American Express does not offer a high-yield checking account

American Express Bank does not have a checking account product at all, whether standard or high-yield. Amex operates primarily as a credit card and charge card company. If you hold an Amex credit card, you can set up online bill pay through your card account, but that is not the same as a checking account with a routing number, debit card, and the ability to receive direct deposits.

If you are looking for a high-yield checking account, you will need to look at banks other than American Express. Online banks, credit unions, and some traditional banks offer checking accounts with interest rates that currently range from around 4% to 5.35% annual percentage yield (APY), depending on the bank and the balance requirements. The rates change frequently, so you should check current rates directly with each bank before opening an account.

Key Takeaways

  • American Express Bank does not offer any checking account product, high-yield or otherwise.
  • Amex credit card holders can use bill pay through their card account, but this is not a checking account and does not earn interest.
  • High-yield checking accounts are available from online banks, credit unions, and some regional banks, not from American Express.
  • Interest rates on high-yield checking accounts vary by institution and change regularly, so you should compare current rates before opening an account.
  • High-yield checking accounts often require a minimum balance or monthly direct deposit to earn the advertised rate.

What American Express Bank actually offers

American Express Bank operates a limited product line focused on savings accounts and money market accounts, not checking. The bank offers a high-yield savings account and a money market account, both of which pay interest on your balance. These products are available to customers who open accounts online, and they do not require a physical branch visit.

If you already use an Amex credit card, you cannot link a checking account to it through American Express Bank. You would need to open a separate account at a different financial institution if you want checking services. Some people use their Amex card for spending and a checking account elsewhere for bill pay, direct deposits, and everyday transactions.

Where to find high-yield checking accounts

Online banks are the most common source of high-yield checking accounts. Banks like Marcus, Ally, and others offer checking accounts with rates that compete with their savings products. These banks have no physical branches, which allows them to keep overhead low and pass higher rates to customers.

Credit unions sometimes offer high-yield checking accounts to their members, though rates and terms vary widely by credit union. You typically need to join the credit union first, which may require living or working in a specific area or meeting other membership criteria. Some credit unions offer rates as high as 5% or more on checking balances, but these often come with conditions like a minimum number of debit card transactions per month or a cap on the balance that earns the high rate.

A few traditional banks and regional banks also offer high-yield checking, though they are less common than online options. These accounts may require higher minimum balances or have other requirements to earn the stated rate.

How high-yield checking accounts work

A high-yield checking account functions like a regular checking account: you receive a debit card, can set up direct deposit, write checks, and make transfers. The difference is that the bank pays you interest on your balance, usually calculated daily and deposited monthly. The interest rate is expressed as an annual percentage yield (APY).

Most high-yield checking accounts come with conditions. Some require a minimum balance to earn the full rate—if your balance drops below that threshold, the rate may drop to a much lower level or zero. Others require a certain number of debit card transactions per month, such as 10 or 15. Some cap the amount of your balance that earns the high rate; for example, a bank might pay 5% APY on the first $25,000 and a lower rate on anything above that.

Read the account terms carefully before opening. The advertised rate is only what you will earn if you meet all the conditions. If you cannot consistently meet those conditions, the actual rate you earn will be lower.

Comparing checking accounts to savings accounts

A high-yield checking account and a high-yield savings account are different products, though both earn interest. A checking account gives you a debit card and the ability to write checks, making it suitable for everyday spending and bill pay. A savings account is designed for money you are setting aside and typically limits the number of withdrawals you can make per month.

Interest rates on high-yield checking and high-yield savings accounts are often similar, but checking accounts may have more conditions attached. If you need both a place to spend money and a place to earn interest, you might open a high-yield checking account for your main account and a high-yield savings account at the same bank or elsewhere for money you want to keep separate.

American Express Bank offers high-yield savings and money market accounts but not checking, so if you want both an Amex savings product and a checking account, you would need to open the checking account elsewhere.

What to look for when choosing a checking account

Start by comparing the APY and the conditions required to earn it. A 5% rate that requires 15 debit card transactions per month may not be realistic for you if you rarely use your debit card. A 4% rate with no transaction requirement might be a better fit.

Check whether there is a cap on the balance that earns the high rate. Some accounts pay 5% on the first $25,000 and 0.01% on anything above, which makes a big difference if you have a large balance. Others pay the full rate on all your money.

Look at the minimum balance requirement. Some accounts require $500 or $1,000 to open; others have no minimum. If your balance falls below the minimum, you may lose the high rate or be charged a fee.

Confirm that the bank is insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance protects your money up to $250,000 per account holder per bank if the bank fails. Most online banks and traditional banks are FDIC-insured, but it is worth verifying.

Frequently Asked Questions

Can I use an American Express credit card as a checking account?

No. An Amex credit card is a payment tool, not a checking account. You can use it to make purchases and pay bills, but you cannot receive direct deposits, write checks, or earn interest on a balance. If you need checking services, you must open an account at a bank.

Does American Express Bank pay interest on any accounts?

Yes. American Express Bank offers a high-yield savings account and a money market account, both of which pay interest. However, these are savings products, not checking accounts. You cannot use them to write checks or receive direct deposits.

What is the difference between APY and interest rate?

APY (annual percentage yield) includes the effect of compounding, while the interest rate does not. If a bank compounds interest daily and deposits it monthly, the APY will be slightly higher than the stated interest rate. Banks are required to show you the APY so you can compare accounts fairly.

Do I need to keep a minimum balance in a high-yield checking account?

It depends on the bank. Some high-yield checking accounts have no minimum balance requirement. Others require $500, $1,000, or more to open the account or to earn the advertised rate. If your balance falls below the minimum, you may lose the high rate or be charged a monthly fee. Always check the account terms before opening.

Can I move money between a high-yield checking account and a savings account?

Yes. If both accounts are at the same bank, you can usually transfer money between them online instantly or within one business day. If they are at different banks, transfers typically take one to three business days. Some banks limit the number of transfers you can make from a savings account per month, but checking accounts usually have no transfer limits.