American Express unveils digital checking account
American Express on Tuesday announced the launch of a new digital checking account offering.
Amex Rewards Checking will be available for any non-business card member who is in good standing. It will not require a minimum balance, no fees will be associated with the account, American Express’s general manager for consumer banking, Eva Reda, told CNBC.
The company is also offering rewards that will give customers using the debit card one point for every $2 they spend. It will also give them a 0.50 percent annual yield on balances, the news outlet noted.
“The reason we are putting together this really nice [annual percentage yield] and the rewards is to absolutely maximize the loyalty we can get from those customers,” Reda reportedly said. “The time just feels right based on where customers’ heads are, who’s using the product and how mass this sort of a solution is quickly becoming.”
The firm rolled out Kabbage Checking, which was offered to small-business owners, last year. It has also offered online savings accounts since 2008, CNBC reported.
According to CNBC, American Express is interested in luring Generation Z and millennials with the new account option. The American Express app will be integrated with the Amex Rewards Checking account and perks such as purchase protection and 24/7 customer service.
“There is no question in my mind that some portion of our customer base are going to decide this is their primary account, and others who are going to try it out and start out with this as their second or their third account,” Reda told CNBC.
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