American Express Rewards Checking Account Review [2024]
Have you heard about an Amex checking account and wondered whether it is worth it? Introduced in 2022, this checking account offers competitive interest rates and some unique advantages that make the option stand out.
In our Amex checking account review, you can learn about the benefits of this offer and how to get the most out of it. Let’s go!
Amex Rewards Checking Account: Features and Benefits
The main benefit of an American Express checking account is its high interest, which is currently ten times higher than the national rate. You will also earn a 1% APY each time you put money into the account. This passive income has no fees, so it’s an excellent way to increase your savings. Furthermore, there are no minimum balance requirements, so you can start earning right away regardless of how much money you deposit.
Other advantages and rewards you will get access to include the following:
- No monthly or opening fees;
- Earn one point for every $2 spent in eligible categories with your American Express debit card;
- Accessible withdrawal of money without fees at over 37,000 locations in the United States;
- Zero-liability fraud protection, as well as 90-day purchase protection;
- Convenient banking app for transferring funds, tracking rewards, mobile check deposits, and more;
- 24/7 customer service.
As for the reward points that you earn, their value can differ depending on how you spend them, but it is around 0.5 to 1 cent per point. Linking an American Express credit card gives you greater freedom in using your earned points. In this case, you can redeem points via the Amex travel portal, use them on purchases, convert them to gift cards, or transfer them to a partner loyalty program.
Another advantage worth mentioning is that there is no limit on how much rewards you can earn using the debit card. So, if you make most of your purchases using the Amex card, you may earn a significant amount.
What Are the Limitations of American Express Rewards Checking Account?
Any American Express checking account review wouldn’t be complete without talking about the offer’s downsides. Only current Amex credit cardholders can immediately open a rewards checking account. If you don’t belong to this category, you’ll need to get a consumer card account first and then wait at least three months to be able to apply. Another restriction is that if you have an American Express Business Checking account, you are not eligible to open this checking account.
As it was mentioned previously, you earn 1 point for $2 spent on eligible purchases. Depending on how you use a card, the resulting bonuses may be miniscule. To overcome this restriction, you can use other American Express cards that also earn reward points. Some of the great options include an Amex EveryDay Credit Card and an American Express Gold Card, which is particularly well-suited for shopping at supermarkets and eating out.
It is important to note that the rewards checking account is quite limited in terms of banking services. You won’t be able to make online bill payments or outgoing wire transfers. There is also no overdraft protection.
Additionally, you should keep in mind that you will have a fully online bank account. It means that you will both open and manage it exclusively online in your browser or by installing a mobile app.
It is a good idea to take a look at different savings accounts to help you decide whether the Amex one is right for you.
Discover checking account
Compared to American Express, this option won’t provide you any APY, which is a significant disadvantage. When using a debit card, you will earn 1% cash back on purchases up to $3,000 every month. Similarly to Amex, there are next to no fees.
SoFi checking account
Another offer you may be interested in is from SoFi. With this checking account, you will receive 0.50% APY, which is higher than what is offered by Discover but still lower than Amex. There is no minimum deposit established and no fees. You can also get a cash bonus of up to $300 when you have a direct deposit set up.
Final Thoughts
If you are already an American Express cardholder, opening a rewards checking account is a good way to increase your savings. You get an opportunity to earn some money passively with competitive interest and with no requirements for minimum balances. You won’t have to pay fees, and you can even earn rewards by using an associated debit card.
The downside is that you need to have an Amex credit card for at least three months to access a checking account. However, if you are willing to wait for a while, this option may still work for you.
FAQ
Does Amex have debit cards?
Amex offers prepaid cards, which operate in the same way as debit cards, allowing holders to use their money up to a certain sum added to the card.
What are the main benefits of an American Express Checking Account?
The biggest advantage of the offer is the absence of fees, and 1% APY once you open a checking account. There is also no minimum deposit. When you use an Amex debit card, you will earn 1 point for every $2 you spend using it.
How can you open an account online?
To open a checking account from American Express, you need to be a consumer card owner. This way, you will already have an account, and you need to log into it either on the official website or in the app. After that, you can fill out an application form for a checking account.
What is the interest rate of an American Express Rewards Checking Account?
As of 2024, the interest rate of an American Express rewards checking account is 1%.
