American Express CDs Review 2024 – MASHAHER

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. 

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. 

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.  

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. 

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. 

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