Everyone has heard about American Express credit card accounts. But, have you ever heard about their high yield cd accounts? Finding the information for these cd accounts was like finding the proverbial needle in a haystack. Read on to see if finding that needle was worth the effort.

Getting started with American Express Certificates of Deposit

American Express offers standard term cd accounts from 6 months to 5 years. Each is FDIC insured up to the federal limit of $250K (which is also the maximum you can deposit into one of their cd accounts). American Express CDs do not have monthly fees and includes 24/7 access via online banking or by phone. You can fund your account via electronic transfer and they are very careful to protect these funds by making a couple of test deposits to verify the accuracy of your account information. You may also name up to six (6) beneficiaries for your account, just in case something terrible happens to you in the interim. Statements are sent quarterly and readily available on line for easy access.

Rates and Penalties

The interest rate and APY are locked in upon application submittal provided your account is funded within 30 days of approval. The quoted APY rate presumes you do not withdraw any interest or principal before the maturity date. You may withdraw interest before maturity date; however, withdrawing the interest will reduce your high yield cd account’s total interest earnings. You may receive credited interest from CD accounts on a monthly, quarterly or annual basis. You have the option of receiving the interest by check or electronic transfer to your HYSA, linked account or original funding account. Interest is compounded daily and the first interest payment is paid thirty days after account has been funded. American Express accounts high interest cd rates and APY are among the national leaders. The national average for a 1 year CD is currently 0.45% (0.61% in Sept 2010) whereas American Express is 0.90%. Their 36 month CD has the one of the best cd interest rates in the nation.

As at 6 June 2011, the CD rates are as follows:

Withdrawing principal early from American Express CD accounts may incur a penalty. On a cd term of 12 months or less, 3 months interest or cost recovery value (CRV) on the withdrawn amount may be assessed, which ever is higher. On terms longer than 12 months, 6 months interest or CRV on the withdrawn amount may be assessed, again which ever is higher.

CD account will automatically renew at maturity. If you do not want this to happen, you must call or complete and send the ‘authorization for account closure’ form by maturity date. You do have a 10-calendar-day grace period in which you can withdraw the funds without penalty.

Summary of American Express CD Accounts

American Express CD accounts make a strong showing when compared to other online CD accounts. Traditionally, American Express has been well known for its credit card accounts. Quite frankly, finding information about their cd accounts was like searching for a needle in a haystack. The difficulty involved in finding information about these high yield cd rates is a very good reason to take advantage of BankTruth’s best CD rate posts and online bank reviews. If you are interested in learning more about American Express Bank, please visit our American Express Review.