American Express does not offer a traditional savings account
American Express is primarily a credit card and payment company, not a bank that takes deposits. They do not offer savings accounts, checking accounts, or money market accounts where you deposit your own money and earn interest. If you are looking for a place to save money and earn returns, you will need to look elsewhere.
American Express does partner with banks to offer certain deposit products under the American Express Bank brand, but these are limited and not widely available to most cardholders. The company's main business is issuing credit cards, processing payments, and offering travel and spending rewards.
Key Takeaways
- American Express does not operate a retail savings account product for consumers.
- American Express Bank exists as a separate entity and offers some deposit products, but availability is restricted and not open to the general public.
- If you hold an American Express credit card, your rewards points and cash back cannot be held in an American Express savings account.
- You can transfer cash back or rewards to a linked external bank account, but American Express itself does not hold the funds.
What American Express Bank actually does
American Express Bank is a subsidiary that handles institutional and business banking services, not consumer savings. It provides treasury services, payment solutions, and financing options for corporations and large organizations. This is different from a consumer bank that accepts deposits from individuals.
The American Express Bank name can be confusing because it sounds like a full-service bank, but it operates in a narrow segment of the financial industry. If you are a small business owner or individual consumer, American Express Bank's services are not designed for you.
Where your American Express rewards and cash back go
When you earn cash back or points on an American Express credit card, those rewards live in your American Express account online, not in a savings account. You can redeem them for statement credits, merchandise, travel bookings, or transfer them to partner programs. You cannot leave the money sitting in an American Express account earning interest.
If you want to convert cash back to actual money in your bank account, you can request a direct deposit to your linked checking or savings account at another bank. This transfer typically takes one to three business days. The funds then sit in your own bank's account, where they may or may not earn interest depending on your bank's terms.
Alternatives if you want to save money and earn interest
If you are looking for a place to deposit money and earn interest, you have several options. Traditional banks like Chase, Bank of America, and Wells Fargo offer savings accounts. Online banks like Ally, Marcus, and Discover often offer higher interest rates on savings accounts than brick-and-mortar banks.
Credit unions also offer savings accounts and may have lower fees and competitive rates. Money market accounts and certificates of deposit (CDs) are other ways to save money and earn returns, though they typically have different terms and withdrawal rules than regular savings accounts.
How to use American Express rewards if you do not have a savings account with them
You can still make the most of your American Express card rewards without a savings account. One strategy is to redeem cash back directly as a statement credit, which reduces your credit card balance immediately. Another is to transfer points to travel partners like airlines or hotels if you plan to travel.
If you want to accumulate cash back over time, you can let it build up in your American Express account and then transfer a larger amount to your bank account when you reach a threshold. Some cardholders use their rewards to pay for specific purchases or travel, which effectively saves them money on those expenses.
Why American Express does not offer consumer savings accounts
American Express operates as a charge card and payment network company, not a deposit-taking institution like a traditional bank. This business model focuses on transaction volume and cardholder spending rather than managing customer deposits. The regulatory and operational requirements for accepting deposits are different from those for issuing credit cards.
Banks that accept deposits must maintain reserve requirements, pass regular audits, and comply with deposit insurance rules. American Express has chosen not to enter this market for consumers, instead focusing on its core strength: processing payments and rewarding spending.
What to do if you want both rewards and savings
The most practical approach is to use an American Express credit card for earning rewards, then transfer the cash back to a savings account at a separate bank. This way, you get the rewards benefits from American Express and the interest-earning potential from your bank's savings account.
You can also use multiple financial institutions for different purposes: a credit card with American Express for rewards, a checking account at one bank for bills, and a high-yield savings account at an online bank for emergency funds or goals. This approach is common and gives you flexibility to choose the best product for each financial need.
Frequently Asked Questions
Can I earn interest on my American Express rewards points?
No. Rewards points and cash back held in your American Express account do not earn interest. They remain at their current value until you redeem them. If you want to earn interest, you must transfer the cash back to a savings account at a bank.
Does American Express offer any type of deposit account?
American Express Bank offers deposit products, but only to institutional clients and businesses, not to individual consumers. If you are a regular cardholder, you cannot open a deposit account with American Express.
What happens to my cash back if I do not redeem it?
Your cash back stays in your American Express account indefinitely until you choose to redeem it. It does not expire, but it also does not earn interest. You can redeem it as a statement credit, transfer it to your bank, or use it for other redemption options whenever you want.
Can I transfer my American Express rewards to a savings account automatically?
You can set up a direct deposit of cash back to your bank account, but you must initiate each transfer manually through your American Express account. Automatic recurring transfers are not typically available, though you can request a transfer whenever you choose.
Is there a bank that offers both a credit card and a savings account?
Yes. Many traditional banks like Chase, Bank of America, and Wells Fargo offer both credit cards and savings accounts. If you want all your banking in one place, opening an account at a traditional bank may be simpler than managing accounts at multiple institutions.