I got in today’s mail my introduction materials for my new American Express One card. I got the actual card last weekend. It’s a brand new card which rebates 1% of all purchases toward an interest-bearing savings account American Express sets up for you (currently at 3.80% APY).
Unlike the Discover card, it isn’t a cash rebate back, but enables a person to save money every time the card is used. Personally, I have been looking for a card of this kind for the past few years. I’m tired of reward programs that only offer merchandise.
To me, a reward program only becomes worthwhile when the points (usually in the 100K + range) can be used toward airfare, vacations, and lodging. People that use their card for business can easily reach this level. Not me. I use the card primarily for personal expenses and usually redeem points at 20K for a cash rebate.
This card is perfect for me because I pay off my balances in full each month. Any unpaid balance is charged interest and can defeat any accumulation of savings. I’ve already used the card to buy gas, groceries and an online purchase. If I want, I can also direct deposit a portion of my paycheck to go into the account.
Annual fee for the One card is waived for the first year, then $35/year. This card isn’t for everyone. On the other hand, if you’d like to apply, go to americanexpress.com .