American Express is not a savings account—it's a money market account with different rules
American Express offers a money market account, not a traditional savings account. The distinction matters because money market accounts come with check-writing and debit card access, but they also cap how many withdrawals you can make per month. If you want a place to park money and leave it alone, American Express works. If you plan to move money in and out frequently, a traditional savings account may fit better.
American Express money market accounts are held through American Express Bank, FSB, which is FDIC-insured up to $250,000. That means your deposits are protected if the bank fails. The account earns interest on your balance, and the rate changes based on what the Federal Reserve does with interest rates—it is not locked in.
Whether American Express is "good" depends on what you need the account to do. If you want a high interest rate with no monthly fees and no minimum balance, it can work. If you need unlimited withdrawals or a debit card you can use everywhere, you should compare it to other options first.
Key Takeaways
- American Express money market accounts earn interest and are FDIC-insured, but they limit you to six withdrawals per month (rules vary by account type and may change).
- There is no monthly fee and no minimum balance requirement, which makes the account cheaper to hold than many traditional savings accounts.
- The interest rate is variable, meaning it moves up and down with market conditions—you do not lock in a rate when you open the account.
- You can write checks and use a debit card, but frequent transfers may trigger withdrawal limits or account restrictions.
- American Express does not offer a traditional savings account; if you need one, you will need to look elsewhere.
How the interest rate works and what you actually earn
American Express publishes its money market rate on its website, and it changes whenever the bank decides to adjust it. The rate is not tied to a specific index—the bank sets it based on market conditions and competition. This means you cannot predict what you will earn six months from now.
Interest is compounded daily and paid monthly. That means the bank calculates interest on your balance every day, adds it to your account once a month, and then calculates the next month's interest on the new, higher balance. Over time, this compounds and grows your money faster than simple interest would.
To know whether the rate is competitive, compare it to other online banks' money market rates on the day you are deciding. Rates change frequently, and what is high one month may be average the next. Bankrate, DepositAccounts, and the banks' own websites all show current rates.
Withdrawal limits and how they affect you
American Express money market accounts typically allow six withdrawals or transfers per month. This rule comes from federal banking regulations, though some banks have relaxed or removed it in recent years. Check your account agreement to confirm the current limit, because rules change and vary by account type.
A withdrawal counts as a transfer to another bank account, a check you write, or a debit card purchase—basically any time money leaves the account. Deposits do not count against the limit. If you exceed the limit, the bank may charge a fee, restrict your account, or close it.
This limit is the biggest reason a money market account may not work for you. If you move money frequently—paying bills, transferring to checking, moving savings around—you will hit the cap. A traditional savings account at a different bank, or a checking account, gives you unlimited access.
Fees, minimums, and what it costs to hold the account
American Express money market accounts have no monthly maintenance fee and no minimum balance. You can open an account with $1 and keep it open with $1, and you will not be charged for the privilege. This is rare among brick-and-mortar banks, though common among online banks.
The only fees you might encounter are overdraft fees (if you write a check for more than your balance) and fees for exceeding the withdrawal limit. Both are avoidable if you manage the account carefully. Read the fee schedule on American Express's website to see the exact amounts.
Because there is no minimum balance, you can use this account as a true emergency fund—money you keep separate and do not touch. The lack of fees means the interest you earn is not eaten away by account charges.
How American Express compares to traditional savings accounts
| Feature | American Express Money Market | Traditional Savings Account (Online Bank) | Traditional Savings Account (Local Bank) |
|---|---|---|---|
| Interest rate | Variable, currently competitive | Variable, often similar | Variable, usually lower |
| Monthly fee | None | None (most online banks) | $5–$15 (common) |
| Minimum balance | None | None (most online banks) | $500–$2,500 (common) |
| Withdrawal limit | Six per month (typical) | Unlimited | Unlimited |
| Check writing | Yes | No | No |
| Debit card | Yes | No | No |
The main trade-off is access versus rate. American Express gives you a competitive rate and check-writing ability, but limits how often you can withdraw. A traditional savings account gives you unlimited access but usually a lower rate and sometimes monthly fees.
If you are comparing American Express to another online bank's savings account, the rates will be similar and both will have no fees. The difference is that American Express's account has check-writing and a debit card, while most savings accounts do not. Whether that matters depends on how you plan to use the account.
When American Express makes sense and when it does not
American Express works well if you want to save money and leave it alone. The rate is competitive, there are no fees, and you can access your money when you need it—just not constantly. It is a good fit for an emergency fund, a down payment fund, or any goal where you are adding money regularly but not withdrawing it.
American Express does not work well if you move money frequently. If you pay bills from savings, transfer money between accounts multiple times a month, or use savings as a working account, you will hit the withdrawal limit. In that case, a checking account or a traditional savings account with unlimited access is better.
American Express also does not work if you need a may provide rate. The interest rate changes, so you cannot lock in a rate for the future. If you want certainty, a certificate of deposit (CD) at any bank offers a fixed rate for a set term.
How to open an account and what to expect
You can open an American Express money market account online at americanexpress.com. You will need your Social Security number, a valid ID, and a way to fund the account (a bank transfer or a check). The process takes about 10 minutes.
Once you open the account, you can deposit money by transferring from another bank account or by mailing a check. Transfers from other banks usually take one to three business days. You can start earning interest immediately, even while the transfer is in progress.
American Express will send you a debit card and checks in the mail. The debit card typically arrives within 7 to 10 business days. Checks take longer, usually 10 to 14 days. You can use the debit card right away if you set up a PIN online.
Frequently Asked Questions
Can I use the debit card at any ATM?
American Express debit cards work at ATMs that accept American Express, which is fewer than ATMs that accept Visa or Mastercard. You may have to pay an out-of-network fee if you use an ATM that is not part of the American Express network. Check the American Express website for a list of participating ATMs in your area before opening the account.
What happens if I exceed the six withdrawal limit?
If you go over the limit, American Express may charge a fee (usually $10 per excess withdrawal) or restrict your account. In some cases, repeated violations can result in account closure. The exact consequence depends on your account agreement, so read it before you open the account.
Is my money safe if American Express Bank fails?
Yes. American Express Bank is FDIC-insured, which means deposits up to $250,000 are protected by the federal government. If the bank fails, the FDIC will return your money. This protection applies to each depositor at each bank, so if you have money at multiple banks, each account is covered separately up to $250,000.
Can I move money out whenever I want, or does the withdrawal limit stop me?
The withdrawal limit applies to all outgoing transfers, including moving money to another bank account. You can make six per month without penalty. If you need to move money out more often, you will either pay fees or need a different account type.
How does the interest rate compare to other banks right now?
Interest rates change constantly and vary by bank. On any given day, American Express's rate may be higher, lower, or the same as competitors. Check Bankrate or DepositAccounts to see current rates across multiple banks, then compare American Express to at least two or three others before deciding.