American Express has enabled US Cash Back Card Members to redeem Reward Dollars as deposits into its savings and business checking accounts.
Under the new option, US Consumer Cash Back Card Members can redeem Reward Dollars for deposits into an American Express High Yield Savings Account (HYSA). Holders of the Graphite Business Cash Unlimited Card can direct their rewards into an American Express Business Checking account. In both cases, redemptions are processed at a 1:1 rate, with no minimum redemption amount. The deposit accounts are offered by American Express National Bank, a Member FDIC institution.
Bringing card rewards and deposits closer together
The update connects two parts of the US-based company’s business that have traditionally operated separately: card rewards and deposit products. Corey Timlin, Senior Vice President of Consumer Banking at American Express, said that most of the company’s deposits come from existing Card Members. In Timlin’s view, this allows the firm to bring its card and banking offerings closer together. Allowing customers to turn rewards into savings or everyday banking funds, Timlin added, is intended to create a more connected relationship with the company.
For consumer cardholders, funds deposited into the HYSA earn the account’s annual percentage yield (APY). Interest is compounded daily and credited monthly. American Express notes that both the interest rate and the APY may change at any time, before and after an account is opened.
The company cites the Blue Cash Preferred Card as an example. That card offers 6% cash back at US supermarkets on up to USD 6,000 in purchases per year, as well as on select US streaming subscriptions. Rewards earned in these categories can now be moved into an interest-bearing savings account instead of being used only for spending-related redemptions.
Redemption process and timeline
The feature is currently available through American Express online accounts, and redemption through the Amex App is set to follow. To redeem, Card Members select their eligible Cash Back Card and open the Reward Dollars section. They then choose the deposit option, which is the HYSA for consumer cardholders and Business Checking for business cardholders, enter the amount, and confirm the transaction. Interest accrues once the funds reach the account.
Existing redemption methods remain in place for both consumer and business Card Members. These include statement credits and eligible purchases at Amazon.com checkout.
American Express plans to extend the functionality in 2027. Consumer Card Members who also hold a HYSA will then be able to set up automatic redemption of Reward Dollars into their savings account.
Part of a wider banking push
The business side of the update builds on an announcement made earlier this year. At that time, the company introduced American Express Business Banking, which included a new high-yield Business Savings Account. That offering was designed to help businesses earn interest on their deposits and manage more of their finances in one place. The new rewards-to-checking option for Graphite Business Cash Unlimited Card Members links that banking proposition directly to the company’s card portfolio.
