AMEX Expands Membership With New AMEX Rewards Checking Account
Feb 8, 2022, 8:24 am
#1
FlyerTalk Evangelist
Original Poster
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,891
AMEX Expands Membership With New AMEX Rewards Checking Account
https://about.americanexpress.com/al...t/default.aspx
Interesting!
NEW YORK--(BUSINESS WIRE)-- American Express (NYSE: AXP) today launched American Express® Rewards Checking (Amex Rewards Checking), the company’s first all-digital consumer checking account, currently available for eligible U.S. Consumer Card Members. Amex Rewards Checking offers a range of benefits, including Membership Rewards points for eligible Debit Card purchases, an annual percentage yield (APY) rate that is 10 times higher than the national rate1 and Purchase Protection2 for eligible purchases, all with no monthly maintenance fees or minimums and world-class customer service.
“Our Members want more banking products and services from us,” said Eva Reda, Executive Vice President and General Manager, Consumer Banking, American Express. “And they want more from their checking account, without giving up the benefits that are important to them. That’s why we built Amex Rewards Checking to deliver more value for Members with the powerful and trusted backing of American Express. It’s digital checking without compromises.”
“Our Members want more banking products and services from us,” said Eva Reda, Executive Vice President and General Manager, Consumer Banking, American Express. “And they want more from their checking account, without giving up the benefits that are important to them. That’s why we built Amex Rewards Checking to deliver more value for Members with the powerful and trusted backing of American Express. It’s digital checking without compromises.”
Feb 8, 2022, 9:08 am
#3
Join Date: Sep 2004
Location: CLT
Programs: US CP, SPG Gold
Posts: 592
It is interesting but, aside from the rate and purchase protection, the Schwab checking offering is superior (and probably many others are, too).
I don't find MR on a debit card interesting - I'd either use the Amex credit/charge card or my 2% visa. I do suppose this gets Amex back into Costco, but that feels like a flimsy reason to me to move checking accounts.
That is admittedly a nice rate for a checking account, and the fee disclosure does indicate there are essentially no fees for anything bank-related, including overdrafts, though you have to pay for checks. For someone like me who generally has an average checking balance of $3-5,000, that's between $15 & $25/year pre-tax. Not bad for free money. I suppose there's not much reason to have an Amex savings account paying .4, so move a $25,000 emergency savings balance over, now it's $125 and we're talking a decent dinner somewhere.
I think I'd need to see ATM rebates everywhere, no matter the ATM (not just Moneypass), and then I might be a convert. Until then, I like working with Schwab - it's damned near impossible to encounter a fee with them in everyday life.
I don't find MR on a debit card interesting - I'd either use the Amex credit/charge card or my 2% visa. I do suppose this gets Amex back into Costco, but that feels like a flimsy reason to me to move checking accounts.
That is admittedly a nice rate for a checking account, and the fee disclosure does indicate there are essentially no fees for anything bank-related, including overdrafts, though you have to pay for checks. For someone like me who generally has an average checking balance of $3-5,000, that's between $15 & $25/year pre-tax. Not bad for free money. I suppose there's not much reason to have an Amex savings account paying .4, so move a $25,000 emergency savings balance over, now it's $125 and we're talking a decent dinner somewhere.
I think I'd need to see ATM rebates everywhere, no matter the ATM (not just Moneypass), and then I might be a convert. Until then, I like working with Schwab - it's damned near impossible to encounter a fee with them in everyday life.
Feb 8, 2022, 10:48 am
#4
Join Date: Dec 2020
Location: Bay Area, CA
Programs: Hyatt Globalist, Marriott Titanium, Hilton Diamond, IHG Platinum
Posts: 57
Amex new digital checking account with 1x MR Per $2 Spend
This seems to be a game changer. You can now earn reward points with your checking account, though only 0.5 points/dollar. There are definitely a lot of places where paying by credit card are either not allowed or charges 1-3% additional fee, so this card can definitely be great for such use cases (lease, property tax and etc.)
https://www.americanexpress.com/en-u...line-checking/
https://www.americanexpress.com/en-u...line-checking/
Feb 8, 2022, 11:16 am
#5
FlyerTalk Evangelist
Join Date: Aug 2001
Location: Finally back in Boston after escaping from New York
Posts: 13,644
Mike
Feb 8, 2022, 11:21 am
#6
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
We have a life insurance policy that accepts payment by debit card, but not credit card. The website lists American Express, and twice I was able to pay with a credit card, but they fixed it . This could be useful for that type of transaction.
Feb 8, 2022, 2:04 pm
#7
Join Date: Sep 2004
Location: CLT
Programs: US CP, SPG Gold
Posts: 592
Sadly my tax payments are usually higher than $5k and I typically put those on my 2% Visa anyway when they are necessary, as PayUSATax has a 1.87% fee so I can make an admittedly small amount on the spread and I can do it in one transaction.
