American Express Bank, the banking arm of the credit card company American Express, is offering a personal high yield savings account that currently has an annual percentage yield of 1.85 percent.

Interest earned on the high yield savings account is compounded daily and credited to your account monthly. American Express Bank is also offering some of the best CD rates available these days.

During the credit crisis of late last year American Express along with other financial institutions including Morgan Stanley and Goldman Sachs became bank bank holding companies regulated by the Federal Reserve. The main reason to become bank holding companies was to be able to collect deposits since the credit markets weren’t functioning during the crisis.

Savings account balances are insured by the Federal Deposit Insurance Corporation for up to $250,000. Since savings accounts are variable rate accounts, the 1.85 annual percentgage yield can change at anytime. As with all savings accounts you are limited to six withdrawals per calendar month.