I just finished opening the American Express high yield savings account and thought I’d write a review. The entire process was fairly quick from start to finish.
Update: Discover currently offers a better interest rate and 100% U.S. customer service. Click Here to Read our Full Discover Savings Account Review.
I opened the account because I’m tired of earning nothing from my local checking/savings account. I’ll use this savings account for short-term liquidity purposes, and I’ll continue investing in financial assets like stocks and bonds (see reviews of my favorite investment platforms here and here) for long term growth.
Here is a little background information from Wikipedia:
American Express Company (NYSE: AXP) or AmEx, is an American multinational financial services corporation headquartered in New York City. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. Amex credit cards account for approximately 24% of the total dollar volume of credit card transactions in the US, the highest of any card issuer. BusinessWeek and Interbrand ranked American Express as the 22nd most valuable brand in the world, estimating the brand to be worth US$14.97 billion.
American Express High Yield Savings Review
The American Express High Yield Savings Account is fully protected by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor.
Everyting is handled online. You’ll want to maintain a separate checking account so that you can deposit or withdraw money at any time. By making the account online only, American Express keeps their overhead costs lower.
- Automatic Transfers – You can set up an automatic transfer to/from your external checking account, and schedule a direct deposit to your AmEx savings account.
- Solid Interest Rate – The rates are usually competitive with other online banks.
- No Minimums – You only need $1 to open an account, and you don’t have to keep a certain balance.
- Convenience – The application process takes only a few minutes if you have all of your personal information ready.
- No Fees – There are no fees to open or maintain your account.
- Safety – FDIC insurance and a reputable brand that should be around for a long time.
How to Open an Account
Here are the steps you need to take to open a new account:
- Gather and Input Information: They will ask for your Social Security number, address, email, date of birth and existing bank account information if funding your account electronically.
- Choose your Account: Decide if you want a single or joint account.
- Verify Identity: You must answer a few identity questions, such as previous loans and past address information.
- Fund: You are required to link a checking account and fund your new American Express high yield savings account with at least $1.
That’s it. These steps literally took me about 5 minutes.
American Express High Yield Savings Account Summary
An online savings account will offer a better interest rate than many local banks, making it a great addition to a local checking account. Using both accounts, you can easily transfer money between the two.
Update: We switch to Discover, who consistently offers a better interest rate and better customer service. Read our Full Discover Savings Account Review.