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APY GUY: Maximize Your Savings & Earnings

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American Express

American Express CD Rates – Now up to 4.25% APY!

Lauren Graves
January 31, 2023

image credit: Unsplash, Christin Hume

American Express National Bank is the 25th largest bank in the U.S. by asset size with just over $130 billion.

Known by most as a credit card company—American Express—this financial corporation was approved to become a commercial bank with the name American Express National Bank in 2008 and has been a part of the digital banking sector ever since.

Within this relatively short period of time, American Express National Bank has racked up over $78 billion in consumer deposits.

Their current deposit account suite consists of a personal high yield savings account and 7 standard term CDs (certificates of deposit).

To learn more, read our complete review of their personal savings account and certificate of deposit products below.

American Express CD Rates + Account Details

American Express’s CD (certificate of deposit) rates rose significantly in 2022 but have yet to increase this year.

All of their CDs come with no monthly maintenance fees and no minimum deposit requirements.

American Express CD Rates

CD TermAPY
12 months4.25%
18 months1.00%
24 months4.25%
36 months1.15%
48 months1.20%
60 months3.75%
APY = Annual Percentage Yield

To put these yields in perspective, the national average for a 12 month CD and a 60 month CD sit at just 1.28% and 1.21% APY, respectively according to recent FDIC data.

American Express’s certificates of deposit still feature ascending rates with ascending terms – meaning the longer you lock up your funds, the higher the rate you will receive. While this is standard and to be expected in normal market conditions, it is not what we presently see with a number of online banks and credit unions.

As mentioned, there is no minimum deposit or balance requirement to open and maintain an American Express CD. Any positive balance will earn the fixed APY on the account and you’ll never be charged a fee. You just need to deposit funds within 30 days of being approved for an account. 

Dividends are compounded daily and credited monthly. Your interest will default to being deposited back into the certificate account, but you can choose instead to have it transferred automatically to your:

1) American Express Personal Savings account,

2) transferred automatically to a linked external account, or

3) mailed to you by check monthly, quarterly, or annually.

Partial withdrawals are not permitted. Early withdrawal policies for this bank are strict and the fees high, so do your best to wait until your certificate matures to withdraw funds or do so within the permitted window. There is a 10 day grace period within which you may deposit more money after issuance and make changes to your account after renewal. Here are all possible early withdrawal charges:

  • 90 days’ interest for terms of less than 12 months
  • 270 days’ interest for terms greater than 12 and less than 48 months
  • 365 days’ interest for terms greater than 48 and less than 60 months
  • 540 days’ interest for terms greater than 60 months

Keep in mind also that American Express reserves the right to deduct the difference from your principal if your CD does not have enough interest to pay the early withdrawal fee.

Personal Savings Account Details + APY

The personal high yield savings account by American Express National Bank comes with zero monthly maintenance fees, and no minimum balance or deposit requirements. American Express Bank is member FDIC and all consumer deposits are federally insured up to the applicable limits.

American Express Personal Savings Account APY

Minimum BalanceAPY
$03.30%
APY = Annual Percentage Yield

To put this offer in perspective, the current national average for savings accounts sits at just 0.33% APY, however, a number of FDIC-insured online banks are now offering rates above 4.00% APY.

This is a variable rate account that can change at any time and without notice.

Fees, Minimum Balance Requirements, and Compounding Interest

The American Express Personal Savings account does not charge monthly maintenance fees nor does it require an average daily minimum balance. To earn the advertised interest rate and APY, you just need to maintain a balance of $1 or more.

There is no minimum opening deposit required either, but accounts that remain with a $0 balance for 180 days will be closed. These flexible terms put this savings product within reach of just about anyone, regardless of net worth or income.

Dividends on this high-yield account are compounded daily and credited monthly to your account.

You can make no more than 6 withdrawals or deposits into this account per month, per federal regulation D.

How to Open a Savings Account

The online application is a 4-step process that can be completed in minutes.

The account opening process is simple and straightforward. To get started, navigate to the high yield savings account page on the American Express Bank website (link above).

From here you will click on the blue “Apply” button, then it is a four step process that can be completed in minutes. If you have already begun the process you will also be able to access your saved application here.

