American Express Personal Savings Review

American express

Savings is important for everyone’s life. But maybe you don’t want to invest it for a long time.

In that case, a high-yield saving account or a certificate of deposit can be your best friends.

But with so many of them out there, choosing the right one is a struggle, right? Not anymore, here comes the American Express.

The American Express is a banking service company offers both of the accounts to you. In a high-yield savings account, you will get higher interest rates than conventional accounts.

A certificate of deposit offers an even higher interest rate than the former. Let us dig deeper.

American Express Personal Savings Review – Application Process:

The application process is pretty simple for both the high-yield savings account and certificate of deposits.

You would have to give general information, such as your name, date of birth, address, contact number, driver’s license number, social security number etc.

You are allowed to open your account through electronic transfer from your bank or by mailing a check.

In the case of electronic transfer, American Express will send two small amounts of deposits to your entered bank for verification purposes. If it is successful, they will send you instructions over email to confirm your account and complete the transfer. Within a week after your account is active, American Express will send you a welcome kit.

Key Features:

Varying Interest Rates:

The high-yield savings account has a higher interest rate than conventional ones. On the other hand, a certificate of deposit has an even higher interest rate as per the term you choose.

No Fees: 

There are no maintenance fees or any other fees on any of the accounts.

No Minimum Deposit Limit:

You can open an account with them with as little as 1 dollar.

24/7 Account Access:

The account can be accessed from anywhere in the world anytime you wish via online or phone. You can also make transactions from your account at any given time. However, you can not make more than six withdrawals or transfers from your high-yield savings account within a monthly statement circle.

Early Withdrawal Penalty:

There are no penalties for early withdrawal of high-yield savings account. However, there is a penalty that you have to pay if you make an early withdrawal from a certificate of deposit. The rate and amount of the penalty will depend upon the terms and conditions of your certificate of deposit.

Pros:

  • Superior convenience, the application process takes just a few minutes considering you have the information ready. You can choose to receive statements via email or postal mail.
  • Both the high-yield savings account and certificate of deposit can be opened without an American Express credit card. You don’t have to qualify for one.
  • Your accounts will be backed up by many reputed personal finance services. So you don’t need to worry about its safety.
  • Every high-yield account and certificate of deposit is insured for at least $250000 by the FDIC. The insurance amount increases when you add a beneficiary.

Cons:

  • Funds transferred via electronic deposits can take up to six business days to show. Check deposits can take up to eleven business days.
  • There is a limit of six withdrawals and transfer in a month. You need to transfer the amount to your external account first. Also, you will have to call in to make a withdrawal request, only then the check is being mailed to you.
  • There are other options available with much higher interest rates.

Conclusion:

In case you want to start saving now but don’t have a big amount to spare, the American Express is ideal for your needs. No fee and no minimum deposit amount add to its benefits. However, if you want higher interest rates there are othre better options available.

Time to end the article. I hope it was helpful and enjoyable. Thanks for reading.

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