American Express CD Rates: June 2024 (2024)

Vault’s Viewpoint on American Express’ CD Rates

• American Express certificate of deposits offer APYs that range from 3.00% to 4.50%
• The CD term you choose affects the APY you earn, but there’s a decent range of terms to choose from
• American Express requires no minimum deposit for its CDs, making them more flexible than some other CDs

Overview of American Express CDs

If you decide to open a CD with American Express, you’ll enjoy a lot of flexibility. To start off, you can choose among seven different CD terms. This is an important feature since you can’t withdraw money before the end of the CD term without facing a penalty fee. You need to be able to choose a CD term that works for your current financial plans and goals. The last thing you want to do is lock away money for too long of a period.

Be thoughtful when choosing a CD term with American Express, as the term affects your interest rate. For example, you’re better off choosing an 11-month term, as that earns the highest CD interest rate at American Express—4.50%. If you pick a 36-, 48- or 60-month term, you’ll receive the lowest annual percentage yield (APY) at American Express—3.00%.

“No monthly fees and no minimum balance requirement are two of the advantages of American Express CDs. But those advantages may be outweighed by the low rates for some of the bank’s CDs.”

— John Egan

When you open your CD, carefully choose the deposit amount. Unlike many other CD providers, American Express doesn’t require a minimum deposit. However, once you make a deposit, it’s locked in. You can’t add to your original deposit.

The following table outlines current CD rates at American Express.

Pros and Cons of an American Express CD

Pros

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American Express CDs stand out for a few reasons:

• No minimum balance requirement
• No monthly fees
• FDIC insurance
• Seven CD terms

Cons

Of course, it’s also important to consider the downsides of American Express CDs before opening one:

• No penalty-free option
• Some CD terms come with low APYs

How Much Can You Earn With an American Express CD

How much interest you can earn with an American Express CD depends on the CD term and the deposit. The more money you deposit, the more you’ll earn at any given rate.

With an American Express CD, the interest you earn compounds daily (which means you’ll earn more than if it is compounded monthly or annually, and that interest goes into your account each month until the CD term reaches maturity.

The following table breaks down what you could earn for each of the currently available CD terms at American Express and their corresponding APYs if you made a $25,000 deposit.

How to Open a CD with American Express

If you decide an American Express CD is right for you, take these steps to open one:

• Confirm your eligibility. Before you start the CD application process, American Express will remind you of its eligibility requirements. You must be at least 18 years old, and you can’t use the account for anything other than personal purposes. Also, you must be a U.S. citizen or a resident alien with a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) and have a home address in the U.S.
• Complete the application. During the application process, you’ll choose the CD term and confirm whether the account is meant solely for your use or is a joint account. You’ll then provide basic personal and identifying information, as well as details needed to ensure that taxes are being properly withheld.
• Accept the terms and conditions. Next, you’ll accept the terms and conditions of the CD. Read the terms and conditions carefully so you realize precisely what you’re agreeing to.
• Make the deposit. Once you accept the terms and conditions, you can fund the CD and it can start earning interest. Remember that this is a one-time deposit, so you can’t add to this amount once you make the initial deposit.

Alternatives to a CD with American Express

If an American Express CD is not the right fit but you’re still interested in working with American Express, you can choose from other savings options.

American Express Savings High Yield Savings Account

American Express recommends opening a high-yield savings account rather than a CD if you want flexibility regarding your money. With the American Express Savings High Yield Savings Account, you can make deposits as often as you’d like. American Express places limits on how often you can withdraw your money each month (as is generally the case with all savings accounts), but you can make withdrawals or transfers, which you can’t do with a CD.

The American Express High Yield Savings Account offers a 4.25% APY, charges no monthly fees and has no minimum balance requirements. To make saving money easier, American Express lets you set up auto deposits. Like the CD product, this savings account generates interest that compounds daily, which can help you grow your savings faster.

American Express IRAs

Another way to grow your savings is to look to the future—specifically, your golden years. If you want to save money for retirement, you can open an individual retirement account (IRA) at American Express.

With the IRA High Yield Savings Account, you can open a traditional or Roth IRA—both of which come with unique tax advantages. If you go the traditional IRA route, you’ll contribute post-tax income but won’t pay income taxes on your earnings in the future. Roth IRAs require you to contribute pretax income, which saves you money on taxes now, but you’ll pay taxes when you eventually make withdrawals.

Once you deposit funds into the IRA High Yield Savings account, you earn a 4.30% APY. American Express doesn’t charge monthly fees or require a minimum balance, and your interest compounds daily.

You also have the option to open an IRA Certificate of Deposit and can earn up to a 4.35% APY depending on your chosen CD term amount. Current IRA CD terms include 12, 18, 24, 36, 48 and 60 months, with rates ranging from 3.00% to 4.35%.