The steps are:

  1. Account set up.
  2. Going through the terms and conditions.
  3. Funding the account.
  4. Online access set up.

For step 1, you will need the following information:

  1. Full name and date of birth (drivers license)
  2. Address
  3. Phone number
  4. Email
  5. Social security number

Once you arrive at step 3 you will need a few pieces of information from the bank in which you will be funding the savings account.

This information includes:

  1. Routing number of bank
  2. Your account number

Once your account is activated and funded you’ll be ready to start earning interest on your balance. As time goes on you will likely need access to these funds. You can learn more about your account access and monitoring your funds below.

Accessing and Monitoring your Funds

American Express is currently in the testing phase of offering access to American Express Savings accounts in the Amex App (for credit cards). Access is limited to customers who have both an American Express Savings account (High Yield Savings or CD) and an American Express Card Account who have successfully connected their accounts for one-click access. If you’d like instructions to set this up go here.

For moving funds through their online website, you’ll want to link an external bank account. American Express allows you to link up to 3 external bank accounts. If you initiate this through American Express, this will take 3 or more business days. If you initiate this through the bank from which funds are being pulled, this will take just 1 or 2 business days.

A standard verification process will take place where American Express will send you small micro payments (typically two) in which you will then confirm to complete the syncing of your accounts. After this is completed, you’ll be able to transfer or deposit funds from or into your American Express savings account. Just keep in mind it generally takes one to three business days for new funds to be reflected in your account.

Banking Experience + Customer Satisfaction

You won’t be able to withdraw or deposit savings account funds at in-network ATMs because an American Express Personal Savings account does not come with an ATM card and there is no Amex checking account. So really, these ATMs are for credit card users only. 

The digital bank’s customer satisfaction is rather high. Out of 266 reviews on DepositAccounts, American Express Bank scored a rating of 4. Many reviewers go out of their way to mention the superior customer service—helpful representatives, reasonably short wait times, easy process, etc.—they have received with this bank and express their appreciation for the user-friendly online banking platform. Most have only good feedback for the company.

To contact customer service—available 24 hours a day, 7 days a week—call 1-(800)446-6307, fax 1-(800)-542-0779, or send checks/correspondence to the below address: American Express National Bank P.O. Box 30384 Salt Lake City, Utah 84130

Questions and Answers

Still have questions regarding American Express’s deposit accounts?

Here are some commonly asked questions as well as our answers from consumers around the web.

Does Amex have a money market account?

No, American Express does not offer a money market account at this time.

They do, however, have an online savings account which is similar in many ways.

Is American Express FDIC-insured?

Yes. American Express is federally insured by the FDIC (certificate #27471).

Consumer deposits held at American Express are federally insured up to $250,000 per depositor and $500,000 for joint accounts.

Filed Under: CD Rates Tagged With: American Express

Serve Prepaid Debit Card by American Express Review

Lauren Graves
April 30, 2021

image credit: serve.com

The Serve Prepaid Debit Card by American Express is an alternative to traditional debit cards and credit cards that can encourage responsible money management. This makes it great for adults and even better for teens. Many parents use this prepaid debit card to give their teens the financial independence they desire with the added protections of a prepaid account.

This product is unlike other debit cards for kids in a few important ways. We’ll go over these as well as the advantages and disadvantages of the Serve Prepaid Debit Card here.

Who’s it For?

Average age: 13-18

Good candidate: teens who are ready for a real checking account that want spending freedom 

Features and Benefits

A Serve Prepaid Debit Card is not specifically designed for use by kids and teens. Only users 18 years old or older are eligible to open their own account. However, this prepaid debit card is great for giving teens relative financial independence.

If a parent is getting this card for their child, they need to add a sub account for each child. In order to be added to a sub account, a user must verify that they are at least 13 years old. Parents can add up to four sub accounts to their account.

Please note that Vermont residents are not eligible for this card and that some states require account holders to be 19 years old rather than 18.

For Parents

Parents are the sole owners and account managers for Serve accounts. This means that they alone are responsible for reloading their kids’ prepaid debit cards from their main funding account.

Most reloads are free and there are many ways to add money to an account. Just a few include direct deposit, ACH transfer, and cash reloads. Please see “How to Sign Up” for a complete list of options for account funding. 

Cash reloads at in-network retailers use barcodes to instantly transfer money into an account.

There are several ways parents can control how their teens are able to use their card. They can: 

  • Set daily spending limits
  • Enable or disable Serve card use
  • Decide whether to permit or allow international purchases
  • Restrict sub account user account access by freezing or closing the account
  • Permit or prohibit ATM access 
  • Enable low balance alerts for themselves
  • Enable text alerts for sub account users for low balances and balance updates

All of these changes can be made from the app and reversed at any time.

Primary account holders can also set up to six savings goals for their account. Only account holders are eligible to create these goals, but sub account holders can contribute to them. All goal balances are held separately from the main account and debit card account (meaning users can’t use their Serve cards to spend goal money without transferring it).

To use the money from a goal, the funds need to be transferred from the goal back to the main account. From there, the funds can be added to sub accounts as desired. Parents may choose to set these savings goals for their children to help them learn good habits or contribute to them themselves.

There is no option for parents to reward their kids with bonuses for meeting savings goals or pay interest on money saved built into a Serve account.

For Kids

Sub account users are not able to fund their accounts themselves. To get more money on their card, they must request money from their parent, the primary account holder.

This debit card can be used almost anywhere American Express is accepted. Although American Express cardholders experienced issues with finding places to accept their cards in the past, increasingly more merchants are adding AmEx to their list of accepted card issuers (in fact, an estimated 99% of merchants accept AmEx).

Sub account holders can use their card online and in-person or withdraw cash from ATMs (if the primary account holder has chosen to allow ATM access). There are over 30,000 MoneyPass ATMs that accept American Express transactions at no cost. Withdrawals from out-of-network ATMs may cost up to $2.50 each. Alternatively, kids can withdraw cash from their Serve account using Cash Pickup Powered by Ria.

Another way it is possible for a sub account user to use their money is through Serve Money Transfer Powered by Ria. Using this feature, sub account holders can send money from their account to another Serve account for domestic cash pickup. All cash pickups can be made at Walmart stores within the U.S. and Puerto Rico.

These Serve cash pickup and money transfer capabilities are available to all Serve account users who have activated their cards. To initiate these transfers, a sub account user must select “Money Out” from their American Express account and select either Serve Cash Pickup or Serve Money Transfer. 

These transfers incur fees. Each Serve Money Transfer costs between $4.99 and $16.99, with higher fees assessed on greater transfer balances, and each Serve Cash Pickup costs between $3.49 and $9.49.

It is not possible to overdraw an account. However, users are charged $0.75 every time their card is declined at an ATM, in- or out-of-network (a card may be declined for insufficient funds, exceeding ATM withdrawal limits, or entering a PIN incorrectly). Sub account users may receive low balance alerts to prevent attempts to overdraw if their parents choose this.

Serve users with sub accounts are encouraged to save but are not able to set savings goals for themselves within the app. Serve sub account users may freeze their accounts if they have lost their card or suspect it has been stolen. Both primary account holders and sub account holders may request replacement cards

How Much Does the Serve Prepaid Debit Card Cost?

Fees: no fees for electronic reloads, no fees for cash reloads at in-network retailers, no fees for inactivity, up to $3.95 for cash reloads at out-of-network retailers, $2.50 for out-of-network ATMs

There is a $6.95 monthly fee for all Serve accounts. This is a monthly maintenance fee that is assessed regardless of balance. This fee can be avoided by setting up direct deposits that are equal to at least $500 per month. 

Benefits of Serve Over Competitors

There are so many reasons to choose Serve over other options if you’re the parent of a teenager.

The Serve Prepaid Debit Card offers users many more ways to fund their accounts than the average kids’ debit card account. For example, they can set up direct deposit, which many competitors do not allow. 

Compared to similar products, the Serve card is inexpensive. There are no subscription fees and besides an avoidable monthly service fee, few charges at all. There are also no per-kid charges to worry about, which is nice for larger families.

The Serve card can also be reloaded with cash at no cost. This action can be done for free at more than 45,000 retailer locations.

