According to the FDIC, as of August 2024, the national average interest rate for high-yield savings accounts in the United States is a mere 0.45%.

American Express (Amex) and Discover high-yield savings accounts offer a competitive 4.25% APY. But which of these two accounts is the better choice for you?

Both accounts have no monthly fees and no minimum balance requirements, making them attractive options for savers.

However, they each come with unique features and limitations that can influence your decision.

This article will delve into the similarities and differences between these two high-yield savings accounts, examining factors such as accessibility, fees, and additional banking services, to help you determine which account will earn and save you more effectively.

Amex vs. Discover High-Yield Savings Accounts Comparison Table

If you already use American Express products, go with Amex HYSA to consolidate all your financial services under one roof—Amex lets you manage your credit card and savings accounts with a single login.

If you use Zelle, go with Discover because it integrates with Zelle for instant peer-to-peer transactions. It also allows international wire transfers but charges a $30 fee per transfer.

So, if you regularly perform international transfers, Discover offers a more direct solution despite the fee.

1. Overview and Interest Rates

Amex HYSA Overview and APY

The American Express® High Yield Savings Account offers a 4.25% Annual Percentage Yield (APY), which surpasses the national average of 0.45% for high-yield Savings Accounts.

Your interest compounds daily and is deposited into your account monthly.

Let’s put this into perspective with a tangible example. Suppose you start with an initial deposit of $1,000 in your Amex High Yield Savings Account. Then, you add $150 every month for the next 5 years. Here’s how your savings would grow compared to the same scenario at the national average rate:

• Initial Deposit: $1,000
• Monthly Deposit: $150
• Interest Rate: 4.25% APY (compounded daily for Amex) vs. 0.45% APY (national average, compounded daily)
• Period: 5 years

Let’s calculate the future value of your investment under both these scenarios.

• Your account balance will reach approximately $11,069 after 5 years.
• In contrast, if you were to invest the same amount in a high-yield Savings Account with the national average interest rate of 0.45%, your balance would only grow to about $10,113 after 5 years.
• That’s a difference of $1,403 in earned interest. 

To calculate potential earnings, Amex provides a convenient savings calculator on their website that you can adjust to see your money’s potential growth based on your specific saving habits and goals.

While the Amex high-yield Savings Account offers impressive interest rates and growth potential, it’s important to note that it doesn’t provide ATM cards, debit cards, or checks. 

However, you can easily transfer funds between your Amex account and other bank accounts.

American Express high-yield Savings Accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor, account type, and ownership category. This protection applies to deposits in American Express National Bank deposit accounts.

It means that in the unlikely event of a bank failure, your savings are protected up to $250,000 per depositor, per account category.

How do you transfer money TO an Amex high-yield Savings Account?

Amex recommends initiating the transfer from the bank where the money is currently held. By pushing the funds from the originating bank, you can expect the money to arrive in your Amex account within 1 to 2 business days after completing the initial account linking process.

How do you transfer OUT of an Amex high-yield Savings Account?

If you need to transfer money from your Amex high-yield Savings Account, the quickest way is to initiate the transfer from the American Express Savings website. In some cases, you may be eligible for express transfers, which can be completed on the same day.

However, if you pull funds from your Amex account using another bank’s website or app, the transfer may take 3 or more business days, subject to the receiving bank’s hold policies.

When transferring money from your Amex high-yield Savings Account to an American Express National Bank account, the funds will be immediately reflected in your Current Balance, and interest will start accruing. However, the money will only become available for withdrawal after 5 business days.

Lastly, Amex offers the convenience of digital statements, which you can access online.

If you prefer to receive paper statements, you can easily opt for this service, and Amex will mail them to you.

Discover HYSA Overview and APY

Discover Bank also offers competitive rates with a 4.25% Annual Percentage Yield (APY).

And like Amex, Discover doesn’t require a minimum deposit to open an account.

One key feature of the Discover high-yield Savings Account is the daily compounding of interest, which is credited to your account monthly. This means you earn interest on your interest every day, and the interest rate applies to the new principal balance daily.

To help you understand how quickly your money can grow, Discover provides an Online high-yield Savings Account calculator that you can use to estimate potential earnings.

For example, starting with $10,000 and saving for five years without topping up, you’ll get $12,312 in total savings. That’s $2,312 total interest.

Your funds are FDIC-insured up to the maximum amount allowed by law. This means that your savings are protected up to $250,000 per depositor, per account category.

Discover also offers an overdraft protection service for your high-yield Savings Account. This lets you link your high-yield Savings Account to your checking account, providing a safety net in case of an overdraft.

Suppose a transaction exceeds the available balance in your checking account. In that case, funds will be automatically transferred from your linked high-yield Savings Account to cover the shortage, helping you avoid costly overdraft fees.

Pro Tip: Look beyond the APY and consider account opening bonuses, which can significantly increase the value of your initial deposit.

2. Deposit and Withdrawal Options

Amex Deposit and Withdrawal Options

Although American Express National Bank doesn’t have physical retail locations, it offers a range of convenient methods for moving money into and out of your high-yield Savings Account.

