Investing News

American Express CD Rates: January 2025

3 days ago
17 Views
5 Min Read

American Express offers a simple CD with decent rates

Fact checked by Michael Rosenston

RichVintage / Getty Images

RichVintage / Getty Images

Although American Express is primarily known for its credit cards and charge cards, it also has several savings options, including high-yield savings accounts and a certificate of deposit (CD). 

American Express CD rates are up to 3.75%, higher than the national average for some term lengths. It has no minimum balance requirement, making it particularly useful for those without substantial savings. Compare American Express CDs to some of the best CDs on the market today.

American Express CD Overview

American Express’ CD accounts have fixed interest rates. Other options, such as variable-rate and no-penalty CDs, are not available through American Express. 

Compare American Express CD Rates

Several banks have rates higher than American Express, particularly for certain longer terms. And they often offer longer options, allowing customers to lock in their interest rate for as long as 10 years. 

However, some banks have minimum balance requirements that can be quite high. American Express doesn’t, so it may be more attainable for those with limited cash reserves.

American Express CD: Key Features

While some banks require you to deposit at least $2,500 or $5,000 to earn a higher yield on your CD, American Express has no minimum balance requirement. That feature makes it a good option for those who may have limited amounts to tuck away and so may not qualify for other CDs with high minimum balances. 

American Express CD rates vary by term length, and it offers high rates on specific terms. Other terms have much lower rates. 

Like other CDs, you cannot touch the money in the American Express account until its maturity date. Otherwise, early withdrawal penalties can range from 90 to 540 days’ interest.

However, American Express does allow you to withdraw some or all of the interest that’s been credited to the account before its maturity date. You can request a one-time payment of the interest to your savings account or opt to receive a check.  

Important

American Express’ CDs require an upfront deposit, and you cannot add to the CD before its maturity date. If you want an account with more flexibility, you may want to consider a high-yield savings account.

Pros and Cons of American Express CD Rates

Pros

  • Various terms

  • No minimum deposit requirement

Cons

  • Early withdrawal penalties

  • Potentially better rates elsewhere

Pros Explained

  • Various terms: You can find CDs of various term lengths of up to five years with American Express.
  • No minimum deposit requirement: Unlike many other CDs, you won’t face a minimum deposit requirement with American Express CDs.

Cons Explained

  • Early withdrawal penalties: Early withdrawal penalties can range from 90 to 540 days’ interest.
  • Potentially better rates elsewhere: American Express CD interest rates are fairly competitive, but you could likely find even better rates by shopping around.

About American Express

American Express is a major financial institution that offers credit cards, savings accounts, checking accounts, and personal loans. While the company is probably most well known for its credit cards, its savings accounts have become increasingly popular as well.

American Express also offers business financial services, including small business credit cards, business checking accounts, business lines of credit, and payment solutions.

Alternatives to American Express CDs

  • High-yield savings accounts: If you’re willing to open an online savings account elsewhere, you may be able to earn higher rates. See the best high-yield savings account rates to compare how much you could earn.
  • High-yield checking accounts: You may find relatively high rates with some checking accounts. Be aware of their requirements and limits. The best high-interest checking accounts give you easy access to your money.
  • Certificates of deposit (CDs): You can also choose from a range of CDs from other financial institutions.
  • Money market account: Money market account can also provide a return on your savings. Check the best money market account rates to see how it compares.
  • Treasury securities: These government-backed bills, notes, and bonds sometimes offer even higher rates than CDs and may be more liquid.

Frequently Asked Questions (FAQs)

How Do You Get a CD With American Express?

You can open a CD online with American Express if you meet the following requirements:

  • You must be at least 18.
  • You must be a U.S. citizen or a resident alien with a valid Social Security number or an individual Taxpayer Identification Number with a U.S. address.
  • You must use the account for personal use only.

The CD must be funded within 60 days. Otherwise, American Express will close the account.

Are American Express CDs Worth Investing In?

As of publication, the rates on American Express CDs with certain terms were significantly higher than the national average. And because American Express doesn’t require a minimum balance, you can open a CD with a relatively small amount to take advantage of the higher yield or build a CD ladder. For other term options, other banks may offer better rates.

Are American Express CDs FDIC-Insured?

Yes, American Express CDs are backed by FDIC insurance on deposit amounts up to $250,000 per customer.

How Do You Get the Best CD Rate With American Express?

American Express CD rates depend on the term length rather than the amount of your deposit. Unlike many banks, a longer term doesn’t necessarily mean you’ll get a higher APY. Currently, American Express offers the best CD rates on CDs with relatively short terms.

If you’re looking for the highest APYs on the market, check out our picks for the best CD rates.

Your Guide to CDs

We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation.

Newsletter