It's an excellent question to ask when considering where to stash your hard-earned money! For years, American Express has been synonymous with credit cards, travel, and premium perks. But with the introduction of their checking account, they've ventured into a new territory. So, how good is the American Express Rewards Checking account? Let's dive deep and explore everything you need to know.
The American Express Rewards Checking Account: A Detailed Review
American Express National Bank, Member FDIC, offers a unique online checking account known as the American Express® Rewards Checking. It's designed to appeal to existing Amex credit cardholders and new customers alike who are looking for a blend of traditional banking features with the added benefit of Membership Rewards points.
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| How Good Is American Express Checking Account |
Step 1: Are You Even Eligible? (Engage User Here!)
Before we go any further, let's address the elephant in the room: are you eligible for an American Express Rewards Checking account? This is crucial because, historically, Amex has primarily targeted its existing credit card customers for this product. While they are expanding access, it's a good idea to check their official website for the most up-to-date eligibility requirements. Are you an existing Amex credit card holder? If so, you're likely in a strong position! If not, don't worry, they are making it more broadly available, but it's still worth checking the specific criteria.
Step 2: Unpacking the Perks – What Makes It Stand Out?
The American Express Rewards Checking account isn't just another checking account; it comes with several distinctive features that set it apart.
2.1. Earn Membership Rewards Points on Debit Card Purchases
This is arguably the biggest differentiator. Unlike most traditional checking accounts, which offer little to no rewards, American Express Rewards Checking allows you to earn Membership Rewards points on eligible debit card purchases. This is a game-changer for those who prefer using a debit card for everyday spending but still want to be rewarded for their transactions.
2.2. Competitive Annual Percentage Yield (APY)
The account offers a competitive APY on your balance. While interest rates are variable and can change, Amex aims to provide a return that often surpasses what you'd find at many brick-and-mortar banks. This means your money isn't just sitting idle; it's actively growing.
2.3. No Monthly Fees and No Minimum Balance Requirements
This is a significant win for consumers. Many checking accounts come with monthly maintenance fees that can chip away at your balance, or require you to maintain a high minimum balance to waive those fees. The American Express Rewards Checking account boasts no monthly fees and no minimum balance requirements, making it accessible and cost-effective.
2.4. Access to a Large Fee-Free ATM Network
As an online-only bank, access to cash is often a concern. American Express addresses this by providing access to a vast network of over 70,000 fee-free ATMs for cash withdrawals. This widespread availability helps alleviate concerns about being able to access your funds when needed.
2.5. 24/7 Customer Service
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American Express is renowned for its customer service, and this extends to their banking products. They offer 24/7 customer support by phone, which can be invaluable for resolving issues or getting assistance at any time.
Step 3: The Trade-offs – Where It Might Fall Short
No financial product is perfect for everyone, and the American Express Rewards Checking account has its limitations.
3.1. No Physical Branches
This is the most obvious drawback. If you prefer in-person banking, depositing cash frequently, or having a local branch to visit for complex transactions, an online-only bank like American Express National Bank might not be the right fit. Cash deposits, in particular, can be a challenge.
3.2. Limited Product Selection
Compared to traditional full-service banks, American Express National Bank has a more limited range of banking products. They primarily focus on checking, savings, and CDs, and do not offer services like mortgages, auto loans, or money market accounts.
3.3. Potential Eligibility Requirements (Historically Tied to Credit Cards)
As mentioned in Step 1, while American Express is making the checking account more widely available, historically, it was often tied to having an existing Amex credit card. If you're new to American Express, you might find that initial access is still geared towards establishing a relationship with them first.
3.4. Overdraft Policy
American Express Rewards Checking typically does not offer overdraft protection. Instead, if a transaction would overdraw your account, it will likely be declined. While this means no overdraft fees, it also means you need to be diligent in managing your balance to avoid declined transactions.
Step 4: The Application Process – A Step-by-Step Guide
If you've weighed the pros and cons and decided the American Express Rewards Checking account is a good fit for you, here's a general step-by-step guide on how to apply:
4.1. Visit the Official American Express Website
Navigate to the American Express National Bank section of their website. Look for information specifically on their "Rewards Checking" account. Ensure you are on the legitimate American Express site to avoid scams.
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4.2. Check Eligibility Requirements
Before starting the application, re-confirm the latest eligibility criteria. This might include residency, age, and sometimes a pre-existing relationship with American Express.
4.3. Initiate the Application
Click on the "Apply Now" or "Open Account" button. You'll typically be guided through an online application form.
4.4. Provide Personal Information
Be prepared to provide standard personal details, including: * Full Name * Date of Birth * Social Security Number (SSN) or Taxpayer Identification Number (TIN) * Residential Address * Contact Information (Phone Number, Email Address)
4.5. Verify Your Identity
American Express, like all financial institutions, is required to verify your identity. This may involve: * Answering security questions based on your credit history. * Uploading copies of identification documents (e.g., driver's license, passport). * Potentially a "soft" credit pull, which won't impact your credit score.