Being an American Express customer also has other advantages in general, and these are extended to all Serve users. For example, AmEx cardholders—including Serve users—receive discounts at many retailers and restaurants. You can add specific offers to your American Express account to get the most benefit from this complimentary feature.

Other (free) American Express benefits offered to Serve customers include: 

  • Roadside Assistance – a dispatch hotline open 24/7
  • Purchase Protection – 
  • Emergency Assistance – 24/7 emergency coordination assistance for medical, financial, and legal emergencies
  • American Express Experiences

Potential Drawbacks

Though the Serve Prepaid Debit Card is definitely an all-around great option for most, there are a couple of potential disadvantages to be aware of with this product.

For example, this is not strictly a kids’ account. If you are looking for a kids’ debit product that comes with educational resources and a comprehensive platform designed to teach kids financial literacy, the Serve card may not check all of your boxes. This is a fairly standard checking account that doesn’t really attempt to simplify money management, which may be either an advantage or a disadvantage for your family.

Another thing that the Serve card lacks is flexibility for sub account users. To name a few of these limitations: teens cannot fund their own accounts, set their own savings goals, donate or invest their money, or use bill pay features.

Consumer Sentiment

Many customers with Serve debit cards speak highly of their experiences with the product. For the vast majority of users, this card is easy to reload and convenient to use. Customer service is said to be generally satisfactory when addressing concerns, but some users have called it inconsistent. 

This product has a rating of about 3.7 stars out of 5 on ConsumerAffairs. Most complaints have to do with seemingly random account closures and slow processing times for refunds and deposits. If you do get this card, be aware that these issues exist for some users.

You can reach customer service for Serve users by calling 1-800-954-0559. 

The American Express mobile app has a rating of 4.2 out of 5 stars on Google Play and 4.9 out of 5 stars in the App Store.

Is It Safe?

The Serve American Express Prepaid Debit account is protected by up to $250,000 of FDIC insurance. All accounts are also covered by Fraud Protection that monitors for suspicious activity and dismisses responsibility for unauthorized transactions.

In addition, users are prohibited from using their cards to make purchases that are considered unsafe, such as transactions involving alcohol, tobacco, or gambling.

The Serve Pay Bills Guarantee ensures that you never have to pay late fees on your bills. If a bill does get paid late, American Express covers the charges as long as you submitted payment at least six business days before it was due. You can set up bill pay reminders for your account to avoid this.

How to Sign Up

There are two ways to sign up for a Serve account, if you meet eligibility requirements (18 years old or older in most states, 19 in Alabama and Nebraska): You can register directly online or purchase a temporary Serve card in person at a participating retailer such as Walmart, Dollar General, or Walgreens. 

Temporary Serve cards are just reloadable prepaid cards that can be loaded with cash and used at retailers that accept American Express. You must load at least $20 onto the card and may not exceed $500. These do not have checking accounts or online accounts and cannot be used at ATMs. 

If you have a temporary Serve card, you can register it online to set up a Serve account. If you choose to register directly online without a temporary card, you will just go online and verify your identity and your Serve card(s) will come in the mail shortly.

Once your account is verified, you can fund it and set up your sub account(s). Every sub account user gets their own card. There are a number of ways to easily fund your account. You can:

  • Set up direct deposit to automatically add your or your child’s earnings to the account
  • Link an external checking or savings account 
  • Deposit cash for free at a participating retailer (funds will be available immediately)
  • Link a debit card or an American Express credit card
  • Deposit a check through the American Express mobile app
  • Request money from another Serve account

One nice perk to make note of is that you can get direct deposit funds up to two days faster with a Serve account. Rather than wait for your electronic direct deposit to process automatically, you can get access to your paycheck early if your employer submits payment information to your bank ahead of schedule.

Final Thoughts

There are many advantages to being a customer with a prestigious bank like American Express, and there are many advantages to the Serve American Express Prepaid Debit Card as well. This account charges fewer fees than many of its competitors and offers many account protections and benefits.

Serve account holders are able to control their sub accounts in a variety of ways, but sub account holders may feel somewhat limited by their options (e.g. no option to set savings goals, invest their money through the app, etc.). With that said, this kid-friendly debit card gives users real-world experiences in a neat package that is easy to navigate.

Filed Under: Debit Cards for Kids Tagged With: American Express

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