American Express, better known for its credit cards, offers a smattering of certificates of deposit (CDs) with yields that largely lag behind the top rates you can find on the market. Still, American Express doesn’t require a minimum balance, and are therefore useful for new savers just beginning to build their nest egg.
Note: All account details and annual percentage yields (APYs) are accurate as of August 21, 2023.
Overview of American Express CDs
American Express offers CDs with varying term lengths and rates. Rates range between 1.00% and 4.75% APY. The term lengths range from 12 months to five years, you won’t find any 3-month or 6-month terms available.
When you open an American Express CD, you won’t have to deal with any minimum deposit requirements. But like most CDs, you will face an early withdrawal penalty if you need to access your funds before the maturity date. The fee will be equal to between 90 days’ and 540 days’ interest and varies based on the CD term length.
At the maturity date, the CD will automatically renew. But you’ll have a 10-day grace period to withdraw the funds from your CD. You’ll be notified about the maturity date so you can withdraw any funds you need.
Here’s a breakdown of the details attached to American Express CDs:
How much can I earn with American Express CDs
Here’s how much you’ll earn on $10,000 in savings with American Express CDs.
How American Express CD rates compare
Some American Express rates are competitive, while others aren’t.
The bank’s 12-month CD is the highest yielding, with a 4.75% APY. The national average rate of a 12-month CD is 1.76%, as of August 21, 2023 per the Federal Deposit Insurance Corporation (FDIC), which is significantly lower. But it’s possible to find higher CD rates through other banks. For example, a 12-month CD through Sallie Mae Bank currently comes with a 5.50% APY.
Below is a breakdown of how American Express CD rates compare to other financial institutions.
The range of rates highlights that shopping around is the best strategy for finding the best CD rates. If you have a unique type of CD in mind, like a jumbo CD or 10-year CD, it’s especially helpful to compare rates across multiple banks and credit unions.
If you are deciding on how much to tuck away, running the numbers through a CD calculator can help you see how your funds can grow. For savers who prefer shorter CD terms, building a CD ladder might help you tap into higher rates without giving up regular opportunities to withdraw funds penalty-free.
How to Open an American Express CD
Savers can open an American Express CD online. In order to get started, you’ll need to confirm that you are at least 18 years old and have a Social Security Number or Individual Taxpayer Identification Number with a home address in the U.S. Plus, you must plan to use this account for personal reasons.
You’ll also be asked if you are a current American Express customer. If you are, this may streamline the application process. Be prepared to fund your account.
If you run into questions, you can reach out for help by calling 1-800-446-6307 anytime.
Alternatives to CDs at American Express National Bank
CDs aren’t the only opportunity for savers to grow their funds at American Express.
The bank also offers a high-yield savings account (the American Express® High Yield Savings Account), which comes with a 4.25% APY. Through the savings account, you can access the funds at any time, without giving up access to an attractive rate.
Savers looking to set aside funds for retirement may appreciate the IRAs available through American Express. You can tuck funds into this tax-advantaged account and watch them grow with the help of CDs or a high-yield savings account.
About American Express
American Express might be best known for the bank’s high-end credit cards. But the financial institution has plenty of other products to offer customers, including high-yield savings accounts, CDs, checking accounts, personal loans and more. With roots back to 1850, this well-established bank ranks in the top 25 largest banks in the U.S.
Frequently asked questions (FAQs)
Current CD rates at American Express range between 1.00% and 4.75% APY. The exact rate you get varies based on the term length.
American Express CDs don’t come with a minimum deposit requirement.
The highest CD rate at American Express is 4.75% APY for a 12-month CD.
