American Express Launches Digital Checking Accounts: Everything to Know

by Megan Molseed

American Express has announced the launch of the company’s first digital checking account. And the new checking platform is offering plenty of awards to award-loving customers.

On Tuesday morning, American Expressed announced the news that the no-fee Amex Rewards Checking will be available to U.S. customers. These accounts are available to any non-business card member who is currently in good standing. The Amex Rewards Checking will be offering all kinds of options to rack up points. Customers can earn one reward point for every $2 spent. The company is also offering a 0.50% yield on balances to Amex Rewards Checking members; and no minimum balance.

American Express Checking Will Bring the Same Big Perks to Consumers

This is exciting news for American Express customers. The company has long been known for the many perks offered through its credit card opportunities. So, this move into digital checking seems to be the perfect next step.

“The reason we are putting together this really nice APY and the rewards is to absolutely maximize the loyalty we can get from those customers,”  notes Eva Reda, Amex general manager for consumer banking.

“The time just feels right based on where customers’ heads are, who’s using the product and how mass this sort of a solution is quickly becoming,” the Reda adds as per CNBC.

Last year, American Express offered a similar program to small business owners which the company dubbed Kabbage Checking. This Amex Rewards Checking is the first checking account offered to Amex consumers by the company. However, Eva Reda does note that American Express has offered online savings accounts to card customers since around 2008. American Express notes that the company had more than 56 million Amex cards in circulation last year alone. However, there is no breakdown separating the personal American Express customers from business users in these numbers.

Offering An Easy Transition; and Plenty of Opportunity

American Express notes that the transition for customers while opening the Amex Rewards Checking account options will be fairly easy for existing customers. The new accounts will be integrated into the existing American Express app. Reda notes that the new checking accounts will also provide plenty of purchase protection on debit purchases as well as “round-the-clock customer service.”

A big push drawing the company to venture into the world of digital checking accounts has to do with drawing in younger users to the American Express brands. Additionally, the company sees this opportunity as something that should appeal to millennial and Gen Z customers, Reda notes.

“There is no question in my mind that some portion of our customer base are going to decide this is their primary account,” the American Express consumer banking general manager notes.

“And others who are going to try it out and start out with this as their second or their third account,” Reda adds.