American Express

• Services and Features
• No Fees
• Savings Accounts

Services and Features

American Express is a 100% virtual bank, which allows for easy customer access 24/7. It does have a brick and mortar address customers can contact through postal mail, however. AMEX also has a toll-free 800 number for transactions and inquiries. Access can be gained from anywhere there is internet access via computer or mobile device.

No Fees

Unlike other banks offering personal financial products,  American Express offers accounts with no fees, including:

• No monthly fees. American Express Savings Accounts have no monthly or annual maintenance fees. There are no hidden fees and there are no latent fees waiting to be activated with a drop in balance. Customers can rest assure that when it says no fees, it means no fees under any circumstances.
• No minimum balance required in order to be exempt from monthly fees. Many banks offer savings accounts with a minimum balance requirement unless customers incur a monthly fee of $5 or higher. The only way a customer can waive this fee is to get direct deposit of a minimum amount i.e. $250. American Express offers savings accounts that are fitting for people of every tax bracket.

• No need to switch banks. American Express allows customers to transfer money easily. External bank accounts can be linked directly to AMEX's savings or CD accounts. Customers can directly deposit all or part of their payroll, Social Security or pension fund payment into their Savings account. There are no fees for account linking and transfer.
• FDIC insured. AMEX insures account holders to at least $250,000
• 24/7 account access. American Express has a simple and easy protocol for transactions like deposits and withdrawals, such as:

• Bank account easily linked to Personal Savings
• Transfer funds 24/7 online or by phone
• Start earning interest on the same business day AMEX receives customer's deposit into high yield savings accounts

Savings Accounts

American Express savings accounts accrue interest automatically. If a customer deposits a check into their account, it begins earning interest the very same day (if deposit is made on a business day). Customers may make up to six preauthorized, automatic, telephone or online transfers or withdrawals from a High-Yield Savings account during any monthly statement cycle.
• CDs. Interest is credited to AMEX CD accounts on a monthly basis. Customers may also elect to:

• Keep credited interest in your CD account until maturity
• Receive credited interest in the form of checks AMEX mails to customers
• Have credited interest transferred automatically each month from CD account to their High-Yield Savings account, a linked account or your original CD funding account

Limitations on CDs are standard for CDs at most banks. Such as:

• Additional deposits may not be made into a Certificate of Deposit account before maturity.
• Account holders can only withdraw the entire principal before maturity. They cannot withdraw partial amounts.
• Customers can withdraw interest accrued and credited to their Certificate of Deposit account before maturity at any time without penalty.
• A withdrawal of interest before maturity will reduce CD earnings.

• Online Banking
• Limited Transfers and Withdrawals
• High Yield Savings Account

Online Banking

Banking 100% online has a downside. Any transfer of money that is not electronic, i.e. money orders, is not as simple and easy as direct deposit or electronic transfers. There is a huge drawback for people who do business with varying forms of checks. If a customer wants to deposit a check into their account, there are a few stumbling blocks. Deposits made by check are accepted in American Express Bank's sole discretion. This means they reserve the right to refuse, return or limit any deposit a customer makes to their account. Examples of items they do not accept for deposit include:  multiple-endorsed checks, counter checks, starter checks, travelers' checks and money orders. This "discretion" poses a severe limitation to customers, arguably putting AMEX more in control of an individual's account than it should have. It also creates a severe inconvenience factor, especially if the customer is getting paid from a third party. They are either forced to convert the checks to acceptable forms of payment themselves or request third parties to pay them electronically or by direct deposit. Unfortunately, that is not always an option. This is not the easiest option for people of lower financial means and limited resources who may not have options on how they receive money.

Limited Transfers and Withdrawals

Customers are only allowed to make no more than six preauthorized, automatic, telephone or online transfers or withdrawals from their Savings account during any monthly statement cycle. This "preauthorization factor" can potentially prove to be a convenience with the power in the hands of AMEX to determine what monies can and cannot be both deposited and withdrawn.

High Yield Savings Account

Another note regarding the high yield savings accounts is the time factor. If a customer is receiving payments and is waiting to withdraw the funds, it may take a little longer than expected. Funds from check deposits to AMEX savings accounts will generally be available for withdrawal on the eleventh business day after receiving the deposit. Electronic deposits into savings accounts that are linked directly, i.e. transfers from a linked external bank account, generally are available for withdrawal in six business days. Direct deposits from third parties (such as an employer) are available the same business day.