American Express Checking Account: Rewards & Interest - No Monthly Fees

Amex has a new checking account that earns rewards and interest and has no monthly maintenance fees.

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You've probably heard of American Express and are familiar with the company's many credit card offerings. But the brand also has other financial products available. In fact, American Express National Bank recently introduced an online checking account that earns rewards and interest. Here's what you need to know:

The popularity of online banking continues to rise, and American Express National Bank is expanding its offerings to meet the needs of consumers. American Express National Bank launched a new checking account in February 2022.

American Express conducted a December 2021 survey to understand consumer spending habits better. The brand found that consumers like to use debit to make some purchases, and 81% of Generation Z and millennial consumers surveyed said they use their debit card as a substitute for cash.

With American Express National Bank's new checking account, consumers of all ages can use debit and earn rewards and interest on their spending.

Introducing American Express® Rewards Checking

The American Express® Rewards Checking account is an all-digital banking solution available to eligible U.S. consumer card members. The checking account earns rewards and interest.

Here are the most notable features of this digital bank account:

• Earn interest at a highAPY
• Includes a debit card with contactless capabilities
• Earn 1 Membership Rewards® point per $2 spent on eligible debit card purchases
• No monthly maintenance fees
• No minimum balance requirements
• Purchase protection on eligible debit card purchases covering accidental damage or theft
• Fraud protection and monitoring
• Fee-free ATM withdrawals at 37,000 MoneyPass® ATM locations throughout the U.S.

Since this bank account is digital, account owners can easily manage their accounts and deposit checks through the American Express App®.

How do rewards work? Membership Rewards® points earned using your debit card can be deposited into an Amex Rewards checking account. If you have a Membership Rewards® account in connection with an Amex credit card, you can also redeem your points in other ways.

If you use a debit card to make some of your purchases, you may want to choose a bank account that earns rewards, like the one mentioned above. Always look into account terms and fees before opening any new bank account.

Could this checking account replace your credit card?

Probably not. While this new account has attractive features like the ability to earn interest, fee-free ATM withdrawals at participating ATM locations, and no monthly maintenance fees, this checking account shouldn't be the only personal finance tool you use.

In addition to having a checking account, you should continue to use credit cards responsibly. You can likely earn more rewards by using a rewards credit card for everyday purchases.

The American Express® Rewards Checking only earns 1 point for every $2 spent with your debit card. That's not the best rewards rate. Many rewards credit cards promise a higher rewards rate, including the best American Express credit cards.

Online banking can add convenience to your life. If you're ready to switch to an online banking solution, review our list of best online bank accounts.