Update: American Express’s Online Savings Rate is set at 0.85% APY as of July 2012. No minimum balance requirements come with this account. Compare it the best online savings accounts nationwide from our database.
Interest rates in general are likely to remain quite low until at least 2014 (according to the latest FED statements). If you’re still in the market for an FDIC insured investment, despite the historically low rates, we would recommend finding a liquid money market or online savings account such as this one, so that your funds are readily available if something unexpected arises.
- Offer from Archive -
If you’re like us, then you probably automatically associate American Express solely with green, gold, and platinum credit cards, however they’ve recently entered the FDIC-insured savings arena.
Currently they offer CDs (certificates of deposit) with maturities ranging from 3 months to 60 months. Today, their most notable CD rate comes with their 24 month CD which is yielding 2.25% APY.
They also have an online savings account yielding a respectable 1.85% APY. Their online savings rate is a variable one and is subject to change without notice after opening the account. Like all bank CDs, their deposits come with a fixed rate that is predetermined and will remain constant for it’s duration.
Like Discover bank and Ally bank their products are available nationally. As far as rates go, they aren’t offering anything spectacular at the moment (then again who is?), but they are offer products with yields above the current national average.
Features of American Express’s online savings account:
- no minimum deposit
- 1.85% APY (national average sits at roughly 1.20% APY)
- FDIC insured up to $250,000
- fee-free online electronic transfers
- Interest compounded daily and credited monthly
Fee structure for this account:
- Duplicate statement: $5 per statement
- Return deposit item: $8
- Outgoing wire transfer: $15
- Non-sufficient funds: $25
- Account research: $25 per hour
- Paid item: overdrawn account: $25
If you have any experience with American Express’s new savings account products, please share by leaving a comment.