american express debuts

American Express Debuts New All Digital Checking Account

February 25, 2022

American Express has made the announcement of launching the first-ever online consumer Amex checking account for consumers that are eligible card members of the United States. According to American Express, Amex Rewards Checking will be offering a wide range of benefits – including membership reward points for purchases related to eligible debit cards. 

Some additional benefits are APY (Annual Percentage Yield) rate that tends to be ten times higher in comparison to the national rate, along with Purchase Protection for all eligible purchases. The offering is available without any minimums or monthly maintenance fees. 

American Express All-Digital Checking Account

The launch by American Express is expected to fulfill the ever-rising demands for digital banking services amongst customers. With the all-new checking account, consumers will earn interest and receive rewards while making use of the connected debit card when making purchases. 

The American Express Checking account is also available with monitoring and fraud protection, and customer service is accessed through chat or the phone. The all-new checking account serves to be an addition to the existing customer deposit products of the company, including the HYSA or American Express Savings Account and the CDs or Certificate of Deposits. 

Some of the innovative features of the American Express Rewards Checking account are:

  • 0/5 percent higher yield APY on the total checking account balance – almost ten times higher than the national rate
  • Absence of any minimum balance fees or monthly maintenance fees
  • Capability of earning one membership reward for every spending of $2 on purchases related to eligible debit cards. These rewards can be redeemed into the Amex Rewards Checking Account.
  • Purchase Protection on purchases made out of eligible American Express Debit Card for ensuring cover for theft or accidental damage
  • Efficient and simple banking with the help of the award-winning app of American Express
  • ATM withdrawals without any fee with the help of the debit card at over 37,000 MoneyPass ATM branches across the nation

Why is Digital Banking Great for any Business?

Digital banking has been successful in revolutionizing conventional banking practices by bringing forth automation, improved customer engagement, better business cash flow, and flexibility in transactions. 

The concept of digital banking has also enabled customers to ensure transactions across multiple secured and reliable digital channels and helps in bringing ample convenience and accessibility to funds around the clock. The paperless banking system also provides customers access to a number of payment options. Customers are given the opportunity to make use of the respective mobile devices with the help of a banking app, utilize credit card features, make use of online banking, or utilize mobile payments. 

Importance of Digital Banking 

Digital banking, the automation of conventional banking services, is the ultimate solution to maximum customer engagement, improved profitability, and better control. It has redefined banking by substituting the physical presence of a bank with dedicated online presence. It helps in doing away with the need to visit a branch. 

Digital banking allows customers to ensure transactions through multiple secure digital channels, but the bank is responsible for taking care of data security, risk mitigation, and regulatory aspects. It is done by integrating mobile and online banking services with the help of the latest digital technologies including social media, analytics, tech-driven payment solutions, and mobile technology for exceeding customer expectations, experience, and convenience. 

Some of the additional benefits of digital banking are:

  • Round-the-clock availability of access to relevant banking functions
  • The overall convenience of banking from the comfort of your home
  • Paperless banking
  • Facilitation of online payments for online shopping and so more
  • Enabling setting up of automatic payments for regular utility bills
  • Extending banking services to remote areas
  • Strengthening privacy and security for customers
  • Reducing the risks of counterfeit currency with the help of digital fund transfers
  • Lowering the minting demands of physical currency
  • Restricting the circulation of black money
  • Allowing misplaced credit cards to be blocked and reported instantly 

According to American Express, around 81 percent of Gen Z and millennials make use of debit cards as a substitute for cash. J. D. Power also found in another study that 41 percent of retail bankers have considered going digital. Liz Berman – Vice President of the American Express debit and product management department – revealed that around 85 percent of cardholders using American Express have already started engaging digitally with the organization. 

Through the release of the all-new checking account, American Express looks forward to drawing in more digital customers, with emphasis on Millennials and Gen Z. The company will aim at enticing them through the offering of special rewards with the help of the debit card. 

Berman added that the overall volume of engagement of consumers digitally and the overall growth of digital banking due to the pandemic  contributed to the decision of releasing the checking account. He added that the members of American Express and its team look forward to more digital products as well as services for customers. The members of the company want more out of the checking account and do not want to give up the benefits that are important to them.

Should You Open the American Express Rewards Checking Account?

Only consumers that have access to the credit card of American Express are eligible towards applying for the Amex Rewards Checking Account. As such, it can be worthwhile if you already have access to the credit card, but it is also expected that you make use of the debit card regularly while maximizing your rewards. 

If your ultimate goal is earning quite a number of points related to Membership Rewards with all your spending, the Checking Account can be worthwhile for the debit card rewards alone.

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