American Express is not a traditional checking account provider
American Express does not offer a standard checking account with a debit card and monthly statements the way a bank does. What American Express offers through its banking division is a savings account and a money market account — both designed to hold money and earn interest, not to process everyday payments.
If you are looking for a place to write checks, use a debit card at the grocery store, or set up automatic bill payments, American Express banking products will not do that. You would need a checking account from a traditional bank or credit union for those functions. American Express credit cards are a separate product entirely and do not replace a checking account.
The question of whether American Express is "good" depends on what you actually need. If you want a high-yield savings account with no monthly fees, it may be worth comparing. If you need checking, it is not an option.
Key Takeaways
- American Express offers savings and money market accounts, not checking accounts, so you cannot write checks or use a debit card.
- These accounts are designed to hold money and earn interest, and they typically have no monthly maintenance fees.
- You will still need a separate checking account from a bank or credit union for everyday payments and bill pay.
- Interest rates on American Express savings accounts vary and change over time, so compare current rates before opening.
What American Express banking accounts actually do
American Express operates a bank that holds deposits and pays interest on savings. The main products are a savings account and a money market account. Both are deposit accounts — you put money in, it sits there, and you earn interest on the balance.
Neither account comes with a debit card or checkbook. You cannot make purchases with them. You cannot set up automatic bill payments from them the way you would from a checking account. What you can do is transfer money out to another bank account you own, or withdraw cash at an ATM (though ATM access varies by account type and may have limits).
These accounts are FDIC-insured, which means if American Express Bank fails, your deposits up to $250,000 are protected by federal insurance. That protection is the same whether you bank at American Express, Chase, or a small local bank.
How American Express savings accounts compare on fees and interest
American Express savings accounts typically charge no monthly maintenance fee, no minimum balance requirement, and no fee to open or close the account. That is a genuine advantage over some traditional banks, which still charge monthly fees even when your balance is low.
Interest rates change frequently and vary based on what the Federal Reserve does with its benchmark rate. American Express has historically offered competitive rates on savings accounts, but "competitive" means different things at different times. A rate that is high today may be average in six months. You should check the current rate on the American Express website and compare it to rates at other online banks before deciding.
Money market accounts from American Express typically require a higher opening deposit than savings accounts — sometimes $2,500 or more — and may offer a slightly higher interest rate in exchange. The trade-off is that you have limited check-writing or transfer privileges on some money market accounts, though American Express money market accounts are usually more flexible than traditional ones.
When an American Express savings account makes sense
An American Express savings account works well if you already have a checking account elsewhere and you want a separate place to park money that earns interest. Many people use a savings account at one institution and a checking account at another — there is no rule that says they have to be at the same bank.
This setup is useful if you want to keep your spending money separate from your savings, or if you want to earn interest on money you are not touching regularly. You transfer money from checking to savings when you want to save it, and transfer it back when you need it.
An American Express savings account is also worth considering if you value having no monthly fees and no minimum balance. Some people prefer the simplicity of an account that does not penalize you for having a small balance or charge you just for existing.
What you still need to do separately
You will need a checking account from another bank or credit union to handle everyday payments. This is where you will receive your paycheck, pay your bills, use a debit card, and write checks if you still need to.
Many people open a checking account at a large bank like Chase or Bank of America, or at a credit union. Others use online banks like Ally or Charles Schwab, which offer checking accounts with no fees and no minimum balance. The choice depends on whether you value in-person branches, customer service by phone, or low fees.
Once you have a checking account, you can link it to your American Express savings account. Then you can transfer money between them online whenever you want — usually within one business day.
How to move money in and out of an American Express account
To fund an American Express savings account, you typically link it to a checking account at another bank. You then initiate an ACH transfer — an electronic transfer that moves money from your checking account to your American Express account. This usually takes one to two business days.
To withdraw money, you can transfer it back to your checking account using the same ACH method, or you can request a check be mailed to you. Some American Express accounts allow ATM withdrawals, but there may be limits on how many you can make per month or how much you can withdraw at once.
You cannot deposit cash directly into an American Express account the way you can at a bank branch. If you receive cash and want to deposit it, you would need to deposit it into your checking account first, then transfer it to American Express.
American Express credit cards are different from banking accounts
Do not confuse an American Express savings account with an American Express credit card. A credit card is a borrowing tool — you charge purchases to it, and you pay the bill later. A savings account is a deposit account — you put your own money in, and it sits there earning interest.
Some people have both: an American Express credit card for purchases and rewards, and an American Express savings account for holding money. But they serve completely different purposes. The credit card does not replace a checking account, and the savings account does not replace a credit card.
Frequently Asked Questions
Can I pay bills directly from an American Express savings account?
No. American Express savings accounts do not come with bill pay features. You would need to transfer money to a checking account first, then pay bills from there. This adds an extra step but is not difficult — transfers usually take one to two business days.
Does American Express offer any kind of checking account?
American Express Bank does not offer a traditional checking account with a debit card or checkbook. If you need checking, you will need to open an account at a different bank or credit union.
What happens if American Express Bank fails?
Your deposits are protected by FDIC insurance up to $250,000 per account type. This means if the bank fails, the federal government guarantees you will get your money back up to that limit. This protection is the same at any FDIC-insured bank.
Can I use an American Express savings account as my main account?
Not if you need to pay bills, use a debit card, or receive direct deposits. You would still need a checking account for those things. An American Express savings account works best as a secondary account for holding money and earning interest.
How do I open an American Express savings account?
You can open one online through the American Express website. You will need to provide personal information, verify your identity, and link a checking account at another bank to fund it. The process usually takes a few minutes, and your account opens the same day or the next business day.