Another Savings Account Rate Hike at American Express Bank


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Deal Summary: High Yield Savings Account (1.15% APY); no minimum balance.

Availability: Nationwide (internet bank)

Yesterday, American Express Bank, FSB increased the APY of its High Yield Savings Account (HYSA) by 10 bps to 1.15%. It has been about a month since the last rate hike when the HYSA APY increased from 0.95% to 1.05%. This new rate hike positions the HYSA on par with savings accounts at other big internet banks including Ally, Synchrony and Barclays. Anytime one of the big internet banks increases its savings or money market account rate, it’s newsworthy. It’s a sign of rising interest rates and increased competition that will hopefully lead to more rate hikes.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.15%--American Express Bank, FSB.High Yield Savings Account
Accounts mentioned in this post. Rates as of September 20, 2017.

The American Express Bank HYSA has a long history. I first wrote about it in 2009. During that time, the account has never been a rate leader, but it has always been fairly competitive. The lowest rate it has ever been was 0.75% for a couple of months in 2012. In early 2015, the rate had gone back up to 0.90% where it held until the middle of May when the rate went up to 0.95%. In middle of June it went up to 1.05%.

Now that we’re seeing internet banks increasing their savings account rates to 1.35% and 1.40%, a savings account rate of 1.15% may sound disappointing. It’s worth noting that American Express Bank has several features that give them an advantage over other internet banks. In fact, I seem to receive more positive opinions from readers about this bank than most other internet banks. In addition to not having monthly fees or minimum balance requirements, the HYSA has no dollar limitations for ACH bank-to-bank transfers and free wire transfers. Readers have also commented about the bank’s fast ACH transfers and about their top-notch user interface.

Below are a few of the relevant features that are mentioned in the bank’s FAQ section:

  • ”maximum total account balance is $5 million”
  • Two small test deposits are used to link external accounts
  • Maximum of 3 external accounts can be linked at a time (according to CSR)
  • For Pulling Funds from Your External Bank, ”On the day you initiate your transaction on the Personal Savings website, the funds will be reflected in your Current Balance and begin earning interest. [...] the funds will not appear in your Available Balance until the 5th business day after the deposit is initiated.”
  • For Pushing Funds to Your External Bank, “On the day you initiate your transaction on the Personal Savings site, the amount will be deducted from your Current and Available balance and the funds transfer will be initiated. The funds will generally be reflected at your bank in 1-3 business days.”
  • No dollar limits for ACH bank-to-bank transfers (according to CSR)
  • No wire transfer fees (according to CSR)
  • ”ATM cards, debit cards, or checks are not provided”
  • HYSA “may not be opened in the name of a trust, IRA, or business”
  • ”You may designate up to six (6) beneficiaries per account.”
  • ”Beneficiaries named on POD accounts must be individuals; POD accounts cannot be set up in the names of trusts.”

Thanks to the DA reader, buckeye61, for mentioning the rate hike in the DA forum.

Availability

American Express Bank, FSB is an internet-only bank that is headquartered in Salt Lake City, Utah. The High Yield Savings Account and CDs can be opened online or by phone. You can fund the account by either linking your current bank account or by mailing a check.

To open an account with American Express Bank, FSB, you must be at least 18 years old, a U.S. citizen or a resident alien with a valid Social Security number or other taxpayer identification number and have a residential address in the United States.

Bank Overview

American Express Bank, FSB is currently the 38th largest bank in the nation based on assets. It has total assets in excess of $51 billion, with over 835k customer accounts. The bank has an overall health grade at EpBooks.us of “A” with a Texas ratio of 3.28% (excellent) based on March 31, 2017 data. Please refer to our financial overview of American Express Bank, FSB for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35328).

How the Savings Account Compares

When compared to the 208 Savings Accounts tracked by EpBooks.us that are available nationally and have minimum balance requirements of under $500, 9 savings accounts have higher rates. Below is a sample of these, showing how they compare with American Express Bank.

The above rates are accurate as of 7/14/2017.

To search for the best Savings Account rates, both nationwide and state specific, please refer to our Savings Account rates table or our new Rates Map page.

Related Pages: Salt Lake City savings accounts, savings accounts, nationwide deals, Internet banks

Comments
Foghorn Leghorn
Foghorn Leghorn | | Comment #1
You'd figure AMEX would have higher rates to help out the savers. After all, this is the same business that shoves "Small Business Saturday" down my throat every November. If they're truly looking to help the little guy, AMEX should raise your rates.
Xuim
Xuim | | Comment #2
That was just marketing to get small businesses to accept Amex cards which have a higher transaction fee. Bankers are always scamming, Visa is now encouraging businesses to refuse to take cash!
Bogie
Bogie | | Comment #3
Yep, never thought I'd see the day when cash was not an option. Even our Federal Government is extremely against cash transactions and discourage the practice. The old saying "Cash is king" no longer rings true!
DCGuy
DCGuy | | Comment #5
Reducing currency use saves on printing costs and reduces counterfeiting. Better to have "invisible money" where no one knows who has what and you can run deficits to infinity!
Bogie
Bogie | | Comment #6
DCGuy, going cashless, is not "invisible money". Every transaction and the amount can be traced. That is why "Big Brother" does all it can to discourage the use of cash. As long as it is legal, I don't think it is anyone's business how much I have, what I purchase or how much I spend. That is why I prefer CASH!

I do agree with you about running deficits to infinity. Government spending at all levels is beyond control.
Luvcd
Luvcd | | Comment #7
Bad guys don't deal in foreign currency nor use banks or emoney
barry_NY
barry_NY | | Comment #4
If AMEX really cared about small business, then they would encourage paying in cash to save small business processing costs.
Att
Att | | Comment #8
Businesses don't have to accept charge cards. I know of some near me cash only. People to tend to be willing to buy more things when they can charge items. Retailers can give cash discounts but the only ones I know of are gas stations.
Bogie
Bogie | | Comment #9
My local electrical supply wholesale house prices all their materials as a cash price. If a person chooses to use a credit card, there is an added 3% to customer's cost. At least it was an additional 3% years ago. The percentage may have went up, I wouldn't know, that is another reason I pay with cash or sometimes with a check.
RJM
RJM | | Comment #10
Surcharges for using plastic is against every credit cards rules. They cant stop a cash discount but they will threaten to stop letting to take them if you don't stop the surcharge.

In my area, its even against the law for gas stations to have a cash and credit price. One station started doing it about 15 years ago and the regulators made them stop. (Government, not credit cards)
I went to a bar way back when that charged a $3 surcharge. But no credit card would let that continue if they knew about it.

I have seen a few signs saying $5 minimum at small quick marts.
DCGuy
DCGuy | | Comment #11
I have never seen a surcharge for credit cards at any grocery store. Many of them do have a sign that says $5 minimum amount for using credit cards.
Att
Att | | Comment #12
I got a 3% discount on my kids braces by paying by check. .VS charging. With some small businesses you can ask and some will give you a lower price if you pay by cash or check. Most gas stations near me the cash price is 10 cents lower if you pay cash. Or you can say you have to pay 10 cents more to charge. It's the glass half full or half empty.
Rate Hike and Review of the American Express Bank’s Savings Account
Deal Summary: High Yield Savings Account (1.05% APY); no minimum balance.

Availability: Nationwide (internet bank)

After several internet banks have raised their rates to 1.15% and above, the recent rate hike of the High Yield Savings Account (HYSA) at American Express Bank, FSB (1.05% APY) may not sound like an exceptional deal. Nevertheless, I thought it was worth a blog post since the internet bank has several features that give them an advantage over others. In fact, I seem to receive more positive opinions from readers about this bank...

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