Bank Savings Accounts

It’s not every day that you see American Express (Stock Quote: AXP) offer a financial product that doesn’t involve a credit card transaction.

But Amex is increasingly becoming more aggressive in the banking products sector. Exhibit “A” this week is the financial giant’s new savings deposit deal. Amex is offering a high-yield savings account that offers a 2.00% APY,

For a savings account deal, the Amex offering seems like the genuine article. In addition to the 2.00% interest rate, which compares quite favorably to the BankingMyWay average savings account of 0.23% this week, there is:

• No minimum deposit

• No monthly fees

• FDIC insured

• And allows for electronic funds transfers

Amex also has some decent certificate of deposit deals, especially at the higher end of the ladder, with a 3.00% rate on its four-year CD and a 3.40% rate on its five-year CD.

CDs

When is a bank CD an insurance policy?

When it’s a 12-month CD from (Discover Bank: Stock Quote: DFS) that lets you off the hook, penalty-wise, for withdrawing funds early after the loss of your job.

The Discover CD can be withdrawn, penalty-free, prior to maturity, as long as you can prove you’ve been laid off. The 2.20% rate is competitive, about twice the 1.12% posted in the BankingMyWay average CD index this week.

According to Discover, there are some hoops to clear before becoming eligible for the CD:

• You need to be a full-time employee when you open the account, and be fully employed for 30 days after.

• You can’t quit your job – you have be let go involuntarily.

• You need to show Discover a layoff notice or documentation that you’re applying for unemployment insurance.

For now, the early withdrawal CD is available from July 1, 2009 to December 31, 2009. You’ll need a minimum $2,500 deposit to open the account.

Money Market Savings

Everbank is a pretty good story, considering the state of the financial services sector these days.

The Jacksonville, Fla. based bank is holding up well in a tough banking environment. In the first quarter of 2009, the bank announced that its equity position had grown to over $541 million, a 49% increase over 2008. Everbank’s assets have grown to $7.6 billion and deposits grew to $5.6 billion - a 28% and 42% year-over-year increases, respectively.

With cash comes confidence – and maybe that’s why Everbank promises its bank customers “a yield within the top 5% of competitive accounts of leading banks. Always.” (That guarantee is straight from the bank’s web site).

To prove that, right now Everbank is offering a money market account with an interest rate of 2.15% for up to $50,000. After three months, the “bonus” rate kicks in and drives the APY up to 3.01%. You’ll need a minimum deposit of $1,500, but you get free online banking and six withdrawals per month, as well as an FDIC-insured deposit.

— For more ways to save, spend, invest and borrow, visit MainStreet.com.