Amex launches loyalty savings credit card
American Express has launched a new loyalty rewards credit card with a difference: the 'One from American Express' card allows consumers to divert their spend-based rewards into a high-yield savings account.
The high-yield savings account used is the Savings Accelerator (also provided by American Express), through which American Express contributes 1% of purchases using the card to the FDIC-insured savings account. When a new credit card account is opened, a corresponding savings account is automatically opened in the cardmember's name at American Express Bank. The account can then be accessed and maintained online.
Extra savings In addition to the spend-based 1% contribution, cardholders can also opt to contribute extra funds to their account directly from their cheque, savings or investment accounts at any time. There is no upper limit on the amount each cardholder can earn in rebates, and there are no monthly fees or minimum balance requirements for the savings account.
Interest protection Another benefit of the card is an interest protection feature which guarantees that cardholders will not have to pay interest on new purchases, even when they carry a credit balance. According to American Express, this feature was designed for consumers who like discipline and control of paying bills in full while also realising that there will be some that occasionally need to paid over time.
Welcome bonus All new cardholders receive a US$25 bonus contribution to their savings account when they make their first purchase using the card. The card itself carries a US$35 annual fee, although this is waived for the first year.
"One from American Express is a card for consumers who are focused not only on spending for today but also on building savings for their future," said Peggy Maher, senior vice president and general manager of consumer charge cards for American Express.