Review: American Express Personal Savings Account Review

Investing your money is always a good idea, but not all forms of investment are a good idea for all investors. For example, some have money to invest, but only in the short-term. Others are looking for a new long-term investment solution, and that means that you need to really take a look at your finances, what’s available to you and what you can get to make the most of your money. It’s not always an easy job going through your finances to see what you have to invest, but it’s necessary. For those looking for a short term investment opportunity, something like the American Express Personal Savings account might be right for you. You’ll be able to invest solely in short-term options such as CDs (certificate of deposit) or a high-yield savings account that will help you with your short-term needs and your goals. What these offer you are profitable investment opportunities that are both conservative and not looking to tie up your funds for a significant amount of time.

What makes the most sense about the American Express Personal Savings account is that it’s a great option for those who already do business with American Express. It’s also perfect for those who want to take advantage of a great account without putting down too much money and bothering with high minimum deposit requirements. What exactly is a high-yield savings account? It’s an account that has a much higher rate of return than other accounts, which makes it a lot more sensible in terms of investments. Unlike a conventional savings account with a very low rate, this one is much higher. Additionally, your funds are always available to you without penalties accruing.

The CD you are looking into is slightly different in that you will need to place your money into the account for a certain amount of time. The good news is that you get to choose how long you’d like your funds in your CD, which means you can choose months or years. The rate is much higher on an account like this, too. The problem, however, is that accessing your funds prior to the end of your term means you will incur sizable penalties.

Applying for an American Express Personal Savings Account

Who doesn’t love an application process that’s as simple as this one? All you’ll need to do is enter your basic information the same as you would for anything else that you do. The following is required to apply for this kind of account:

Name

Address

Phone number

Social Security Number

Date of birth

Driver’s License number (if applicable)

Employment and employer information

Once you have submitted this information, you can choose how you’d like to open your account with American Express. Your choices include an electronic transfer from one bank to another or by mailing in a paper check. Both are fine, but the paper check route typically takes longer and means it will take you longer to begin seeing a return on your investment. You should also note that any electronic transfers will not occur until American Express is able to provide you with two small deposits into your account to verify the account before the transfer will go through.

It’s important to know that you will receive a welcome kit from Amex within a week of opening your account. Additionally, you will receive communication from the company 10 days prior to the maturity date of your account. If you do not inform Amex what you’d like to do with your renewal, they will automatically renew on your behalf. This might be fine for some, but not for others. Always make sure you take the time to go through your monthly statements and information pertaining to whichever account you choose to open so that you’re always on top of the game.

Key Features of Opening an Amex Account

No Minimum Deposit or Balance – it takes only a dollar to open an account here
Varying Rates – all rates are competitive and vary by account
No Fees – it’s that simple
Constant Account Access – there is never a time in which you cannot access your account and information with Amex
Earth Withdrawal Penalties – there are many rules associated with this, and it’s imperative that you read the rules associated with the account you open so you know where you stand when a withdrawal is needed from the account. As far as CDs go, you will need to pay a penalty for withdrawing your funds early. Also, most accounts do not allow partial withdrawals and might wind up closed by Amex.

Advantages of these Accounts

You do not need an Amex card to open either account.
Your accounts are FDIC insured up to $250,000.
It’s convenient.
You can set up your own recurring deposits from other accounts.
You can linik your account to your favorite personal finance software, including Mint and Quicken.

Disadvantages of these Accounts

Funds hold times are often extended as long as six business days for electronic deposits and as long as 11 days for check deposits.
There is very limited customer support in terms of a live representative. There is 24/7 phone support, but no email or chat.
Rates are not always the highest. However, Amex does have a very minimal deposit and that often makes up for lower rates than other competitors.
Penalties for early withdrawals are quite complicated and very confusing here.
Limited transfers and withdrawals mean you can only complete six at a time each billing cycle. This is a problem for some people with these accounts.

Wrap Up

If you have limited funds and need something with a short term, these are the accounts for you. The low deposit minimums and fees are very convenient for many investors, and the interest rates are good enough to make up for the fact that you will lack in other areas with accounts from this particular bank.

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