To get started, provide the account and routing numbers of your external bank account to link your Amex high-yield Savings Account to an external bank account.

Once the link is established, you can easily transfer money between the two accounts.

• Online Banking Portal: To deposit or withdraw funds through the American Express online banking portal, log into your account and click the “Make a Transfer” option. Specify the amount you wish to move and whether you want to deposit funds into your Amex account or withdraw money.
• Mobile App: Use the American Express mobile app to transfer funds between your linked accounts. The app also lets you deposit checks using the mobile check deposit feature.
• Direct Deposit: If you receive regular paychecks or Federal payments, set up direct deposit by providing your employer or the relevant Federal agency with your Amex high-yield Savings Account and routing numbers. Your funds will be automatically deposited into your account on a recurring basis.
• Check Transactions: In situations where you need to deposit or withdraw funds via check, you have two options. To withdraw funds, call American Express customer support at 1-800-446-6307 to request a check. The check will be mailed to the address associated with your account. To deposit funds, write a check payable to American Express National Bank and include your high-yield Savings Account number on the memo line.

Limitations

• You can only deposit up to six checks totaling no more than $50,000 within any seven-day period, including the day of your last deposit.
• Each individual mobile check must not exceed $25,000, though these limits are subject to change.
• As of May 2024, the maximum total account balance is $5 million.
• It may take up to 3 business days before transfers appear in your external bank account.

Discover Deposit and Withdrawal Options

Discover Bank offers multiple convenient ways to deposit and withdraw money from your Online high-yield Savings Account.

To make deposits, you have several options at your disposal:

• Mobile Check Deposit: With Discover’s mobile app, you can easily deposit checks using your smartphone or tablet.
• Online Transfer: If you have another eligible Discover Bank account, you can seamlessly transfer money to your Online high-yield Savings Account through the online banking portal. Additionally, you can link an external bank account and initiate transfers from that account to your Discover savings.
• Direct Deposit: You can simplify your savings strategy by setting up direct deposit. This allows your employer or other recurring payments to be automatically deposited into your Discover high-yield Savings Account.
• Mail: If you prefer traditional methods, you can mail a check payable to yourself along with a deposit slip or account number. Discover will process the check and credit your account accordingly.

To withdraw funds from your Online high-yield Savings Account, Discover provides the following options:

• Online Transfer: You can move funds from your Discover savings to another Discover Bank account or an external linked account through the online banking platform.
• Wire Transfer: Discover allows you to initiate wire transfers from your high-yield Savings Account if you need to send money domestically or internationally. A service charge may apply for this option.
• Official Bank Check: If you require a physical check, you can request an official bank check from Discover. They will process your request and mail the check to the designated recipient.

NOTE: Unlike Amex, Discover high-yield Savings Accounts don’t have a maximum balance requirement.

Limitations

• A withdrawal limit of six transactions per statement cycle
• A charge of $30 per wire transfer

3. Fees and Charges

Both the American Express high-yield Savings Account and the Discover high-yield Savings Account have no monthly fees, minimum balance requirements, or minimum deposit requirements.

This makes them the best option if you’re looking for a high-yield Savings Account with minimal fees and no barriers to entry.

4. Accessibility and Convenience

Amex High-Yield Savings Account

Amex high-yield Savings Accounts provide a seamless and convenient banking experience through their online and mobile platforms.

As an account holder, you have 24/7 access to your high-yield Savings Account.

You can log into your account through the website or the Amex® App using your American Express User ID and password, and you’ll have instant access.

However, accessibility and convenience extend beyond just managing your account and accessing cash. American Express Savings also offers exceptional customer service, available 24/7 at 1-800-446-6307. 

You can also contact them by fax at 1-800-542-0779 or by mail. This multi-channel approach to customer service ensures that you can get the support you need in the most convenient way.

Discover High-Yield Savings Account

Like Amex, Discover high-yield Savings Accounts also offer various features that prioritize accessibility and convenience.

One is the Discover Mobile Banking App. One of the standout features of the Discover Mobile Banking App is the Mobile Check Deposit. With this feature, you can deposit checks anytime, anywhere.

Also, you can set up and manage customizable account and activity alerts through the app. These alerts inform you about your balance, deposits, rewards, and other important account information.

When it comes to customer support, Discover high-yield Savings Accounts provides 24/7 customer service at 1 (800) 347-7000. You can open a new high-yield Savings Account, ask questions about your balance, or seek guidance.

You can also reach their customer service at:

• Social Media: Reach out via Discover’s official Facebook page or tweet to them @Discover on Twitter.
• Online: Access your account to use the secure message center or live chat feature. You can also manage your account through your online account or the mobile app.
• Mail: Send any correspondence to:

Discover Bank

PO Box 30416

Salt Lake City, UT 84130

5. Additional Features and Benefits

Amex High-Yield Savings Account

One of the standout features of the Amex high-yield Savings Account is the single login credentials.

