Need a secure, high-interest spot to sit on your money? Here’s the inside scoop on FDIC protection and worry-free banking with American Express.
What does FDIC insurance mean?
- FDIC is the Federal Deposit Insurance Corporation, an American government–related institution established in 1933 to insure bank deposits (americanexpress.com, apnews.com).
- It insures your covered deposits up to $250,000 per depositor, per ownership category, per bank (americanexpress.com).
- In case of a bank failure, the FDIC intervenes so depositors don’t lose their money.
Is American Express Bank FDIC‑insured?
Yes, American Express National Bank (the bank that issues the HYSA) is FDIC‑insured, with certificate number 27471 (apnews.com, americanexpress.com). That means your money is insured by the full faith and credit of the United States government, up to the standard $250,000 maximum.
What does qualify towards the FDIC maximum?
Your deposit accounts are covered by FDIC up to all eligible accounts including:
- High‑yield savings
- Checking accounts
- Money market deposit accounts
- Certificates of Deposit (CDs)
These are classified according to ownership category—i.e., individual vs. joint accounts (americanexpress.com, fdic.gov).
How do you get more FDIC coverage?
Concerned with having over $250,000? Here’s what you can do:
| Strategy | How It Works |
|---|---|
| Joint Accounts | Add another individual (e.g., spouse) and you receive another $250K of protection |
| Revocable Trust / Beneficiaries | FDIC covers $250K per beneficiary—thus adding beneficiaries can increase coverage |
| Multiple Ownership Categories | Divide money into categories—such as individual, joint, IRA—to have independent $250K limits |
| Different Banks | Opening accounts at different banks provides each with its own $250K insurance |
Example: How coverage adds up
- You have $250K in your personal AmEx HYSA — fully insured.
- Open a joint account with your spouse another $250K insured.
- You name 2 beneficiaries: that totals $750K coverage under a revocable trust (because each beneficiary counts) (americanexpress.com, investopedia.com).
Why AmEx is a good idea
- No minimums or fees—you can open and hold your account with zero balance .
- Competitive APY—AmEx HYSA provides about 3.8% APY (as of early 2025), close to 10× the national average (investopedia.com).
- Solid access—move money any time through the website or app, with 24/7 assistance behind it.
⚠️ What FDIC doesn’t protect
FDIC insurance does not cover:
- Mutual funds, stocks, bonds, annuities, or cryptocurrencies (americanexpress.com).
- Theft, fraud, or loss as a result of non-bank problems (en.wikipedia.org).
How Does AmEx Stack Up Against Other Online Banks?
| Feature | American Express | Ally Bank | Marcus by Goldman Sachs |
|---|---|---|---|
| FDIC Insurance | Yes | Yes | Yes |
| HYSA APY | ~3.75% (as of 2025) | ~3.90% | ~4.00% |
| Monthly Fees | $0 | $0 | $0 |
| Minimum Balance | $0 | $0 | $0 |
| Mobile App | Yes | Yes | Yes |
Although AmEx provides good rates and security, some rivals might provide higher yields. Nevertheless, AmEx’s brand name and customer service are usually perceived as more high-end.
Finally, is using American Express to save money a safe option?
Of course. Reputable, steady, and federally insured is American Express National Bank. Their high-yield savings account is a good choice if you’re searching for a secure way to earn interest on your savings.
- FDIC coverage up to $250,000. Fairly priced interest rates
- No maintenance costs each month
- No minimum balance requirements
You can also be sure that your money is in capable hands when the brand is well-known.
FAQs: FDIC Insurance & American Express Savings
What would happen if AmEx Bank failed?
The FDIC will reimburse you up to $250,000, usually in a matter of days.
Is fraud covered by FDIC insurance?
No. Fraud and identity theft losses are not covered by FDIC insurance. For that, you would require fraud protection services.
Does my savings account have instant insurance?
Indeed. The moment your deposit is processed, you are covered by the FDIC.
Do American Express credit cards have FDIC insurance?
No. Since credit cards are not deposit products, the FDIC does not insure them. Deposit accounts are the only ones that are.