American Express Savings Account has no monthly fee
American Express Bank's savings account does not charge a monthly maintenance fee. You will not pay a flat fee just for holding the account open, and there is no minimum balance requirement that triggers a charge if you fall below it.
The account does have other costs you should know about — not monthly fees, but charges that happen when you take specific actions. Understanding what those are helps you decide whether this account fits your situation.
Key Takeaways
- American Express Bank's savings account has no monthly maintenance fee and no minimum balance requirement.
- You will not be charged for deposits, transfers between your own accounts, or viewing your balance.
- Fees do explore if you exceed a certain number of withdrawals per month, though the exact limit and charge amount vary.
- Closing the account early does not trigger a penalty, so you can open it without risk if you want to test the interest rate.
What actions cost money on this account
The main fee to watch for is the excess withdrawal fee. Federal banking rules once limited how many times per month you could withdraw money from a savings account. Those rules changed, but many banks still charge if you go over a certain number of withdrawals.
American Express Bank charges a fee when you exceed their withdrawal limit in a single month. The exact number of free withdrawals and the amount of the fee can change, so check your account agreement or call their customer service line to confirm the current terms before you open the account.
You will not pay a fee for deposits, transfers you initiate to other banks, or transfers between accounts you own at American Express Bank. Viewing your balance, setting up alerts, or using their mobile app also costs nothing.
How the interest rate compares to the fees
American Express Bank's savings account is known for offering a higher interest rate than many traditional banks. The rate changes based on Federal Reserve decisions and market conditions, so it is different from month to month.
The reason to open this account is usually the interest rate, not to avoid fees. If you plan to make only a few withdrawals per month — which most people do with a savings account — you will never hit the withdrawal limit and will never pay a fee. The interest you earn will likely be more than you would earn at a bank with lower rates and no withdrawal limits.
Early closure and account changes
American Express Bank does not charge a fee if you close the account. You can open it, see how the interest rate and service work for you, and close it later without penalty. This means there is no financial risk to trying the account.
If you need to change your account type — for example, moving money to a money market account instead — ask American Express Bank whether that counts as a closure or a transfer. Some banks treat it as a new account, which would not trigger a fee, while others handle it differently.
How to avoid withdrawal fees
The simplest way to avoid the excess withdrawal fee is to treat your savings account as a place where money sits and grows, not a place where you move money in and out constantly. Most people make one or two withdrawals per month, which is well below any limit.
If you know you will need to move money frequently, ask yourself whether a savings account is the right tool. A checking account, which has no withdrawal limits, might serve you better even if the interest rate is lower. American Express Bank offers both, so you can choose based on how you plan to use the money.
Comparing this account to other banks
Many online banks and some traditional banks offer savings accounts with no monthly fee and no withdrawal limits. The trade-off is usually a lower interest rate. American Express Bank's higher rate often makes up for the withdrawal limit, but only if you do not need frequent access to the money.
Before you open the account, think about your actual savings habits. If you regularly move money in and out, a bank with no withdrawal limits might cost you less in the long run, even with a lower rate. If you are saving for a goal and will leave the money alone, American Express Bank's rate advantage usually wins.
Frequently Asked Questions
What happens if I go over the withdrawal limit?
American Express Bank charges a fee per excess withdrawal. The fee amount and the number of free withdrawals vary, so contact the bank directly to learn the current terms. Most people stay under the limit without trying, since typical savings habits involve only one or two withdrawals per month.
Does transferring money to my checking account count as a withdrawal?
Yes, transfers out of the savings account count toward your withdrawal limit, including transfers to a checking account at American Express Bank or to another bank. Deposits and transfers in do not count. Check your account agreement to confirm the exact rules for your account type.
Can I avoid the fee by keeping a minimum balance?
No. The withdrawal limit and fee are separate from balance requirements. American Express Bank does not charge a monthly fee based on balance, and keeping more money in the account does not give you extra withdrawals or waive the excess withdrawal fee.
Is the interest rate may provide to stay the same?
No. American Express Bank changes the interest rate based on market conditions and Federal Reserve decisions. The rate can go up or down, and the bank will notify you of changes. The lack of a monthly fee does not change, but the rate you earn will vary over time.