Is Amex Checking Account Worth it?

Recently American Express (Amex) launched it’s checking account product called as Amex Checking account. Currently, it’s open to Amex Consumer Credit Card customers only. We may not know if this product will be open to general public in the future. As Amex is a premium brand in credit card industry, their entry in debit products is very interesting. They’ve had checking accounts for it’s small business before but this is their first checking product to its consumer card segment.

Who is Eligible to Apply for Amex Checking Account

Any existing customer holding a consumer credit card for a minimum for 3 months are eligible to apply. Amex says the account can be opened within minutes as the customer’s information is already with Amex and a decision will be made within minutes after applying.

Benefits of Amex Rewards Checking Account

As you know, American express is all digital and no physical branches, their digital support is one of the best in business so you can expect a same level of service with their checking products too. Amex offers a decent perk of 0.50% APY which is 10x higher than the national average. ATM withdrawals can be done at any ATMs with an Amex Logo including unlimited fee-free ATM withdrawals with your Debit Card at 37,000 MoneyPass ATM locations nationwide. Third parties may impose fees for services and transactions on ATMs that are not on the MoneyPass network.

They also offer 1 Membership Rewards point for each $2 of eligible Debit Card purchases. These membership points  Points can be redeemed for deposits into your Amex Rewards Checking account, with no cap on how many points you can earn. There are many other benefits like no minimum balance requirements, no monthly fee, purchase protection and zero fraud liability.

How to Fund Amex Checking Account

Your checking account with AMex can be funded using any of the three options.

• Deposit through one of your existing other bank checking account
• Setting up a direct deposit using Checking account number and routing number
• You can also submit a mobile check deposit

Negatives on Amex Checking account

Some of the negatives on American Express checking account are :

• No Intro Bonus with Amex checking account unlike most other bank checking accounts.
• No Physical Branch location is a disadvantage for many customers who don’t prefer digital methods.
• Open to limited group (Amex Consumer Card customers) and not open to public at the time of this article.

Pros and Cons of American Express Checking Account

In the dynamic realm of personal finance, American Express has established itself as a renowned provider of financial products, including its Amex Checking Account. This account offers a unique blend of rewards, features, and benefits, catering to a diverse range of customers. However, like any financial product, it comes with its own set of advantages and disadvantages.

Advantages of Amex Checking Account

1. Rewards Program: The American Express Checking Account stands out for its straightforward rewards program. Cardholders earn one Membership Rewards® point for every $2 spent on eligible purchases, with no monthly cap or minimum balance requirement. These points can be redeemed for a variety of exciting rewards, including travel, merchandise, gift cards, and even cash back.

2. Competitive Annual Percentage Yield (APY): The Amex Checking Account offers a competitive APY of 1.00%, significantly higher than the national average. This allows cardholders to earn interest on their everyday balances, boosting their overall returns.

3. No Monthly Maintenance Fees or Minimum Deposit Requirements: The American Express Checking Account is refreshingly free of monthly maintenance fees or minimum deposit requirements. This eliminates recurring expenses and provides flexibility for cardholders.

4. Mobile Check Deposit and Online Account Management: The Amex Checking Account offers convenient mobile check deposit and online account management features. Cardholders can easily deposit checks using their mobile devices and manage their accounts anytime, anywhere.

5. ATM Fee Reimbursement: The Amex Checking Account provides ATM fee reimbursement for withdrawals made at non-MoneyPass® ATMs, up to $15 per month. This mitigates the inconvenience of using out-of-network ATMs.

Disadvantages of Amex Checking Account

1. Limited Branch Network: Unlike traditional brick-and-mortar banks, American Express does not have a wide network of physical branches. This may pose a challenge for customers who prefer in-person banking services.

2. Foreign Transaction Fees: The Amex Checking Account charges a 2.75% foreign transaction fee for purchases made outside of the United States. This can be a significant expense for frequent travelers.

3. No Overdraft Protection: The Amex Checking Account does not offer overdraft protection, which means customers are responsible for any overdraft fees incurred. This requires careful account management to avoid overdrafts.

4. Limited Customer Support Hours: Amex Checking Account customer support is available during regular business hours, but may not be as accessible as 24/7 support offered by some banks.

5. No Physical Checkbook: The Amex Checking Account does not provide physical checkbooks by default, though they can be ordered upon request. This may be an inconvenience for those who still rely on checks for certain transactions.

Conclusion: Weighing the Pros and Cons

The Amex Checking Account offers a compelling combination of rewards, features, and benefits, making it an attractive option for those seeking a rewards-earning checking account with no monthly fees or minimum balance requirements.

However, it’s essential to consider the limited branch network, foreign transaction fees, lack of overdraft protection, and limited customer support hours before making a decision. Ultimately, the suitability of the Amex Checking Account depends on individual needs and preferences.

If you are fan of American Express Credit cards, I’m pretty sure their Rewards checking account will be your favorite too. Their customer service is outstanding and their apps are intuitive to use. Amex Benefits are very good and their benefits are one of the best in industry. Except the “No physical branch” concern, it’s a great checking product. Let me know your thoughts about American Express Checking account in comments.