Amex Launches Checking Account for U.S. Small Businesses
American Express has launched its first-ever checking account as the credit card issuer looks to attract more U.S. small businesses customers. The new checking product offers an impressive annual percentage yield of 1.1%.
The new offerings come after American Express acquired fintech company Kabbage last year, which focuses on small businesses loans.
The new product, called Kabbage Checking, is a no-fee digital account that pays 1.1% interest on up to $100,000 in balances. It includes mobile check deposits, a debit card, bill pay and targeted savings features, and access to a network of ATMs and retail locations for cash transactions. Even though Amex is a bank holding company, this new checking account is backed by Green Dot.
American Express has also begun offering Kabbage Funding to millions of existing customers with plans to make it more broadly available later this year.
Kabbage Funding offers small businesses the opportunity to apply for flexible lines of credit between $1,000 and $150,000. American Express already offers a wide range of business credit cards that can earn you cashback, Membership Rewards points, airline miles or hotel points.
Brex has been one notable name recently in this field, providing credit to start-ups a checking and debit card combo that has proved popular so far.
Kabbage Checking
Small business owners can apply online for a Kabbage Checking account in minutes, regardless of their business’s age or revenue. Signing up is fast and there are no minimum balance requirements. Once onboarded, customers can access the following features:
- Free in-network ATMs: Withdraw funds at over 19,000 ATMs.
- Mobile check deposits: Deposit eligible checks using the Kabbage app.
- Kabbage debit card: Access ATMs, deposit cash and add to digital wallets.
- Reserves: Organize your money for specific savings goals or categories.
- Bill pay: Set up recurring payments to vendors.
- Customized checks: Pay vendors, cover payroll and more.
- In-person cash deposits: Deposit funds at 90,000 participating retailers nationwide that may have extended operating hours versus many bank branches.
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