American Express CDs: Excellent Rates for Short-Term Aims with No Fees
American Express is widely recognized for its credit cards, but its deposit accounts are also worth examining. American Express CDs have no fees and provide competitive rates on shorter terms, making them a suitable option for achieving higher returns on short-term objectives.
How do the Amex CDs work?
Rates and terms
American Express provides CD terms ranging from 11 months to five years with competitive rates of up to 4.50% APY. While the higher rates are available on shorter terms, longer terms generally offer slightly lower rates. If you're looking for a more attractive yield, options like an 11-month, 12-month, or 24-month CD could be the way to go.
A $5,000 deposit in an 11-month CD with a 4.50% APY would result in $201 in interest over the course of the investment.
Amex does not provide specialty CDs such as step-up CDs or no-penalty CDs.
Fees
Amex CDs do not require a minimum deposit to open and do not charge a monthly maintenance fee. However, like traditional CDs, you will be subject to a penalty if you withdraw your deposit before the account matures. The penalty for Amex CDs is as follows:
- For CD terms under a year, 90 days of interest.
- For CD terms between one year and less than four years, the interest earned is 270 days.
- For CD terms between four and 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 for those seeking a simple account with no minimum deposit, no monthly fees, and competitive rates. Although longer-term CDs provide around 3.00% APY, which is lower than some of our top CD picks, you can still maximize your earnings with shorter-term CDs. To achieve the highest APY, deposit as much money as possible, keeping in mind that you won't have access to it until the CD matures.
Alternative CDs
Synchrony Bank offers CDs with APYs up to 5.15% and terms ranging from three months to five years. Additionally, Synchrony provides a 24-month bump-up CD, allowing you to increase your APY and interest rate during the CD's term. There are no monthly fees or minimum balance requirements.
Goldman Sachs offers CDs with terms ranging from six months to six years, rates up to 5.10% APY, and a minimum deposit of $500. There are no monthly maintenance fees, and you can choose from high-yield CDs, rate bump CDs, and no-penalty CDs.
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