American Express Rewards Checking Review [2024]
Known for its exceptional customer service and high-value offers, American Express is among the most trusted banks in the US. Have you wondered whether an Amex checking account is worth it for you? It combines the flexibility and convenience of a traditional checking account with the benefits of reward programs, typically seen in credit cards. Introduced in 2022, Amex checking accounts offer competitive interest rates and have unique advantages rarely seen on the market.
In our Amex checking account review, you can learn all 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 reason to opt for 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 comes with 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:
- No monthly or opening fees;
- Earn one point for every $2 spent in eligible categories with your American Express Debit Card;
- Access to fast money withdrawal at over 70,000 Allpoint and MoneyPass ATMs nationwide;
- Convenient banking app for transferring funds, tracking rewards, mobile check deposits, and more;
- 24/7 customer service.
Linking an American Express Credit Card to your account gives you even more freedom to use your reward points. In this case, you’ll get the opportunity to 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, the rewards will be pretty substantial.
What Are the Limitations of American Express Rewards Checking Account?
An Amex rewards checking review wouldn’t be complete without talking about the offer’s downsides. Only Amex cardholders can 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 a month to be able to apply. Another restriction is that if you have an American Express Business Checking account, you are not allowed to also open a personal one.
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 minuscule. To overcome this restriction, you can use other American Express cards that also earn reward points. Some of the great options include Amex EveryDay Credit Card and Amex Gold Card, which are well-suited for daily purchases like groceries and restaurants.
It is also important to note that the rewards checking account is quite limited in terms of banking services. For instance, you won’t be able to make online bill payments or outgoing wire transfers. There is also no overdraft protection.
Furthermore, 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 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 with any APY, which is a significant disadvantage. When using a debit card, you will earn 1% cash back on purchases up to $3,000 per 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 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 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 no requirements for minimum balances. You also won’t have to pay fees and can even earn rewards by using an associated debit card.
As you can see from our American Express Debit Card review, the downside is that you need to have an Amex card for at least a month to access the offer. However, if you are willing to wait, an Amex account may work for you in the end.