American Express: Not Just for Credit Cards Anymore

When you say the name American Express, most people think of a credit card. That’s not surprising, considering there’s over $620 billion worth of purchases made on American Express cards each year, according to their website. Now, they’re also offering a High-Yield Savings account and CDs at very competitive rates.

The American Express High-Yield Savings account boasts a 1.00% APY, with absolutely no fees and no minimum balance requirements. The nice thing about this account is that you can easily link it up to three of your accounts from external banks, so there's no need to switch banks. If this 1.15% APY beats the savings APY at your regular bank, you can simply transfer money back and forth between this American Express savings account and your other bank accounts.

If you’re looking for something longer-term with a higher APY, American Express is offering a 3-year CD at 1.45%, a 4-year CD at 1.60%, and a 5-year CD at 2.15%. Before you open one of these CDs, you should be sure that you can invest it for the full-term of the CD. If you open an American Express CD with a term of more than 12 months, you can be charged a penalty of up to 6 months interest if you withdraw your principal or close the CD. However, since there is no minimum balance requirement to open one of these CDS, so you can invest as little or as much as you feel comfortable with.

These rates are some of the most competitive on the market today. While it's possible to find a slightly higher APY, the brand-recognition of America Express, the no minimum deposit, and the no maintenance fees make these accounts enticing. Just be sure to read all of the terms and conditions before opening the account, like you would for any financial product.