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You might like a CD from American Express National Bank (Member FDIC) if you want to open an account with a low initial deposit.
The 11-month, 1-year, and 2-year terms offer the most competitive interest rates. Still, the best CD rates are even higher for these term lengths.
American Express CD Rates Today
American Express CD rates vary depending on the term you choose. Here are the bank's current CD rates:
| Term | APY (Annual Percentage Yield) |
| American Express® 11 Month CD | 4.50% as of 5/10/24 APY |
| American Express® 1 Year CD | 4.35% as of 5/10/24 APY |
| American Express® 18 Month CD | 3.25% as of 5/10/24APY |
| American Express® 2 Year CD | 4.00% as of 5/10/24 APY |
| American Express® 3 Year CD | 3.00% as of 5/10/24 APY |
| American Express® 4 Year CD | 3.00% as of 5/10/24 APY |
| American Express® 5 Year CD | 3.00% as of 5/10/24 APY |
About American Express CDs
American Express National Bank (Member FDIC) could be a good option if you want a CD with a low minimum opening deposit.
The bank's strongest options are its 11-month, 1-year, and 2-year terms. The other CD terms aren't as strong, and you'll likely find much better rates at other online banks.
American Express CDs: Understanding Your Options
Types of CDs Offered by American Express
American Express National Bank (Member FDIC) only has standard CDs. These CDs have a fixed interest rate, which means your rate will remain the same for the full term. If you need to take out money before a CD matures, you'll have to pay an early withdrawal penalty.
If you're interested in specialty CDs, like no-penalty CDs or bump-up CDs, you'll have to choose a different bank.
Online Banking Experience
If you get an American Express® CD, you'll have to be comfortable using a mobile app and desktop for banking because the bank doesn't have branches. That said, it does offer 24/7 live customer support by phone.
Low Minimum Opening Deposit
Generally, most banks require a minimum of $1,000. At American Express National Bank (Member FDIC), the minimum deposit is $0. This is the most lenient opening deposit requirement you'll find across financial institutions.
CD Early Withdrawal Penalties
If you decide to withdraw money from an American Express CD before it reach maturity, the following early withdrawal penalties apply:
- For CD terms under a year, the penalty is 90 days of interest.
- For CD terms between one year and less than four years, the penalty is 270 days of interest.
- For CD terms between four years and less than five years, the penalty is 365 days of interest.
- For CD terms five years or longer, the penalty is 540 days of interest.
These penalties are high compared to other financial institutions. Other banks may also have no-penalty CDs, so you can make a fee-free withdrawal and avoid charges entirely.
What Influences American Express CD Earnings?
American Express CD rates can fluctuate over time because bank account interest rates are impacted by market conditions and the Fed's actions. This may sway whether you choose to open a CD or put your money in another type of safe investment.
To help you determine if a CD is a good fit, we'll briefly go over what affects CD rates and how to calculate potential earnings.
Market Conditions and Fed Actions
The Fed will adjust the federal funds rate so existing economic conditions meet their goals. They want to achieve and maintain maximum employment, price stability, and long-term interest rates.
Changes in the federal funds rate affect banking products. Generally, American Express CD rates increase when the Fed decides on rate hikes. If the Fed thinks there should be a rate cut, American Express CD rates will likely drop.
Usually, long-term CDs pay higher rates than short-term CDs. However, due to the current economic environment, many banks have short-term CD rates that are more competitive than long-term CD rates. American Express follows this larger CD trend to some extent. The bank's best CD rate is from its short term length. That said, the bank also pays a higher rate on its 2-year CD than its 18-month or 1-year options.
CD Term Length and Opening Deposit
You can use a CD calculator to estimate your potential earnings on a CD. The CD term length and opening deposit amount can affect how much interest you'll earn overall. Longer CD term lengths and higher minimum opening deposits result in more interest earned on a CD.
How American Express CD Rates Compare
American Express CDs vs. Capital One 360 CDs
You may favor Capital One 360 over American Express if you prioritize low early withdrawal penalties. Capital One 360 CDs also come in a greater variety. For example, you could get a 9-month or 30-month term.
If you don't meet the minimum opening requirements at other financial institutions, American Express and Capital One 360 are equally good options. Both allow you to open a CD with $0.
Capital One 360 Bank Review
American Express CDs vs. Barclays CDs
You might lean more toward Barclays if you're worried about early withdrawal penalties since it's a bit more lenient than American Express.
American Express might be a good option if you have an American Express card. If you've had a card for at least three months, you'll be eligible for the American Express® Rewards Checking Account. Barlcays doesn't offer any checking accounts.
Barclays Bank Review
Should You Invest in an American Express CD?
You might find American Express CDs appealing if you would prefer to open a CD with a low initial deposit.
American Express also might be worth considering if you are searching for an 11-month, 1-year, or 2-year CD. These terms have the most competitive interest rates and will likely be higher than most brick-and-mortar banks.
If you plan on opening multiple bank accounts at the same financial institution, American Express National Bank (Member FDIC) also has a high-yield savings account and a rewards checking account. However, the American Express® Rewards Checking Account is only available to Consumer Card Members who have had a card account for at least three months.
You may prefer another financial institution if you're searching for CDs with more lenient withdrawal penalties. Other online banks also offer more competitive interest rates on CDs.
Why You Should Trust Us: How We Reviewed American Express CDs
We use the Business Insider certificate of deposit methodology to review Amex CDs. We look at ethics, mobile apps, customer service, interest rates, minimum deposits, term variety, and early withdrawal penalties. We assign each category a score between 0 and 5, then average the scores together to determine a rating for Amex CDs.
American Express CDs FAQs
Does American Express have competitive CD rates?
American Express CDs pay more than average CDs. The bank's most competitive terms are its 11-month, 1-year, and 2-year options. Still, you can find even higher rates at other banks.
How do I open an American Express CD?
American Express CDs can be opened through the bank's website. You may open an American Express CD with $0.
Do American Express CDs have unique features?
American Express doesn't have any specialty CDs. The only unique feature it offers for regular CDs is that they have a $0 minimum opening deposit. This is a rare perk for banks.
Are American Express CDs safe?
Yes. American Express CDs are FDIC-insured for up to $250,000 per depositor.
Do I need an American Express credit card to get one of their CDs?
No. You don't need to have an American Express credit card to get one of the bank's CDs. New customers can apply for CDs online.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She is a banking expert, and has about three years of experience reviewing banking products and analyzing savings and CD trends.Sophia oversees Personal Finance Insider's banking vertical. She edits and writes bank reviews, banking guides, and banking, budgeting, and savings articles for the Personal Finance Insider team.Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services »Below are links to some of her most popular stories:
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Compliance and Operations Associate
Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
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