Feb 8, 2022, 2:23 pm
#8
Join Date: Mar 2013
Location: EWR
Programs: World of Hyatt, Marriott Bonvoy, Hilton Honors, UA Mileage Plus
Posts: 1,255
Pretty hard for me to get excited about this. I mean, how much are you really putting on a debit card? I'd rather get 1% cashback with Discover debit vs 0.5 MR/$1.
I suppose if the following is true:
You have significant spend that can only be on real debit cards
AND
Visa gift cards can't be used as debit
AND
AMEX debit can be used (lots of debit is still specifically Visa/MC)
AND
It's under $5k/day
AND
AMEX won't shut you down for ploughing significant volume
It could be a good account.
Personally, I'll just wait until they over a SUB. The card looks cool.
I suppose if the following is true:
You have significant spend that can only be on real debit cards
AND
Visa gift cards can't be used as debit
AND
AMEX debit can be used (lots of debit is still specifically Visa/MC)
AND
It's under $5k/day
AND
AMEX won't shut you down for ploughing significant volume
It could be a good account.
Personally, I'll just wait until they over a SUB. The card looks cool.
Feb 8, 2022, 2:36 pm
#9
Join Date: Apr 2017
Location: WAS
Programs: Free Agent
Posts: 1,757
I'd be wary of this until it's a few years old.
I used to have an Amex High Yield Savings account, and it was a complete PITA to administer. After multiple mishaps, I closed the account. Even after shutting it down, it continues to appear in my online account and multiple calls to Customer Service and Tech Support result in me being told that there's no way for their IT to stop displaying the account.
I have no doubt that it's possible for Amex to invest in building and deploying the correct infrastructure to run checking accounts (and manage the required regulatory compliance) but their track record for their non-Charge/Credit Card Products is pretty bad. I'm very skeptical that they've done so here.
I used to have an Amex High Yield Savings account, and it was a complete PITA to administer. After multiple mishaps, I closed the account. Even after shutting it down, it continues to appear in my online account and multiple calls to Customer Service and Tech Support result in me being told that there's no way for their IT to stop displaying the account.
I have no doubt that it's possible for Amex to invest in building and deploying the correct infrastructure to run checking accounts (and manage the required regulatory compliance) but their track record for their non-Charge/Credit Card Products is pretty bad. I'm very skeptical that they've done so here.
Feb 8, 2022, 3:04 pm
#11
Join Date: Apr 2008
Location: MSP
Programs: Delta SkyMiles GM/United Mileage Plus/Hilton Honors
Posts: 166
I'd be wary of this until it's a few years old.
I used to have an Amex High Yield Savings account, and it was a complete PITA to administer. After multiple mishaps, I closed the account. Even after shutting it down, it continues to appear in my online account and multiple calls to Customer Service and Tech Support result in me being told that there's no way for their IT to stop displaying the account.
I have no doubt that it's possible for Amex to invest in building and deploying the correct infrastructure to run checking accounts (and manage the required regulatory compliance) but their track record for their non-Charge/Credit Card Products is pretty bad. I'm very skeptical that they've done so here.
I used to have an Amex High Yield Savings account, and it was a complete PITA to administer. After multiple mishaps, I closed the account. Even after shutting it down, it continues to appear in my online account and multiple calls to Customer Service and Tech Support result in me being told that there's no way for their IT to stop displaying the account.
I have no doubt that it's possible for Amex to invest in building and deploying the correct infrastructure to run checking accounts (and manage the required regulatory compliance) but their track record for their non-Charge/Credit Card Products is pretty bad. I'm very skeptical that they've done so here.
Feb 8, 2022, 3:10 pm
#12
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
Currently, Debit Card Members can only redeem Membership Rewards points for a deposit into their checking account. However, if they also have a Membership Rewards Account in connection with a Card Account, their Rewards Accounts can be linked and they will have access to all redemption options offered with that Card Account.
Feb 8, 2022, 3:29 pm
#13
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
I went far enough into the enrollment process to retrieve the Terms (69 pages, attached). They only offer Individual accounts, with no provision for designating a beneficiary. I will think about whether we are sufficiently interested to warrant reading more.
Feb 8, 2022, 5:09 pm
#14
Join Date: Mar 2013
Location: EWR
Programs: World of Hyatt, Marriott Bonvoy, Hilton Honors, UA Mileage Plus
Posts: 1,255
According to the fees disclosure they charge for paper checks.
Feb 8, 2022, 6:33 pm
#15
Join Date: Sep 2004
Location: CLT
Programs: US CP, SPG Gold
Posts: 592
To pay for a $10 book of checks, you'd need to have $2,500 parked in the account for an entire year, assuming the rate goes unchanged, not accounting for taxes.
I really want to like this account but I am just not motivated to leave Schwab Bank by any of this. 1%, free checks, no other fees, and ATM rebates anywhere, and then we're talking.
I really want to like this account but I am just not motivated to leave Schwab Bank by any of this. 1%, free checks, no other fees, and ATM rebates anywhere, and then we're talking.