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American Express New Savings Accelerator

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Looks like the idea of helping people save by linking credit/debit cards to a savings account is growing. First, EmigrantDirect told its customers about its upcoming credit card in which a percentage of purchases will be deposited into customer's savings account. Last Wednesday, Bank of America introduced its Keep The Change program.

Now American Express has introduced its Savings Accelerator Plan. One percent of purchases with the American Express One credit card are deposited into the customer's American Express High-Yields Savings Account.

Currently, American Express High-Yield Savings Account is paying 3.15%. There are no minimum balance requirement. It's not nearly as good as EmigrantDirect, but it's a lot better than Bank of America's 0.5% savings rate.

The credit card has a feature called Interest Protection which may be good for those who keep balances. Most credit cards eliminate the grace period for new purchases when you're carrying a balance. With the American Express One Card, you never pay interest on new purchases, even if you are carrying a balance.

The card does have an annual fee of $35 which is waived for the first year.

For an extra incentive, American Express is offering a $25 signup bonus which will be deposited into the High-Yield Savings Account approximately 8-12 weeks after the first purchase transaction.

More discussion about these new bank card reward programs can be found in this USA Today article.
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