You can access your high-yield Savings Account in the Amex® App by creating new American Express login credentials. You can also link your high-yield Savings Account to your Card profile, allowing you to access both accounts at americanexpress.com with a single User ID and password.

Another powerful feature of the Amex high-yield Savings Account is the ability to set up recurring transfers. For example:

• Set up a recurring transfer from your checking account to your Amex high-yield Savings Account
• Choose the amount ($500) and frequency (monthly)
• Select the start date and end date (or choose to continue until you cancel)

Once set up, the funds will automatically move from your checking account to your high-yield Savings Account each month.

Amex high-yield Savings Accounts also integrate with other American Express products. 

If you use personal finance tools like Mint or Quicken, while Amex high-yield Savings Accounts don’t directly integrate with these platforms, you can still make them work together. You can download your transactions from your Amex high-yield Savings Account and import them into Mint or Quicken to track your savings progress alongside your other financial accounts.

Note: Amex high-yield Savings Accounts do not offer a debit card or ATM. However, with the ease of online and mobile transfers, accessing your money when needed is still quick and convenient.

Discover High-Yield Savings Account

One of the most convenient features is the ability to set up direct deposit.

You can also use Discover’s Direct Deposit Form or set it up through your employer or other payors by providing your Discover Bank account and routing numbers.

One of the biggest advantages of using direct deposit with Discover is the Early Pay feature. This free feature allows you to access your direct deposited funds up to two days early, giving you more flexibility and control over your money.

Early Pay is automatically available to checking, savings (excluding IRA savings), and money market customers who receive qualifying ACH direct deposits.

Also, when setting up direct deposit with Discover through the automatic setup, you have the option to choose how much of your paycheck is deposited:

• Full paycheck
• Partial paycheck – you can specify an amount, percentage, or remainder (after existing allocations are made)

Another benefit of having a Discover high-yield Savings Account is its integration with Zelle. With Zelle, you can easily send and receive money directly from your Discover account to friends and family who also use the service.

To use Zelle, your Discover checking, savings, or money market account must be open for at least 90 days.

How to Open an Amex High-Yield Savings Account

Go to the American Express high-yield Savings Account sign-up page and click “Create New Account” to start.

Provide your personal information as you would like it to appear on the account, including:

Provide your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). The USA PATRIOT Act requires this information for everyone opening a new account.

Provide your email address, which will be used for communication and to send your account confirmation.

Next, complete the Tax Withholding section, where you’ll specify your tax withholding preferences.

Read and agree to the Terms & Conditions of the American Express high-yield Savings Account.

Choose your preferred method to fund your new account in the “Add Money” section. You can either link your current bank account or mail a check.

After submitting your application, you’ll receive a confirmation email within minutes.

Once you receive the confirmation email, register your online high-yield Savings Account by following these steps:

• Sign in to your account using the credentials you created during the application process.
• If you fund your account by linking an external bank account, complete the linking process, which can take up to 2 days.
• If you opted to mail a check, follow the instructions in the confirmation email to complete the funding process.

American Express will use your details throughout the application process to verify your identity by checking public records. This verification process does not affect your credit score.

How to Open a Discover High-Yield Savings Account

To open a Discover high-yield Savings Account, you can complete the application online or over the phone. 

Visit the Discover high-yield Savings Account page and click “Open an account.”

Choose “Continue” under the “New to Discover?” section on the next page.

Fill in your personal details.

Note: Discover requires your SSN to verify your identity and comply with federal regulations.

Next, read through the account disclosures to understand the terms and conditions of your new Discover high-yield Savings Account.

Then, make your initial deposit, if desired. However, a minimum initial deposit is not required to open a Discover high-yield Savings Account, so you can skip this step if you prefer.

Complete the application process by agreeing to the terms and conditions and submitting your application.

If you prefer to open your Discover high-yield Savings Account over the phone, call Discover’s customer service at 800-347-7000. Customer service representatives are available 24/7.

So, Which High-Yield Savings Account is the Best Between Amex and Discover?

Both American Express and Discover provide highly competitive, high-yield savings accounts with an impressive 4.25% APY, user-friendly platforms, and a range of beneficial features.

However, some notable differences between the two accounts may influence your decision.

Amex allows unlimited deposits and withdrawals, making it convenient for those who frequently move money in and out of their savings accounts. However, the maximum total account balance limit is $5 million.

On the other hand, Discover provides a comprehensive online banking experience and unique perks like early access to direct deposits. While it doesn’t have a maximum balance limit, Discover does charge a $30 fee for wire transfers, which could be a drawback if you frequently use this method to move money.

So, the best choice between Amex and Discover depends on your financial needs and priorities. When deciding, consider factors such as ease of use, accessibility, customer service, and additional features.

Don’t let your hard-earned money languish in a low-interest account. Start earning more today. Explore Amex and Discover’s high-yield high-yield Savings Accounts and find the perfect fit for your financial goals.

Pro Tip: Monitor interest rate trends. Although both Amex and Discover currently offer competitive rates, these can change. Regularly review your account’s performance against the market to decide whether to switch or stay. 

Frequently Asked Questions