Have you heard about the new American Express Rewards Checking account and are
wondering what it was to offer? Well in this video, we’re going to be taking a
closer look at the debit card and whether or not it’s worth opening an account.
Hey everyone this is Kyle from Money@30 and on this channel we look at personal finance
from a Millennial perspective, including banking tool reviews like this one.
While American Express may be mostly known for its high-end credit cards like the Platinum,
the company recently introduced a new debit card option. With Amex Rewards Checking,
customers can enjoy a number of banking perks alongside other benefits such as Purchase
Protection. all without monthly fees or minimum deposit requirements. So what else does Reward
Checking have to offer? Let’s take a look at a few things to know about the new account,
including how it stacks up against some of the hype surrounding it.
The first things to know about the American Express Rewards Checking
account are that the Amex debit card does earn Membership Rewards points,
and you can then redeem those points for deposits into your account
Easily the biggest headline of the Amex debit card is that it earns Membership Rewards points.
Specifically, cardholders can earn 1 MR point per every $2 spent with the card.
Considering that most MR-earning cards have a base of 1 point per dollar spent,
this might not sound like a great deal, but it’s still unique for a debit card.
Also notable is that, unlike with Amex credit cards in which customers won’t typically see
earned points applied to their accounts until after they’ve paid off their statement balance,
I’ve noticed that points from my debit purchases have applied as soon as the transaction posts.
For those who already earn Membership Rewards points with a credit card,
any point earned with Rewards Checking will be lumped into the same account and
can be redeemed in any way they see fit. Additionally, customers will now have the
option to redeem their points for deposits into their Rewards checking account. By the way,
cardholders who don’t currently have a Membership Rewards-earning credit card
and open a Reward Checking account will only be able to redeem their points for deposits.
In either case, points are assessed at a value for 0.8¢ each when used for these deposits,
meaning that cashing in 10,000 MRs would yield an $80 deposit. This option is available for any
MR points you earn as Amex doesn’t differentiate whether points were earned by your credit or debit
card. There also doesn’t seem to be a minimum number of points redeemable as I was able to
cash out a single point as a test - although this could obviously change in the future.
Next, to add funds to your account,
you can either connect an external bank account or use mobile check deposit in the app
When it comes to moving money to your accounts, you have a couple of options.
First, if you already have banking accounts linked to your Amex account for payments,
you’ll have the chance to simply add them to your checking account as well. Alternatively,
you can select your current bank and log in to your account in order to link it.
Currently, you can link up to four external accounts at a time.
Meanwhile, if you want to deposit a check, that option is available using the Amex app.
Seeing as many FinTech apps these days have started cutting mobile check deposit from
their lists of features, it’s kind of nice to see Amex incorporating it from the jump.
In addition to those checking features,
the account also earns interest much like a savings account
Despite being a checking account, Amex does offer a fairly respectable APY.
At the time of this recording, Amex is offering 0.5% APY on Rewards Checking
funds. While this isn’t outstanding, it is 10 times the national average
and happens to match what Amex pay on its high yield savings account. So,
considering that most checking accounts don’t even pay any interest, I think this is a qualified win.
If you want to pull cash out of your account,
you’ll be able to access thousands of fee-free ATMs with your Amex debit card.
Like many other digital bank accounts without physical branches, Amex partners with an ATM to
provide customers with fee-free options. In this case, Amex Rewards Checkings users can withdraw
cash at MoneyPass ATM network machines. While it’s a bit smaller than the Allpoint network,
I personally prefer MoneyPass’s locations. To find one of these more than 37,000 machines,
customers can use the Located ATM feature within the Amex app.
Finally, at the time that I’m recording this video in February 2022, Amex Rewards Checking
is only available to current consumer card members - but that could hopefully change in the furuer.
In order to apply for a Rewards Checking account, you must currently be an Amex Card Member with a
consumer - AKA non business — cards. Furthermore, it states that customers will need to have had
their card account for at least three months to be eligible. When you do an account, your debit
card will be added to your list of available accounts on AmericanExpress.com or the app.
As for non Amex cardholders, although the company hasn’t specified plans to expand its
Rewards Checking offering, they do seem to imply that it could happen down the road. On that note,
some of Amex’s other products such as their aforementioned high interest
savings account are open to all, so it seems likely that this would
eventually roll out further as well - but we’ll just need to wait and see.
Overall, there are a few reasons why I think the Amex Rewards Checking account
makes sense for card members but Unfortunately,
the account doesn't yet unlock all of the possibilities that some wished it would
As digital banking accounts go, Amex Rewards is fairly solid with a decent APY,
some purchase protection, ATM access, and some other benefits.
Of course, the fact that you only earn one Membership Reward point per $2 spent
and that the don’t even cash out a full cent is disappointing. On the other hand,
considering that cardholders typically only get 0.6¢ per point for statement credits, this 0.8¢
option could be a nice improvement if you don’t want to bother opening a Charles Schwab Platinum.
Currently, however, the Amex debit card doesn’t live up to its full potential
because it’s not always recognized as a debit card. BEcause of this, the dream of
reduced fees or acceptance where credit cards aren’t hasn’t been fully realized. For example,
while Amazon notes that my Amex is a debit card, my apartment's rent portal still assessing it
with a $36=something dollar fee instead of the debit card rate of just $6.95. Although Amex
says it will continue to work with merchants to ensure the debit card is processed correctly,
I wouldn’t hold my breath waiting for some new point-earning possibilities to open.
But, if you’re looking for a digital banking account anyway or want a quick and easy cash out
option for your MR point, then I think it’s worth opening a free Reward Checking account — although
you also might want to wait to see if Amex offers any sign up bonuses in the future.
Hopefully this gives you a better idea about what the American Express Rewards
Checking account is all about, but for more on the offering,
I’ll have a link to my full written review in the description box down below.
Also, if you liked this video, please hit the thumb up button,
leave a comment, and be sure to subscribe because we have new videos every week.
So thanks again for watching and I'll see you next time here on Money@30