Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
American Express National Bank (Member FDIC) offers an excellent savings account rate compared to traditional banks. The best online banks (including American Express) are able to offer high savings rates because they have fewer overhead costs than their brick-and-mortar counterparts. As a result, online banks can pass those savings on to customers with better rates and lower fees.
American Express High Yield Savings Account Rates
The American Express® High Yield Savings Account – Product Name Only pays a competitive American Express® High Yield Savings Account – APY APY, which is significantly higher than the average savings account interest rate.
There are no monthly service fees or minimum deposit requirements, and you can earn the rate on any account balance up to $5 million. (Although keep in mind that accounts are only insured by the FDIC for up to $250,000, or $500,000 for joint accounts.)
American Express High Yield Savings Account Rates Pros and Cons
ProsCons
Competitive APY
Interest compounds daily
No minimum opening deposit or account balance requirements
No monthly service fee
No excess transaction fee
24/7 customer support
Higher rates available at some other online banksNo physical branch locationsDoesn’t come with an ATM card
How American Express High Yield Savings Account Rates Compare
American Express High Yield Savings Account vs. Discover Savings
With a Discover Online Savings Account – APY APY, the Discover Online Savings Account – Product Name Only pays a slightly higher rate than American Express. But the rates are so close that choosing Discover might only mean earning a few extra dollars per year, depending on your balance.
Interest compounds daily on both accounts, and there are no monthly bank maintenance fees, minimum opening deposits, or excess transaction fees (some banks charge a fee of about $10 if you make more than six monthly withdrawals).
One notable difference involves mobile check deposits. With Amex, you can deposit up to six checks totaling $50,000 within any seven-day period, with a $25,000 individual check limit. This is a more generous limit than many online banks offer. Discover doesn’t specify limits in its online disclosures, however, a call to customer support revealed that new customers might start with a monthly limit of about $500.
Choosing between the two accounts might be tricky unless you want more flexibility regarding mobile deposits — in which case Amex is the clear winner.
American Express High Yield Savings Account vs. Capital One 360 Savings
While Capital One is primarily an online bank, it has branches in a handful of states and cafés in more than a dozen states (the cafés are a cross between a bank branch and a coffee shop). American Express doesn’t have any branches.
Capital One 360 Performance Savings – Product Name Only pays Capital One 360 Performance Savings – APY APY on all balance tiers, which is a little higher than what Amex pays. The interest in a Capital One account compounds monthly, while Amex’s interest compounds daily. Depending on how much is in your account, this may or may not make a significant difference.
Neither account has monthly fees, initial deposit requirements, or a minimum balance to earn the APY. Capital One offers live support Sunday to Saturday from 8 a.m. to 11 p.m. ET. You can reach live customer support 24/7 with American Express.
The two banks offer similar rates, fees, and features, so choosing one can be difficult. Ultimately, customers who live near a Capital One branch or café might choose it over American Express for the convenience of in-person help and the option to make cash deposits. American Express may be a better choice if you prefer 24/7 customer support.
The bottom line: The best high-yield savings accounts offer competitive rates and low fees, and the American Express® High Yield Savings Account – Product Name Only delivers on both counts: You can earn American Express® High Yield Savings Account – APY APY while paying zero monthly fees. With no opening deposit or minimum balance requirements, the account may be especially attractive to new savers. Still, consider looking elsewhere if you want higher returns — some online banks are paying up to Betterment Cash Reserve – APY APY right now.
Why You Should Trust Us: How We Reviewed American Express High Yield Savings Account
We rated the American Express® High Yield Savings Account – Product Name Only using Insider’s bank account methodology. For savings accounts, we consider minimum deposits, monthly service fees, interest rates, customer support, mobile apps, and ethics.