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Key Takeaways
- American Express CDs are convenient if you already have an account there—but that ease can cost you since other institutions pay more.
- Smaller banks and credit unions offer higher CD rates than Amex, and they’re just as safe thanks to the same federal deposit insurance.
- It’s smart to act soon so you can lock in one of today’s best CD rates before the Fed’s next cut pushes yields lower.
The full article continues below these offers from our partners.
What American Express CDs Pay vs. Today’s Top Rates
If you have an American Express bank or credit card account, you’ve probably seen promotions for Amex CDs in your online banking dashboard. These certificates of deposit let you lock in a fixed interest rate for a set term, earning a guaranteed yield for months—or even years—without any risk.
For current Amex customers, opening one of these CDs would be quick and convenient. But is it the smartest move? How do Amex’s CD rates compare to the best offers available?
In every term right now, you can earn significantly more by instead opening one of today’s best CDs, which are typically offered by smaller banks and credit unions. Because Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) insurance provides the same federal protection no matter the size of bank or credit union, these lesser-known institutions are just as safe for your savings as American Express.
The rate gaps above may not look like huge differences, but the extra earnings add up. On an 18-month CD with a $10,000 deposit, for example, you’d pocket about $92 more by going with the top rate of 4.20% instead of Amex’s 3.60% offer—with the same safety and just a little more setup effort.
Why This Matters for You
Amex CDs are easy to open if you’re already a customer there, but that convenience can cost you. Since CDs are park-it-and-forget-it accounts, it’s smart to go where the rate is highest—not just where you already bank.
How Amex CDs Stack Up Against Other Big-Name Banks
If you still feel more at ease keeping your money in a CD at a big bank with a familiar name, you’re not alone. If brand recognition is a priority for you, here’s how Amex’s CD rates compare with other major players.
As you can see, Amex beats or matches the top rate where it offers a promotional odd-term CD, like 14 or 22 months. But in the standard terms, other banks—especially Capital One and Discover—pay more than American Express.
Act Fast: CD Rates Will Likely Drop With Fed Cuts
Wherever you decide to open a CD, it’s smart to move quickly. That’s because the Federal Reserve is widely expected to make another quarter-point cut to its benchmark interest rate in less than two weeks. Since bank and credit union deposit rates generally track the Fed’s moves, a reduction would push CD yields lower. Locking in now lets you secure one of today’s high rates before that happens.
In the end, whether an American Express CD is the right move comes down to what you value more—convenience or making your money work a little harder in a higher-paying account.
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
Important
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
