American Express launched a new checking account for small businesses last week, marking the company’s entry into the growing market for business banking products. It comes with a debit card, online account management tools, and access to MoneyPass ATMs.
The bank is also offering a welcome bonus of 30,000 Membership Rewards points when customers open a business checking account and make qualifying transactions. These can be converted to travel or redeemed for gift cards.
1.1% APY
If you have a large business or have a significant amount of cash in your checking account, American Express has a great offer for you. With a 1.1% APR on balances up to $500k, this is one of the highest-yield business checking accounts out there, and it also has no monthly maintenance fees.
Amex is also offering a new bonus for the business checking account, which is 30,000 Membership Rewards points, up from 25,000 previously. You can earn this bonus by depositing $5,000 or more in a non-Amex source into your account within 20 days of opening the account and maintaining an average daily balance of $5,000 or more for 60 days from the date of the $5,000 deposit.
The APY isn’t the best out there, but it is higher than other high-yield business checking accounts like Bluevine and Kabbage, which Amex owns. Plus, you can open up to 10 accounts per business and earn 1.30% APY on each one, up from 1% APY when you open just one.
Other features include mobile check deposit, bill pay, and a one-stop app that allows you to manage any American Express card you have in the app. It’s a digital-first, branchless account that makes it easy to manage on your own or with the help of a specialist, and it has 24/7 customer support.
No Monthly Fee
The business checking account from American Express offers a lot of perks to new and existing customers, including no monthly fees. It also comes with a debit card, online tools, and access to MoneyPass ATMs.
However, it does have some limitations that could dissuade some business owners from choosing the bank. First, it doesn’t accept cash deposits — that’s great for some companies, but not so much for others. Additionally, the mobile app is iOS-only for now.
On the plus side, you can earn a welcome bonus of 30,000 Membership Rewards points when you open the account and complete qualifying activities. These points can be redeemed for travel, gift cards, and more.
But it’s important to note that this offer is only available through January 3. You must deposit at least $5,000 within 20 days of opening the account, make 10 transactions and upload certain business documents — articles of incorporation, certificate of formation, or DBA certificates — as part of the application process.
In addition, you must maintain an average balance of $5,000 for 60 days. If you meet all of these requirements, then 60,000 Membership Rewards points will be added to your Account.
That would be worth $300 in travel, depending on which card you hold. For instance, the Business Platinum cardholder could redeem those points for airfare at a rate of 1 cent each, while the Blue Cash Everyday cardholder could get 1.25 cents each.
No Physical Branch Locations
American Express is best known for its credit cards, but the company also offers other financial products including savings accounts and certificates of deposit. These products are offered through the Salt Lake City-based consumer banking subsidiary, American Express National Bank.
High-yield savings accounts pay competitive interest rates and can be a great way to build cash reserves without having to touch your money for extended periods of time. You can open one or more of these accounts online and manage them from a computer or mobile device.
For those who want to earn a higher interest rate on their deposits, the company also offers Certificates of Deposit (CDs). These are FDIC-insured up to $250,000 and come with a fixed term length and minimum deposit amount.
The American Express Rewards Checking account is a great choice for those who have a Membership Rewards-enrolled card and are looking for a checking account that pays a higher interest rate on their balances and is free from monthly fees. In addition, these customers can earn Membership Rewards points for making debit card purchases and convert those points to a deposit in their checking account.
However, this product is only available to existing credit card members. That means you need to have held an Amex credit card for at least three months in order to get this offer.
If you’re an existing American Express credit card holder, you can sign up for this checking account by visiting the website or contacting the bank directly. This checking account doesn’t have any minimum balance requirements or monthly fees, and it’s easy to monitor your funds and withdraw them from participating MoneyPass ATMs.
Limited Mobile App
The American Express app is a great way to manage your American Express credit card accounts, and it also works for checking and savings. The app is easy to navigate and offers a variety of features, including account protection alerts. It’s also easy to freeze or unfreeze cards if you want to avoid using them for purchases, and the app can even help you locate a lost or stolen card.
American Express’s business checking offers a low APY and no monthly fee, which is great for small businesses. It also allows you to earn Membership Rewards points, which can be redeemed for travel and other gifts.
You can use the mobile app to view and manage your accounts online, and you’ll get a monthly statement in the mail. You can also sign up for email reminders to pay your bills on time and schedule automatic payments with your connected bank accounts.
This is a great feature if you have a lot of transactions that need to be paid each month. You can also split your American Express card payments with friends on Venmo or PayPal, without incurring any fees.
The app can be downloaded from the Apple Store or Google Play, and it has a user-friendly interface that makes managing your American Express credit cards a breeze. You can make payments, redeem rewards and even chat with customer service from the app.