American Express Lets Card Rewards Be Deposited Into Bank Accounts

American Express has rolled out new redemption options for U.S. consumer and business cardholders, allowing rewards to be deposited into eligible American Express bank accounts, the company said in a press release.

For consumers, U.S. Consumer Cash Back Card members can redeem Reward Dollars for a deposit into an American Express High Yield Savings Account at a 1:1 rate.

For businesses, U.S. Business Cash Back Card members can redeem Reward Dollars for a deposit into an American Express Business Checking account at a 1:1 rate.

The company said the new choices are meant to give cardholders more flexibility in how they use rewards and to create a more connected experience across its card and banking products.

“Card members want their rewards to be useful, flexible and easy to put toward the things that matter most to them,” Corey Timlin, senior vice president of consumer banking at American Express, said in the release. “With the majority of our deposits coming from existing Card Members, we have a unique opportunity to bring Cards and banking closer together. By making it possible for Card Members to turn the rewards they earn into savings and everyday banking, we’re creating a more connected experience that helps them get even more value from their relationship with American Express.”

The PYMNTS Intelligence report “How Consumers Decide Which Credit Card to Pay With” found that rewards, offers and benefits are a major factor in deciding which card to use for a purchase.

“More than 1 in 4 shoppers toggle between those cards when paying,” the report said. “The fickleness leaves open ground for issuers to drive increased usage by making a particular card’s benefits as appealing as possible.”

In other recent developments, American Express has partnered with Airbnb to give eligible cardholders more lodging choices and additional ways to earn points, added new spend management tools to its corporate card program and launched a high-yield Business Savings account as part of its broader effort to add integrated financial services to Amex Business membership.