As such, it can offer its High Yield Savings Account for free. FDIC insured. American Express is an FDIC member. This means that, just as with any traditional bank account, you're covered for as much as $250,000 per depositor, per institution, in the event of bank failure.
American Express offers an APY of 0.40% (as of March 19, 2021) on your savings. 1 That's among the top-earning savings accounts for well-known banks, likely because it's an online-only experience. What's more, Amex has been offering competitive savings rates since 2018, so it's a consistently high-earning account.
Below is information that can assist you in maxmizing your FDIC coverage for your American Express® Personal Savings account(s). ... American Express National Bank is an FDIC-insured bank and your deposits is insured as long as it does not exceed the allowable coverage limit.
For those looking to save money with a big-name financial institution, the American Express High Yield Savings Account is a popular option. It's a straightforward account with no fees whatsoever and a higher-than-average APY.
High-yield savings offer zero risk
As long as you open a savings account at a legitimate bank that is FDIC-insured, "there is zero risk of capital loss," says Gordon Achtermann, a Virginia-based certified financial planner.
Historically, American Express charged higher fees than their competitors, making their cards less attractive to merchants. ... As if that weren't enough, American Express also developed a reputation for siding more frequently with the customer than with the business when it came to chargebacks and other disputes.
The deposits at American Express Bank are fully insured by FDIC, which means there is no risk in depositing your money up to the FDIC maximum, currently $250,000 for an individual savings account.
While it is true that American Express offers their own line of rewarding credit cards, many American Express cards are issued by a third-party – like Bank of America, Wells Fargo or U.S. Bank. When you sign up for an American Express card through another bank's site, the bank is the card issuer.
Summary of best high-yield online savings accounts for May 2021
| Institution | APY | Fees |
|---|---|---|
| Ally Bank Online Savings Account | 0.50% | None |
| Citibank Accelerate High-Yield Savings | 0.50% | None |
| Marcus by Goldman Sachs High-Yield Online Savings Account | 0.50% | None |
| TAB Bank High Yield Savings | 0.50% | None |
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