American Express Bank Accounts
American Express Bank offers personal savings accounts, which are all supported by online banking. You do not have to visit a branch to deposit or request a withdrawal, as you can do everything from your computer in a simple process. You can access your account 24 hours a day, and similarly transfer funds with ease.
To enable electronic money transfers to and from your new American Express account, you are required to link your personal savings account to a checking or savings account you have at another bank. You can link up to three different external accounts on every account, so long as they are all in your names. You will need the external bank account number(s) and routing numbers for this. American Express will then make small, test deposits to these accounts, the amounts of which you will be required to identify during the verification process.
The Personal Savings Accounts do not support trust accounts. However, you will have a Payable on Death (POD) account, which allows you to designate your account funds to any number of beneficiaries you want. All American Express POD accounts are offered in line with the state regulations for POD accounts, so check what is allowed in your state and what is not before assigning your savings account as a POD account.
High-Yield Savings Accounts
American Express also offers one of the best high-yield savings accounts in the market. Currently at 1.15%, they have the second-highest percentage and are among the most popular high-yield accounts providers. Your money will be safe with them, as each High-Yield Savings Account depositor is covered by the Federal Deposit Insurance Corporation (FDIC), to a minimum of $250,000. This means you can invest up to $250,000 without fear of losing your money. Additionally, you earn an attractive interest from the day your complete application is received.
The bank operates on a Certificate of Deposit (CD) system, which gives you the privilege to earn a CD rate if you meet the set terms and conditions. The CD rate is simply the interest rate and Annual Percentage Yield (APY), given on the date the bank receives your application. Your CD rate is locked in immediately your application is received, even if it will be days before it is approved. You will need to meet a few conditions to claim/qualify for the CD rate earnings, which are:
1. The bank must receive your deposit (account-opening) within 30 days after approval of your application.
2. You shall not withdraw interest earned before the maturity date.
3. You shall not withdraw the principal before the maturity date.
The bank allows customers to make withdrawals on both interest and principal before the maturity date, but this action attracts penalties. Withdrawing interest minimizes your earnings, while you may be penalized for withdrawing the principal. For someone who is willing to let their money grow, this is a perfect choice for a savings account, as naturally they won’t be inclined to make unnecessary withdrawals.
Making deposits and withdrawals
You can deposit and withdraw money electronically or by check. Electronic deposits and withdrawals are easy once you link your accounts. You only need to point the deposit or withdrawal to the appropriate account and the deal is done.
For check deposits, any checks you send must be drawn on an account in your name. Money orders, travelers’ checks, counter checks, multi-endorsed checks and personal checks from an account that is not in your name will be rejected.
If you want to withdraw by check, call the bank to request the withdrawal and they will send a check payable to you, to your mail box. Naturally, depositing and withdrawing by check takes longer than it does by electronic transfer.
Attractions of American Express Savings Accounts
1. There is no minimum deposit amount, monthly charges and no opening fees. You can open an account with whichever amount of money you have. That there is no fee charged or monthly maintenance fee means you get to maximize your savings and earnings.
2. The account opening process is simple and fast.
3. You can set up automatic transfers to your savings account from your linked account at a frequency of your preference.