High Yield Savings
CDs
SupportHow does the interest on a Certificate of Deposit (CD) compound, and can I choose to pay out the interest on a Certificate of Deposit (CD)?
Interest on all Savings accounts compounds daily and posts to the account monthly. You can choose to receive payments of interest from your Certificate of Deposit account. You can have the interest paid out to you via monthly transfer to your Savings account or linked external account. You can also choose to have the interest paid via check on a monthly, quarterly, or annual basis. If you choose to have interest paid out, instead of remaining in the account, it will affect the Annual Percentage Yield Earned (APYE) because the Annual Percentage Yield (APY) is calculated assuming the interest will remain on deposit.
Can I Choose to Pay Out the Interest on a Certificate of Deposit (CD)?
You can choose to receive payments of interest from your American Express Certificate of Deposit Account. You can have the interest paid out to you via monthly transfer to your American Express Savings Account or your linked external account.
You can also choose to have the interest paid via check on a monthly, quarterly, or annual basis. Keep in mind that if you choose to have interest paid out, instead of leaving it in the account, it will affect the Annual Percentage Yield Earned (APYE). That’s because of compounding interest. The Annual Percentage Yield (APY) is calculated assuming the interest will remain on deposit. If you withdraw this interest, you lose out on the compounding effect on the amount that you withdraw.
How to Increase Your Yield on a CD Account
If you’re looking for a CD account, there are a few ways that you can increase your potential returns. These include:
Check the Interest Rate: Before opening a CD, check the interest rate that’s being offered. You’ll also want to consider available term lengths, withdrawal penalties, fees, and more.
Increase Your Deposit: One way to increase your yield is to increase your initial deposit. By making a larger deposit, you can typically generate a higher return, as long as you don’t withdraw the funds early.
Look for a CD With a Longer Term: Keep in mind that in some cases, keeping your funds in a CD for longer could mean a higher interest rate. Be sure to check what options are available, and compare interest rates, to find an option that aligns with your financial goals.
Learn More About an American Express CD Account
To learn more about an American Express CD, visit: American Express Certificate of Deposit (CD).
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* The Annual Percentage Yield (APY) as advertised is accurate as of . Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened. Interest Rate and APY of a Certificate of Deposit account is fixed once the account is funded. [There is no minimum balance required to open your Account, to avoid being charged a fee, or to obtain the Annual Percentage Yield (APY) disclosed to you]
** The national rate referenced is from the FDIC's published Monthly Rate Cap Information for Savings deposit products. Visit the FDIC website for details.
1 There is no minimum balance required to open your Account, to avoid being charged a fee, or obtain the Annual Percentage Yield (APY) disclosed to you.
2 The interest rate and Annual Percentage Yield (APY) will be disclosed in your account-opening documents, which you will receive after funding your Account. The interest rate and APY for your CD will be fixed and will either be (i) the rate reflected at application submission or (ii) the rate being offered when your CD is funded, whichever is higher. All CDs must be funded within 60 calendar days from the time we approve your application or will be subject to closure. After the CD is opened, additional deposits are not permitted. Early CD withdrawals may be subject to significant penalties which could cause you to lose some of your principal. Please see the Consumer Deposit Account Agreement and Savings Schedules for additional information.
3 For purposes of transferring funds to or from an external bank, business days are Monday through Friday, excluding holidays. Transfers can be initiated 24/7 via the website or phone, but any transfers initiated after 7:00 PM Eastern Time or on non-business days will begin processing on the next business day. Funds deposited into your account may be subject to holds. See the Funds Availability section of your Consumer Deposit Account Agreement and Savings Schedules for more information.
4 Calculations are estimates of expected interest earned. Actual results may vary, based on various factors such as leap years, timing of deposits, rounding, and variation in interest rates. The first recurring deposit is assumed to begin in the second period after any initial deposit.