American Express launches its first digital-checking account for rewards-hungry consumers

[gdale6]

• he card company on Tuesday launched Amex Rewards Checking to its U.S. customers.
• Any non-business card member in good standing is eligible for the no-fee account, according to Eva Reda, American Express’ general manager for consumer banking.
• Customers who enjoy racking up points on transactions can use the account’s debit card to earn one reward point for every $2 spent, as well as a 0.50% annual yield on balances.

https://www.cnbc.com/2022/02/08/american-express-launches-its-first-digital-checking-account-for-rew...

[dragontears]

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@gdale6 wrote:

• he card company on Tuesday launched Amex Rewards Checking to its U.S. customers.
• Any non-business card member in good standing is eligible for the no-fee account, according to Eva Reda, American Express’ general manager for consumer banking.
• Customers who enjoy racking up points on transactions can use the account’s debit card to earn one reward point for every $2 spent, as well as a 0.50% annual yield on balances.

https://www.cnbc.com/2022/02/08/american-express-launches-its-first-digital-checking-account-for-rew...

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Blah

Why would I use a debit card to get 0.5% back when almost every rewards credit card will give at least 1%?

[DONZI]

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@dragontears wrote:

Blah

Why would I use a debit card to get 0.5% back when almost every rewards credit card will give at least 1%

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RE: amex personal checking

Agreed.

I have debit cards that offer 1% cash back for each $1 and have some that are similar to the amex debit card for 1% cash back for every $2 spend. In addition, I prefer paypal key over using/unlocking any of my debit cards for domestic use. So far, in the few cases PP key doesn't work for me I have the option for credit card use.

However, the purchase and fraud protection on the debit card are nice perks and the 0.50% APY on checking is better than most of my deposit accounts.. Sure wish they'd matched the 1.1% of the business checking.

[Red1Blue]

How is this American Express account different from Kabbage Bank Account which is owned by American Express? Are they going to convert Cabbage accounts into Amex?

Forget about my previosu post. When I re-read it does say Personal Non Business Account

[NYJfan]

It's different from Kabbage because Kabbage is a business checking account and this is a personal checking account.  Kabbage also doesn't pay rewards for debit spend.  Kabbage does pay 1% APY vs. 0.5% APY here.

Reasons to use this account vs. something like Discover which pays 1% cashback:

1) It's a checking account that pays 0.5% interest and pays rewards on debit purchases (Discover does not pay interest)

2) You spend a lot on debit. AMEX has a $5k/day spend limit (Discover only pays a maximum of $30/month in rewards)

3) You value Membership Rewards at $0.02/pt or better.  In this case you're getting better than 1% cashback even while earning 0.5 MR per $1 spent

4) You need a free way to keep your Membership Rewards alive and don't want to open up a new credit account with an Everyday or Blue Business Plus

No use for me, but I assume they'll offer sign up bonuses at some point and then I'll hop on.

[DONZI]

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@NYJfan wrote:

4) You need a free way to keep your Membership Rewards alive and don't want to open up a new credit account with an Everyday or Blue Business Plus

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Good point, I hadn't thought of that!

[SoCalGardener]

Meh. I like Amex and I like rewards, but I'm so happy with my existing BofA checking account, I won't even consider opening one of these. And there really wouldn't be any benefit anyway, based on the way I use my checking account, i.e., for paying bills via BofA's bill pay, writing the occasional check, and that's about it. I *never* use ATMs. I rarely use my debit card to pay for anything, as I prefer to put things on CCs and get multi-percent CB for doing so, then PIF each month so there's no interest charged. Kind of like using a debit card only with benefits. Debit card with benefits....hmmm....that has a nice ring to it.