American Express does not offer traditional certificates of deposit
American Express Bank does not sell CDs in the way that most banks do. They do not issue fixed-term certificates where you deposit money for a set period—say six months or five years—at a locked interest rate. If you are looking for a CD specifically, you will need to look elsewhere.
What American Express does offer through their banking division is a high-yield savings account called American Express Personal Savings. This account pays interest on your balance, but it works differently from a CD: there is no maturity date, no penalty for withdrawals, and the interest rate can change. The rate is typically competitive with or higher than traditional savings accounts, but it fluctuates based on Federal Reserve decisions and market conditions.
The distinction matters because CDs lock in a rate for a specific time, while savings accounts keep rates flexible. If you want may provide returns over a fixed period, American Express is not the right choice. If you want higher interest than a regular savings account without locking your money away, their savings account may be worth comparing.
Key Takeaways
- American Express Bank offers a high-yield savings account but does not issue certificates of deposit with fixed terms or maturity dates.
- Their Personal Savings account pays interest that changes with market rates, so your return is not locked in the way a CD return would be.
- You can withdraw money from an American Express savings account at any time without penalty, unlike a CD which charges a fee for early withdrawal.
- If you need a CD, you will need to open one at a different bank—many online banks and credit unions offer competitive CD rates.
How American Express Personal Savings works
American Express Personal Savings is a deposit account that earns interest on your balance. You can open it online, and there is no minimum deposit required to start. Money you deposit is FDIC-insured up to $250,000, the same protection that applies to CDs at other banks.
The interest rate changes periodically—American Express adjusts it based on Federal Reserve rate changes and their own business decisions. You can check the current rate on their website before you open the account. Unlike a CD, you do not know what your rate will be six months or a year from now, and you cannot lock in the current rate for future months.
Withdrawals are free and unlimited. You can move money out whenever you need it, with no early withdrawal penalty. This makes it useful if you are saving for something but might need access to the cash before a specific date.
Why someone might choose a CD instead
A CD guarantees your interest rate for the entire term. If you open a one-year CD at 4.5%, you will earn 4.5% for the full year, even if rates drop to 2% later. This certainty appeals to people who want to know exactly what their money will earn and do not want to worry about rate changes.
CDs also create a psychological barrier to spending. Because you pay a penalty to withdraw early—usually a few months' worth of interest—you are less likely to tap the money for everyday expenses. This can help if you are trying to build savings for a specific goal.
The tradeoff is that your money is locked away. If you need the cash before the CD matures and withdraw it early, you lose some of the interest you earned. And if rates rise after you buy a CD, you cannot move to a higher rate without paying that penalty.
Where to find CDs if you want them
Most traditional banks offer CDs, though their rates are often lower than online banks. You can open a CD at your current bank by visiting a branch or their website. Credit unions also offer CDs, sometimes with competitive rates for members.
Online banks typically offer the highest CD rates because they have lower overhead costs. Banks like Marcus, Ally, Discover, and Capital One 360 all offer CDs with terms ranging from three months to five years. You can compare rates across multiple banks using financial websites that track CD rates, though rates change frequently so check the issuer's site directly before opening.
When comparing CDs, look at the annual percentage yield (APY), the term length, and the early withdrawal penalty. A slightly higher rate on a five-year CD might not be worth it if you think you will need the money sooner.
How American Express savings compares to CDs
An American Express savings account makes sense if you want higher interest than a regular bank savings account but do not want to commit your money for a fixed period. The current rate is usually competitive, though it changes with market conditions.
A CD makes sense if you have money you will not need for a specific time—say, six months to five years—and you want to lock in the current rate. You sacrifice flexibility for certainty.
The choice depends on your situation. If you are saving for something with a firm deadline and want to know your exact return, a CD is the better tool. If you are building an emergency fund or saving for something that might happen sooner or later, a flexible savings account is safer.
What to know about American Express Bank products
American Express Bank is a separate entity from American Express the credit card company, though both are owned by American Express Company. You do not need an American Express credit card to open a savings account with them.
The bank is FDIC-insured, meaning deposits up to $250,000 are protected if the bank fails. This is the same protection you get at any other FDIC-insured bank, including banks that offer CDs.
American Express Bank also offers money market accounts and other deposit products, but none of them are CDs. If you are specifically looking for a certificate of deposit, you will need to open one at a different institution.
Frequently Asked Questions
Can I lock in an interest rate with American Express?
No. American Express Personal Savings has a variable rate that changes over time. If you want a locked-in rate, you need a CD from another bank. CDs may provide your rate for the full term, whether that is three months or five years.
Is my money safe in an American Express savings account?
Yes. American Express Bank is FDIC-insured, so deposits up to $250,000 are protected. This is the same protection that applies to CDs at other banks. Your money is safe even if the bank fails.
What happens if I need to withdraw money from a CD early?
You pay an early withdrawal penalty, which is usually a set number of months' worth of interest. The exact penalty depends on the CD's term and the bank's rules. This is why CDs work best for money you know you will not need before the maturity date.
Can I move money from an American Express savings account to a CD?
Yes. You can withdraw money from American Express at any time and deposit it into a CD at another bank. There is no penalty for withdrawing from the savings account. Just remember that once you open a CD, you cannot access that money without paying an early withdrawal penalty.
What is the minimum deposit for an American Express savings account?
American Express does not require a minimum deposit to open a Personal Savings account. You can start with any amount. Rates and terms may vary, so check their website for current details.