4.6. Review and Agree to Terms and Conditions
Carefully read the account agreement, terms and conditions, and fee schedule. Understand the interest rate, how rewards are earned, and any other policies.
4.7. Fund Your Account
Once your application is approved, you'll need to fund your new checking account. American Express typically offers several ways to do this, including: * Linking an existing bank account for electronic transfers (ACH). * Setting up direct deposit from your employer. * Depositing a check via the mobile app (mobile check deposit). * Mailing a check to their designated address. * Remember, cash deposits are generally not accepted directly.
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4.8. Set Up Online Banking and Mobile App
After funding, set up your online banking portal and download the American Express mobile app. These will be your primary tools for managing your account, checking balances, transferring funds, and utilizing other features.
Step 5: Maximizing Your American Express Rewards Checking Experience
Once your account is open, here are some tips to get the most out of it:
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5.1. Utilize the Debit Card for Eligible Purchases
To maximize your Membership Rewards points, use your American Express debit card for everyday spending where points are earned. Keep an eye on any categories or merchants that may be excluded from point earning.
5.2. Monitor Your Account Regularly
As an online-only account with no overdraft protection, regular monitoring of your balance and transactions through the online portal or mobile app is essential to prevent declined purchases.
5.3. Integrate with Your Other Amex Products
If you have American Express credit cards, you'll find the integrated experience on the Amex app and website quite convenient, allowing you to manage all your Amex accounts in one place.
5.4. Familiarize Yourself with Membership Rewards Redemption
Understand how to redeem your earned Membership Rewards points. They can be used for travel, statement credits, gift cards, or shopping. The value of points can vary depending on how you redeem them.
6. Final Verdict: Is It Good?
So, how good is the American Express Rewards Checking account?
For a certain segment of consumers, it's exceptionally good.
It's an excellent choice for:
Existing American Express credit card holders who appreciate the Amex brand, customer service, and the ability to earn Membership Rewards points on debit card spending.
Individuals who primarily bank online and rarely need physical branch access or cash deposit capabilities.
Those seeking a checking account with no monthly fees and a competitive interest rate.
People who are disciplined with their spending and won't be negatively impacted by the lack of overdraft protection.
It might not be the best fit for:
Individuals who frequently handle cash deposits.
Those who prefer in-person banking services.
Anyone who relies heavily on overdraft protection.
Customers looking for a wider array of banking products beyond basic checking, savings, and CDs.
Ultimately, the American Express Rewards Checking account carved out a niche for itself by blending rewards with traditional banking, making it a compelling option for the digitally savvy, Amex-loyal consumer.
10 Related FAQ Questions
How to earn Membership Rewards points with the American Express Rewards Checking account?
You earn Membership Rewards points on eligible debit card purchases. The specific earning rate can be found in your account terms and conditions but is typically 1 point per $2 spent.
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How to avoid fees with the American Express Rewards Checking account?
The American Express Rewards Checking account is designed with no monthly maintenance fees and no minimum balance requirements, so there are typically no fees to avoid for basic account usage. However, third-party ATM fees (outside the MoneyPass network) or international transaction fees may apply.
How to deposit cash into an American Express Rewards Checking account?
American Express National Bank is an online-only bank and does not accept direct cash deposits. You would need to deposit cash into another bank account first and then transfer the funds to your Amex checking account via ACH or mobile check deposit.
How to find fee-free ATMs for American Express Rewards Checking?
You can find fee-free ATMs within the MoneyPass network. American Express provides a locator tool on their website or within their mobile app to help you find nearby eligible ATMs.
How to contact American Express customer service for checking accounts?
American Express offers 24/7 customer service for their banking products. You can typically find their phone number on their official website under the "Contact Us" or "Support" sections for American Express National Bank.
How to set up direct deposit for my American Express Rewards Checking account?
You will need your American Express Rewards Checking account number and the bank's routing number. Provide these details to your employer's payroll department to set up direct deposit.
How to use the American Express mobile app for my checking account?
The Amex mobile app allows you to view your balance, monitor transactions, make transfers, deposit checks via mobile capture, and manage alerts for your checking account, often alongside your Amex credit card accounts.
How to transfer money from my American Express Rewards Checking account?
You can transfer funds electronically (ACH transfers) to linked external bank accounts, send money via services like Send & Split (if available), or use your debit card for purchases and cash withdrawals.
How to close an American Express Rewards Checking account?
To close your account, you typically need to contact American Express customer service directly by phone. They will guide you through the process, which usually involves ensuring your balance is zero and confirming your request.
How to check the current interest rate (APY) on the American Express Rewards Checking account?
The APY for the American Express Rewards Checking account is variable. You can typically find the most current APY listed on the American Express National Bank website or by logging into your online banking account.
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