Amex High-Yield Savings Account Interest Rate April 2024

American Express savings rate

While the national average interest rate for savings accounts is just 0.47%, American Express offers a high-yield savings APY of 4.30%. 

This higher rate makes sense, given that an American Express high-yield savings account is designed to help consumers maximize their savings. The main feature of these accounts is a much higher-than-average APY, which can help you achieve a financial goal, like saving for retirement or a home renovation, faster than you would if you had to settle for a much lower interest rate.

In addition to a great savings account interest rate, American Express accounts have no minimum balance requirement, so you won’t be penalized for dipping below a certain threshold. There are no fees, either. Both of those features could eat into your savings, which is why it’s so important to compare account benefits before you choose a bank.

Another perk of Amex savings accounts is that they earn the same interest rate across all tiers. No matter how much money you have tucked away, you’ll get the most favorable APY associated with American Express’s high-yield accounts.

American Express High Yield Savings Account Interest Rate & Fees

How much can I earn with the American Express High Yield Savings Account?

With an American Express high-yield savings account, you can earn more interest than you can with a traditional account or a high-yield account from another bank that might have a lower APY or exorbitant fees.

The main reason to sign up for an American Express high-yield account is to take advantage of the higher-than-average interest rates, so it’s important to understand how APY works. That way, you know exactly how fast your money will grow, and perhaps, you’ll even find more inspiration to funnel “extra” money into savings to reach your goals in record time.

American Express’s APY is compounded daily and credited monthly. You’re technically earning interest every day, and the interest is calculated based on the total amount in your account (initial deposit + interest) not just the opening account balance.

Ultimately, the amount you earn in interest depends on several factors, including:

• Your initial deposit
• How much money you’re adding over time
• How long you’re leaving money in the account to accrue that interest

Imagine you put $5,000 in a savings account. Here’s what your savings might look like at different intervals if you choose Amex’s high-yield offering.*

Compare the interest earned above with what you’d get with a traditional savings account offering the national average APY. In one year at 0.47% APY, your $5,000 would generate just $23.05, almost $200 less than the high-interest account. At the five-year mark, your traditional savings account would accrue about $116.33 in interest, which is about $1,082 less than you’d earn with a high-yield account from Amex.

*This assumes you don’t make any additional deposits, don’t withdraw any of the initial deposit and that the interest rate tied to your account remains the same.

How the American Express savings account interest rate compares

The rate for an Amex high-yield savings account is much higher than typical savings accounts and on par with savings accounts from online banks with some of the best rates in the industry.

The national average interest rate for savings accounts in the United States is about 0.47%. Many brick-and-mortar banks with big names offer traditional savings accounts with APYs that sit at around the national average. 

Some banks may offer higher rates tied to certain thresholds. For instance, you’re only eligible for a higher APY if you maintain a certain (usually quite high) minimum balance or pay monthly maintenance fees that eat into the interest you’re earning.

American Express’s high-yield savings accounts are competitive because they:

• Come with an impressive APY of 4.30%
• Don’t require a minimum balance to earn max APY
• Don’t charge monthly fees

Compare American Express to some of the savings account rates and requirements served up by other large banks in the United States.

Remember, though, that interest rate isn’t everything. Even if there’s a low minimum balance required for top APY and that APY is attractive, the account might have other features that don’t line up with your needs. For instance, some people prefer a bank with name recognition, like Capital One or U.S. Bank, and those banks tend to have stricter requirements and lower APY.

Online banks or online accounts from brick-and-mortar banks will almost always have better terms. But before you give them your money, be sure your account will be FDIC-insured and investigate other features and how the savings account works, like whether the bank offers a mobile app and the account-opening experience has to be done in person or if it’s possible to complete it online.

Is the American Express High Yield Savings Account right for you?

The only way to know whether an Amex high-yield account is right for you is to read through the fine print and know how the benefits and drawbacks match up with your own list of needs and wants. 

Before you decide whether to sign up for an American Express account or move on to another bank, consider these pros and cons.

Another notable perk of an American Express savings account is that customers can access the bank’s sizable resource library. This collection of tips and tricks is a wonderful way to expand your financial literacy. You can learn how to better save money for retirement or get information on daily changes that can help you build your savings faster. 

How to apply for an American Express savings account

Once you’re ready to sign up for a savings account, the last thing you want to deal with is a highly complicated process that interferes with your already busy schedule.

Luckily, the application process for an Amex savings account is pretty simple.

Be sure to tweak your account settings to control things like getting a digital statement versus a paper statement or if you want to set up automatic checking-to-savings transfers at specific intervals.

Other savings options at American Express

Sometimes a savings account just isn’t quite right for your situation. 

Perhaps, you’re looking for an even higher interest rate. Or maybe you want to lock away your money until you really need to use it, keeping it safe from shopping sprees and avoiding those pricey nights out on the town. In those situations, you might prefer an alternative type of savings account from American Express, like a certificate of deposit (CD).

A certificate of deposit is a timed investment with strict guidelines. Follow those guidelines and you can get a pretty generous APY in return — but read everything closely because some shorter or medium-length CD terms offer interest rates far below what you’d get with high-yield savings.

American Express CD Options and Interest Rates

Keep in mind that unlike a savings account, which gives you the option to deposit and withdraw at will with little to no penalty, CDs are locked down for the duration of the agreed-upon term. You cannot access the money you deposited without facing a penalty.