As a reformed spender, I love the opportunity to save money. Unfortunately for all of us savers, the economy is not really geared to rewarding us for holding onto our money. Even with low interest rates, I still love to save money and want to tell you about the American Express personal savings account. One of my goals is to give my readers options on where they store their cash. I am a big proponent of spreading your liquid assets in different places, so adding another savings account is no big thing for me. I am also a big fan of American Express, because they are the holder of one of my favorite cash back credit cards. Since my large banks are giving their savings customers a paltry 0.10%, anything better than that is good for everyone!
American Express Personal Savings – The Good, Bad, & Ugly
I figured I would break down the Amex personal savings account by doing a little good, bad, and ugly. While I don’t really thing there is anything ugly about the American Express personal savings account, I am going with a theme here, so bear with me people! I am going to provide some feedback into this savings account in hopes to give you options for your savings. We have a big issue with savings in the US and I am not sure how to fix it. At least we should try to reward people that are responsible with their money, but that doesn’t seem to be happening anytime soon.
American Express Personal Savings – The Good
There are quite a few things that make the Amex personal savings account stand out. Here are a few of what makes this savings account good and stand out in the competition of online savings accounts.
- Competitive Rate – There are quite a few online savings account providers out there, but they all don’t provide competitive interest rates. My big bank offers me a whopping 0.10% APY and that is just unacceptable. The American Express personal savings account has a competitively high rate.
- Quick Sign Up – No one likes to take a lot of time to sign up for something. Luckily for you, American Express makes the account sign up a breeze. You can be off and running in just a few minutes. Sign up for the American Express personal savings account.
- No Fees – We all hate bank fees, don’t we? I know that I do, so I refuse to pay them. American Express doesn’t charge fees for holding your money. It is just that simple!
- Federally Insured – We all like to make sure that our money is safe. This Amex savings account is backed by the FDIC for at least $250,000.
- Easy Electronic Transfers – In order to make the best out of this account, you should setup electronic transfers of your money from your regular checking account. You can also setup automatic transfers to make saving effortless.
- Customer Service – American Express has great customer service. I have never had any issues on either my savings account or with my credit card.
- No Minimum Balance – I hate when I see banks put minimum caps on accounts. Luckily, that is not the case here. There is no minimum initial deposit (well it is $1) and no ongoing minimum balance. That is great to see.
American Express Personal Savings – The Bad
From my experience with American Express, there aren’t too many things bad or ugly with the Amex personal savings account. That being said, here is one thing that could be thought as bad.
- Withdraws and Transfers – (Update: I have been made aware that this is a federal limit on transfers going out of the savings account. You can deposit as much as you want.) What good is having money in an account if you can’t access it. You can only have six transfers and withdraws per a billing cycle. If you do a lot of saving, then this might be a problem. I know some people like to put money into their account every week, plus more. If you are doing the 52-week savings challenge, then you could be pushing the limits. You can only withdraw funds into an external account, unless you call them and get a check cut. You should really link an external bank account in order to use the American Express personal savings.
- Check Deposit Limitations – Do you like to deposit checks into your checking account? This could be a little tougher with the American Express personal savings account. The two real ways to deposit money is to transfer funds from an external account or send a check into American Express. You can only deposit money into your account from account that you own.
American Express Personal Savings – The Ugly
As I indicated before, I am not I want to call this part ugly, but after reading some other customer reviews and from my experience, I think this is one area where American Express can improve.
- Fund Hold Time – As with any banking institution, there is going to be a delay between when you initiate a transfer and when it actually comes into the account. For some of my other accounts, this transfer takes a day or two. Unfortunately, the Amex savings account can sometimes hold your funds for up to six business days. I think this should be greatly improved. That being said, if you are using this account as a true savings account, then this time shouldn’t really matter much.
My Experience with the American Express Personal Savings
As I said, I am a fan of diversifying my liquid funds, so it is natural to spread my money into multiple accounts. While some of you will say that it can be hard to keep up with different accounts, I have a simple solution. Personal Capital baby! It is just like Mint, but it focuses on investing, while still aggregating all of my data. I love it and highly recommend it.
OK, back on track now. I signed up for the American Express personal savings account and had it funded in about a week. I had to wait for the first electronics transfer to get setup and then had to wait for my money to actually be transferred. As I said, this is the biggest downfall. Other than that, everything else has been extremely smooth. I like the American Express interface and recommend this account to any savers that don’t want to deal with investing. They also offer CD’s if you are interested.
Would you put any of your savings in the American Express personal savings? Do you already have an account, and if so, how do feel about it?