American Express HYSA has no monthly maintenance fee, no minimum balance requirement, and no transaction fees
American Express Bank's high-yield savings account (HYSA) does not charge you to hold the account, maintain a balance, or move money in and out. There is no monthly fee, no minimum opening deposit, and no limit on how many withdrawals you can make each month. The account earns interest on whatever balance you keep, and that rate changes based on market conditions—but the rate itself costs you nothing.
The only cost to you is opportunity cost: if you keep money in this account instead of investing it elsewhere, you forgo whatever return you might have earned in stocks, bonds, or other investments. That is a choice you make, not a fee American Express charges.
Key Takeaways
- American Express HYSA charges no monthly maintenance fee, no minimum balance fee, and no transaction fees of any kind.
- You can open the account with any deposit amount and withdraw money as often as you need without penalty.
- The interest rate paid on your balance changes over time and is set by American Express, but earning interest costs you nothing.
- If you close the account, American Express does not charge a closure fee or early withdrawal penalty.
What happens if you fall below a minimum balance
American Express HYSA has no minimum balance requirement. You can open the account with $1 and keep it open with $1. You will not be charged a fee for having a low balance, and your account will not be closed automatically if your balance drops below any threshold.
The interest rate you earn applies to whatever balance you hold, no matter how small. If you have $100 in the account, you earn interest on $100. If you have $10,000, you earn interest on $10,000. The rate is the same either way.
How the interest rate works and whether it changes
American Express sets the interest rate (called the Annual Percentage Yield, or APY) on its HYSA. That rate changes based on Federal Reserve decisions and market conditions. When the Fed raises interest rates, American Express typically raises its APY. When the Fed cuts rates, American Express typically cuts its APY. You do not pay a fee when the rate changes—the new rate straightforward applies to your balance going forward.
You can check the current APY on American Express's website or by logging into your account. The rate is the same for all customers; American Express does not offer different rates based on how much money you have or how long you have been a customer.
Fees you might encounter when moving money
American Express itself does not charge you to transfer money into or out of the HYSA. However, your other bank might. If you transfer money from a checking account at another bank into your American Express HYSA, that other bank may charge an outgoing wire transfer fee (typically $15 to $30). American Express will not charge you on the receiving end.
The easiest way to avoid this is to use ACH transfers (also called electronic transfers), which are free at most banks. You can also transfer money by linking your American Express account to another bank account you own and moving funds that way, which is also free on both ends.
What happens if you close the account early
American Express does not charge a fee to close your HYSA. You can close it the day after you open it, or after five years, and you will not owe anything. When you close the account, American Express will send you any remaining balance (plus any interest earned up to that point) to the bank account you specify.
The only thing to know is that if you close the account and then reopen it later, you are opening a new account—American Express will run a credit check again, just as it did the first time.
How American Express makes money if there are no fees
American Express makes money on its HYSA the same way all banks do: by lending out the deposits customers make. When you deposit $10,000 into your American Express HYSA, the bank uses that money to make loans to other customers (mortgages, auto loans, business loans). The bank charges those borrowers interest rates higher than the rate it pays you. The difference is the bank's profit.
This is why you earn interest on your balance even though you pay no fees. The bank is paying you a small share of the money it makes by lending out your deposit. You are not paying for the privilege of saving; you are being paid for letting the bank use your money.
Frequently Asked Questions
Does American Express charge a fee if I don't use the account?
No. American Express does not charge inactivity fees. You can open an account, deposit money, and leave it untouched for months or years without being charged anything. The account will remain open and continue to earn interest on whatever balance is in it.
What if I make more than six withdrawals in a month?
American Express does not limit the number of withdrawals you can make. Federal regulations used to restrict savings account withdrawals to six per month, but those rules were removed. You can withdraw money as often as you need without penalty or fee.
Do I have to pay taxes on the interest I earn?
Yes, but that is not a fee American Express charges—it is a tax you owe to the IRS. American Express will send you a 1099-INT form at the end of the year showing how much interest you earned, and you report that on your tax return. The interest is taxable income.
Is there a fee if my account goes negative?
Your American Express HYSA cannot go negative. You can only withdraw money that is actually in the account. If you try to withdraw more than your balance, the transaction will be declined. There is no overdraft fee because overdrafts are not possible.
Does American Express charge a fee to link my account to another bank?
No. Linking your American Express account to another bank account for transfers is free. American Express does not charge for setting up the link or for making transfers through it. Your other bank might charge an outgoing wire fee if you use a wire transfer instead of an ACH transfer, but American Express will not.