Reddit user cowsareverywhere got a pop up in their login about an upcoming American Express business savings account product, slated to launch with a 2.10% APY rate. That’s the same rate American Express currently offers in their personal savings account. It’s competitive, though not the best rate out there.
Main thing interesting here is that people often ask for high-yield business accounts. In fact, we added a section to our High-Yield Savings Account post with business options. Unfortunately, there are only a few options available, currently, so this is a welcome move if/when it happens. It’s also very much in line with American Express’s focus on business customers.
I just got the banner and it now says 1.25% APY
William Charles
This is incredibly appealing to landlords who need to separate tenant deposits from personal accounts.
Anyone know if Amex has promotions on using their iOS app for new customers, I’ve seen other banks do it but I can’t recall ever seeing Amex
Let’s hope it comes with a sign up bonus, too. 🙂
Why do banks offer less interest for business deposits other than “because they can?” Genuinely curious if there’s other reasons.
Business funds are not as long term as personal savingsso not as useful for a low cost capital base which is based on long term low yielding savings accounts which are used to lend out at a higher rate.
Business checking accounts and credit cards are stickier and are sought after as its difficult to unwind that sort of relationship with so many recurring activity that would need to be modified in the event of switching.
If this materializes I will be all over it.
Nice alternative to Chase biz. Their $500.38 return on $16,500 was good incentive initially, but I’m looking at long-term. Chase denied my biz card for 5/24, but Amex didn’t. Amex wins!
This is interesting. The Cap One account doesn’t seem to be taking new customers and I have no idea how you sign up for the ML one.
Looking forward to this.
What would be the benefit if business and personal have same rates? Why create/choose business?
For those with businesses with liquid capital sitting and earning nothing.