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I've got "One" (Sunday, November 27, 2005)

So what does this title mean? What is this "One" that I have? It's the newest offering from American Express, intuitively called American Express One. And, as the title implies, I got one.

This new card is billed as the way for someone to both spend and save. Every time you make a purchase using the card, American Express will deposit 1% of that purchase amount into an FDIC insured high-yield savings account (which is opened in your name when you are approved for the card). The APY right now is 3.5%, which brings it on par with ING Direct. