American Express is usually best known for its cards, but its deposit accounts are also worth considering. American Express CDs come with no fees and offer solid rates on shorter terms, making them a good choice for maximizing returns on short-term goals.
American Express CDs
Information about the American Express CDs has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
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Annual Percentage Yield (APY)
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Terms
From 11 months to 5 years
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Minimum balance
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Monthly fee
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Early withdrawal penalty fee
For CDs with terms less than 12 months, the early withdrawal penalty is 90 days’ interest on the withdrawn amount. For terms between 12 and 48 months, it’s 270 days’ interest. For terms between 48 and 60 months, it’s 365 days’ interest. For terms of 60 months or more, the penalty is 540 days’ interest.
Pros
- Above-average APYs
- No minimum deposit
- No monthly fee
- Range of CD terms
Cons
- You can’t access your money before your CD term ends
- Early withdrawal penalty fee will apply
- No physical branch locations
How do the Amex CDs work?
Rates and terms
American Express offers a variety of CD terms, ranging from 11 months to five years with competitive rates of up to 4.50% APY that stack up well against some of our top picks. However, the higher rates are available on shorter terms, so if you’re aiming for a more attractive yield, options like an 11-month, 12-month or 24-month CD could be the way to go. Longer terms generally offer slightly lower rates.
To put this in perspective, with an 11-month CD earning the highest rate of 4.50% APY, a $5,000 deposit would yield $201 over the CD’s term.
Keep in mind that Amex also doesn’t offer specialty CDs such as a step-up CD (which automatically raises your rate) or a no-penalty CD (which lets you withdraw funds early without paying a fee).
Fees
Amex CDs don’t require a minimum deposit to open and they don’t charge a monthly maintenance fee. Like most traditional CDs, you have to pay a penalty if you withdraw your deposit before the account matures. For Amex CDs, the penalties are as follows:
- For CD terms under a year, 90 days of interest.
- For CD terms between one year and less than four years, 270 days of interest.
- For CD terms between four years and less than five years, 365 days of interest.
- For CD terms five years or longer, 540 days of interest.
Are the Amex CDs for you?
Amex CDs are a great option if you’re looking for a straightforward account with no minimum deposit, no monthly fees, and solid rates. While longer-term CDs offer around 3.00% APY, which is lower than what some of our top CD picks offer, you can still maximize your earnings with shorter-term CDs. To make the most of the APY, deposit as much money as you can, keeping in mind you won’t have access to it until the CD matures.
Alternative CDs
If you’d like to earn a higher rate than what Amex offers, Synchrony Bank offers up to 5.15% APY with CD terms ranging from three months to five years. Synchrony also provides a 24-month bump-up CD, allowing you to “bump up” your APY and interest rate during the CD’s term. Plus, there are no monthly fees or minimum balance requirements.
Synchrony Bank CDs
Synchrony Bank is a Member FDIC.
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Annual Percentage Yield (APY)
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Terms
From 3 months to 60 months
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Minimum balance
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Monthly fee
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Early withdrawal penalty fee
There may be an early withdrawal penalty if you withdraw funds from the principal prior to the CD maturity date (the last day of the CD term). The penalty is applied to the amount of principal withdrawn (there’s no penalty on interest). For the No-Penalty CD, early withdrawals are not permitted within the first 6 days after account funding. Following that, only withdrawal of the entire balance is allowed.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest for your CD type in effect at that time.
Marcus by Goldman Sachs also offers CD terms ranging from six months to six years, with rates up to 5.10% APY. While a $500 minimum deposit is required, there are no monthly maintenance fees. You can also choose from high-yield CDs, rate bump CDs, and no-penalty CDs.
Marcus by Goldman Sachs® CDs
Marcus by Goldman Sachs® is a brand of Goldman Sachs Bank USA, a Member FDIC.
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Annual Percentage Yield (APY)
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Terms
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Minimum deposit
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Monthly fee
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Early withdrawal penalty fee
If you withdraw the balance entire principal amount from your CD account prior to maturity, you’ll be charged an early withdrawal penalty based on the term of your CD and the principal (except in the case of a No-Penalty CD). Here’s how early withdrawal penalties are calculated:
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Early Withdrawal Penalty = Interest Rate ÷ 365 (or 366) × Penalty Days × Original Principal Balance
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