American Express Certificate of Deposit

American Express is a well trusted name in the financial world and if you are looking for a safe investment product, an American Express Certificate of Deposit is as good as it gets. There are several maturity dates to choose from with corresponding rates expressed in Annual Percentage Yields (APY). While most of us are familiar with American Express credit cards, few of us know about American Express CD’s so the following information might prove helpful.

Maturity Dates to Choose From
As mentioned above, American Express offers several maturity dates to choose from a 6 month CD through 60 month CD’s. Following is a breakdown of the corresponding rates:

  • 6 month – 0.50%
  • 12 month – 0.90%
  • 18 month – 1.00%
  • 24 month – 1.25%
  • 36 month – 1.45%
  • 48 month – 1.60%
  • 60 month – 2.15%

Of course the longer you leave your money on deposit the higher your APY will be. Also, one of the most attractive benefits of all is that all American Express CD’s are FDIC insured up to the relevant limits, and of course you will not be charged any monthly fees on CD’s.

Funding an American Express CD
There are couple of ways in which you can fund a CD from American Express. The first way is through electronic transfer where you need to provide your checking or savings account number and routing number. As the result of internet fraud, American Express will verify that the account is yours with a two small trial deposits which will also be withdrawn again once the deposits have cleared. After your external account has been verified you can choose a CD amount and maturity date and fund it from your account. The maximum amount which can be electronically transferred to your American Express deposit account is $250,000.

The second way in which to purchase an American Express Certificate of Deposit is to send a personal check by United States mail. The back of the check should clearly be marked “For Deposit Only” and of course the check should be payable to American Express. It is also possible to fund your CD with insurance and IRS checks. However, these checks may be returned to you if they are not endorsed by the person they are made out to or if instructions are not included as to which account to fund.

Withdrawals and Penalties
Early withdrawal before the maturity date will of course be subject to a penalty. Information regarding the amount and to what extent you will be penalized are outlined on the Deposit Account Agreement. However, interest earned will be paid monthly and there is no penalty for withdrawing that from your account. The only time you will be penalized is if you withdraw money from the principal. There is one thing to be aware of and that is that the APY listed assumes that interest will be left on account until the CD matures.

Considered a Safe Investment
Because American Express is a well respected name with a history of financial success, placing money in a savings account (American Express Certificate of Deposit) is considered to be a safe investment. While there is potential to realize greater gains in other types of investment products, American Express CD’s provide FDIC insurance and a safe, albeit slow, way to grow your savings. Some people find that an investment portfolio that includes some riskier ventures should also include safer investments such as an American Express CD.

Others choose this type of investment in years just prior to retirement simply for the safety net afforded. Whatever your investment strategy, you really can’t go wrong with an FDIC insured deposit account. Further information can be found on the American Express website where you will also find contact information should you have any questions that aren’t answered online.

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