American Express Introduces a Credit Card that Encourages Consumers to Save

By Lydia Verret, CardRatings.com Reporter

American Express recently announced the launch of the new One Card from American Express, which contributes money to a savings account with each purchase made on the Card. The savings account is set up in the cardmember’s name at American Express Bank FSB. As strange as it sounds, American Express One cardmembers can actually save while they spend.

Cardmembers earn a rebate of 1% on new purchases made with the card. This 1% rebate is put into an FDIC high yield account (currently at 3.50% APY). In addition, American Express One will make a bonus contribution of $25 to the savings account for new cardmembers. Cardmembers can also contribute extra money to their savings account directly from their checking, savings or brokerage accounts whenever they wish. The American Express One card has no annual fee for the first year ($35 annual fee thereafter); no minimum balance is required; there is no cap on how much money cardmembers can earn; and accounts can be accessed online at the cardmember's convenience.

According to Peggy Maher, senior vice president and general manager of the Consumer Charge Card division of American Express:

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“One from American Express is a new card for consumers who are focused not only on spending for today but also building savings for their future. Though consumers often want to - and need to - save, the U.S. savings rate recently hit zero percent. With One from American Express, cardmembers can automatically save for their future even as they spend on day-to-day expenses. If you think about all the expenses a typical family has today, it’s easy to see how quickly a little savings can add up just by using this card.”

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Benefits of the American Express One card include:

Interest Protection Feature - Guarantees cardmembers won’t pay interest on new purchases even when a balance is carried on their account. This benefit was designed for cardmembers who usually pay their balance in full but also want the option of paying over time when necessary.

Flexible Features - This gives cardmembers the luxury of no pre-set spending limit as well as the option of carrying a balance on their account, if they choose to do so.

Online Management Tools - Cardmembers have the ability to view their credit card account balance as well as their American Express savings account balance online at their convenience. They can see which purchases are protected from interest charges, their current APY, recent contributions to their savings account, track account activity as well as view their monthly statement. Online management also allows cardmembers the ability to link their accounts and to transfer funds between them. They can use the Spend Tracking Alert feature to determine a monthly spending amount and set up email or text-messaging reminders to notify them when the amount has been reached.

Maher went on to say:

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“One from American Express is the perfect Card for people who may need to revolve larger expenses, like a vacation or home improvement project, but want to pay off last week’s groceries without incurring finance charges. Through the benefits and features of the card we are offering a lot all in one, making it a smart choice for consumers.”

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Desiree Fish, Vice President of Public Affairs at American Express, added:

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"The bottom line is that people are spending on cards and they want to be rewarded for their spending. Given that figures tell us that people are not saving, the One Card from American Express is a great way to kick-start their savings. They get the reward of savings without having to change their behavior at all, and then if they want to start adding their own money to the pot so the savings will grow even faster, they can do so without fees."

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Other benefits of the Card include:

• Extended Manufacturer Warranty - Available on covered items purchased with the Card for up to a year past the manufacturer’s warranty.


• Purchase Protection - Provides up to $1,000 coverage if an item purchased with an American Express Card is stolen, accidentally damaged or vandalized within 90 days of purchase.


• Return Protection - Guarantees American Express will refund up to $300 per item if a merchant won’t take back a covered item purchased with an American Express Card.


• Car Rental Loss and Damage Insurance


• Travel Accident Insurance


• Global Assistance Hotline - Provides 24-hour financial, medical and lodging assistance to cardmembers in need who are more than 100 miles from home.


• Emergency Card Replacement

We welcome your comments about credit card issues in our popular credit forum!

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