddering, Amex is not a good option. The gaps between the different terms os too high, and you can get higher rates on a few terms and not on many of them as you can find in other banks.
It is important to consider the CD term carefully, as if you need to withdraw some or all of your funds before maturity, an early withdrawal penalty is imposed. The amount of the penalty varies according to your CD term.
If your CD has a term of less than 12 months, the penalty is 90 days of interest. Terms of 12 to 48 months have a penalty of 270 days interest, terms of 48 to 60 months, the penalty is 365 days of interest and terms of 60 months or longer, you’ll pay 540 days of interest. .
Bear in mind that if the amount of the penalty exceeds the available interest that you’ve earned on your CD, American Express will deduct the difference from your CD account principal.
What Are The Amex Bank CDs Rates?
Overall, Amex CD rates are high compared to other banks including online banks. While the terms are limited, the rates are competitive.
Here are the rates as of March 2023:
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
12 Months | 4.50% | 270 days interest |
18 Months | 1.00%
| 270 days interest |
24 Months | 4.25% | 270 days interest |
36 Months | 1.15% | 270 days interest |
48 Months | 1.20% | 365 days interest |
60 Months | 3.25% | 540 days interest |
How Much Can You Earn If You Deposit $100,000 Today?
In case you deposit $100,00 to Amex CD, here are the expected earnings (before tax) in case the interest is compounded daily:
CD Term | APY | Interest Earned |
|---|---|---|
12 Months | 4.50% | $4,538 |
18 Months | 1.00%
| $1,490
|
24 Months | 4.25% | $8,744 |
36 Months | 1.15% | $3,461 |
48 Months | 1.20% | $4,848
|
60 Months | 3.25% | $17,382 |
Are American Express Bank CD Rates Competitive Compared to Other Banks?
Since it is difficult to get a rate of 4% or more with traditional bank CDs, American Express CDs are highly competitive. According to a national survey, the average CD rates for CDs in March 2023 is 1.63% for 12 months.
This means that the base rate of American Express CDs are almost on the average rate, while the 12, 24 and 60 month CDs are several times the national average.
When comparing American Express CDs with CD products offered by online banks, American Express remains competitive. There are a number of online banks that offer impressive rates on their CD products, but some of the American Express CD terms can stand up to a head to head rate comparison.
However, it is important to note that many online banks impose a minimum initial investment to access the higher rates, which does not apply to American Express CDs.
American Express Bank CD Rates vs Savings Rates
If you’re unsure about American Express CDs, you may want to look at the American Express High Yield Savings. You can still enjoy a fixed rate, which is lower than the highest American Express CD rates, but beats the base rate. You can also enjoy access to your funds, but you are limited to a maximum number of withdrawals per month.
The key difference between an American Express CD and its High Yield Savings Account is that you can continue to add funds to your savings account. Once you open a CD, there is a 10 day period when you can add further funds, after this, your CD account is locked. However, with a savings account, you can add funds as and when you like.
Both types of American Express accounts have no monthly maintenance fees and no account minimums. So, if you’re unsure if you will be able to tie up your funds for a fixed period, you may be better suited with the Amex High Yield Savings Account.
American Express Savings Account
APY Savings
Minimum Deposit
Promotion
Fees
American Express Savings Account
APY Savings
Minimum Deposit
Promotion
Fees
About American Express Bank
American Express has an impressive history that dates back to 1850 and it is best known for being a credit card issuer. American Express credit cards are considered the gold standard for reward credit cards, offering some excellent benefits with reasonable annual fees. However, approximately ten years ago, American Express expanded its product line and began to introduce banking products.
One of the first products was its high yield savings account, but this was quickly followed by CDs. Today, American Express bank has a comprehensive product line that includes a checking account, IRAs, personal loans and business products.
FAQs
Does American Express Bank Offer No Penalty CD Rates?
Unfortunately, no, American Express Bank does not currently offer a no penalty CD.
Does American Express Bank offer promotions on CDs?
American Express Bank does not have specific CD promotions, but depending on the term that you select, you can earn a higher rate.
Do American Express Bank CDs come with a grace period? How does it work?
Yes, there is a 10 day grace period. When you first open your account, you’ll have 10 days to add more funds to your account. After your CD matures, you’ll also have 10 days
Which Amex CDs will earn you the most money?
The best rate is offered with the 60 month Amex CD, but you can get almost the same rate with a 12 or 24 month CD. Just bear in mind that if you need to withdraw early, you will incur a penalty.
So, if you’re unsure about tying up your funds for five years, it is better to opt for the slightly lower rate offered with the 12 or 24 month term.
How are American Express Bank CDs interest calculated?
The interest on American Express Bank CDs is compounded daily and then deposited into your account on a monthly basis. You can withdraw your interest payments without penalty, but the overall rate is calculated based on leaving the interest in the account to earn further interest.
How does the American Express Bank early withdrawal penalty work?
The early withdrawal penalty for American Express Bank CDs varies according to the CD term. The penalty is calculated in terms of days of interest. The longer your CD term, the higher the interest penalty.
This ranges from 90 days to 540 days and if you don’t have sufficient interest in the account to cover the penalty, American Express will take the remainder from the principal balance of your account.
Compare Amex Bank
American Express vs Chase
Although Chase Bank has a modern, trendy image, it is one of the oldest banks in the United States. JP Morgan Chase's consumer division, Chase Bank, is one of the largest banks in the United States. Even though its interest rates aren't particularly competitive when compared to online banks and credit unions, loyal Chase customers who keep a significant amount of money with the bank can earn slightly better rates.
American Express is best known for its credit card business. The financial services firm, on the other hand, has a banking subsidiary that offers high-yield savings and CD accounts. For those looking to save money with a well-known financial institution, the American Express High Yield Savings Account is a popular option.
Read Full Comparison: American Express vs Chase Bank
American Express vs Capital One
Capital One is a premium online banking service that offers convenient, dependable service and physical locations to anyone looking for them. Capitol One 360, in addition to providing a trustworthy and dependable service, has no hidden fees or minimums, allowing you to continue earning interest on your daily money. There are over 38,000 fee-free ATMs and over 2,000 Capital One ATMs to meet your money access needs.
American Express is one of the world's most well-known credit card brand names. Customers can get a personal banking solution from American Express National Bank, which offers online savings and CD options. Personal savings accounts have a high potential yield. American Express National Bank is a respectable, secure banking option that does not offer any extra features but does offer the most important one.
Read Full Comparison: American Express vs Capital One: Which Bank Is Better For You?
American Express vs Citi
The Citi checking account is a fairly standard product. The account does have a $12 monthly fee, but it is waived if you make a qualifying deposit or make a qualifying bill payment. Overdraft protection is also available, which automatically transfers funds from your savings account to avoid overdraft fees.
Because the American Express savings account has a high yield, the number of withdrawals or transfers you can make each month is limited to nine. It's also a nice touch that American Express allows you to choose paper statements if you prefer the old-fashioned way.
Read Full Comparison: American Express vs Citi: Where to Save Your Money?
American Express vs CIT Bank
CIT Bank is similar to a traditional high street bank in that it offers a variety of savings accounts, an eChecking account, CDs, mortgages, and home loans. The only obvious gaps in the product line are the absence of a credit card or personal loan option.
American Express began as a credit card company, but in recent years, it has expanded into a broader range of banking products. You can access savings accounts and personal loans in addition to its numerous credit card options. However, if you're looking for a full-service bank, American Express doesn't offer a checking account or mortgage options.
Read Full Comparison: CIT Bank vs American Express: Which Bank Account Is Better For You?
