American Express, renowned for its credit card services, also offers a competitive business checking account tailored to meet the needs of small businesses. In 2024, this account stands out with its lucrative welcome bonus, interest rates, and fee structure.
Here's a comprehensive review of what the American Express Business Checking account offers.
Key Features of American Express Business Checking
Welcome Bonus
The American Express Business Checking account starts strong with an appealing welcome bonus:
- Eligibility: Deposit $5,000 or more within the first 30 days and maintain that balance for 60 days while completing five or more qualifying transactions.
- Reward: 30,000 American Express Membership Rewards points, which equate to approximately $600 in value (based on The Points Guy's valuation of 2 cents per point).
This welcome bonus offers a substantial return simply for using the account as your primary business banking solution.
No Monthly Maintenance Fees
Unlike many competitors, such as BFA’s Business Advantage Fundamentals account which charges a $16 monthly fee under certain conditions, the American Express Business Checking account boasts no monthly maintenance fees. This feature significantly reduces the cost of managing your business finances.
Interest Earnings
- Rate: Earn a 1.3% APY on your checking account balance, up to $5 million.
- Comparison: While not as high as the 2% APY offered by some niche banks like BlueVine, the advantage here is that there are no specific conditions (like minimum transaction requirements) to start earning interest.
If you want to learn more about the Bluevine Business Checking Account, check out our detailed review right here.
Other Financial Transactions and Fees
- Domestic ACH Payments: Unlimited domestic ACH payments are included, with a charge of $10 for same-day ACH payments.
- ATM Access: Withdraw cash without fees at any Allpoint and MoneyPass ATMs nationwide.
- Foreign Transaction Fees: A fee of 2.7% applies to transactions not in US dollars, which is something to consider for businesses dealing internationally.
Integration and Rewards
- QuickBooks Compatibility: Easily integrate your checking account with QuickBooks for streamlined bookkeeping and accounting.
- Debit Card Rewards: Earn 0.5 points for every dollar spent using your debit card, a rare feature for business debit cards, which typically don't offer rewards.
Comparing with Other Business Checking Accounts
When compared to other top small business checking accounts, American Express stands out primarily due to its rewards program and the absence of monthly fees. However, for businesses that transact heavily in foreign currencies or require more robust international banking features, other options might be more suitable.
Conclusion
The American Express Business Checking account is a solid choice for small businesses in 2024, especially for those who value straightforward banking with rewards. With its competitive APY, lack of monthly fees, and lucrative welcome bonus, it is well-suited for businesses looking to maximize their financial efficiency.
For businesses considering this checking account, the benefits clearly outweigh the minimal fees, making it a potentially excellent choice for handling daily transactions and savings.
If you want to learn more about the best first business credit card or examine other options, check out the articles below:
- Best 1st Business Credit Card 2024
- Bluevine Business Checking Account Review 2024
- American Express Business Gold Review 2024
- American Express Blue Business Plus Review 2024
- Bank of America Business Banking Review 2024
Frequently Asked Questions (FAQs)
What is the welcome bonus offered by the American Express Business Checking account?
The American Express Business Checking account offers a welcome bonus of 30,000 Membership Rewards points, which is equivalent to approximately $600. To qualify, you need to deposit $5,000 within the first 30 days, maintain that balance for 60 days, and complete five or more qualifying transactions.
Does the American Express Business Checking account have monthly maintenance fees?
No, the American Express Business Checking account does not have any monthly maintenance fees, making it a cost-effective option compared to accounts that charge such fees under certain conditions.
What interest rate does the American Express Business Checking account offer?
The account offers a 1.3% APY on balances up to $5 million. While this rate is competitive, it is slightly lower than the 2% APY offered by niche banks like Bluevine, which may have specific conditions for earning interest.
Are there any fees for using ATMs with the American Express Business Checking account?
You can withdraw cash without fees at any Allpoint and MoneyPass ATMs nationwide. However, a foreign transaction fee of 2.7% applies to transactions not in US dollars.
Does the American Express Business Checking account offer rewards on debit card purchases?
es, the account offers 0.5 points for every dollar spent using the debit card, a rare feature for business debit cards that typically do not offer rewards.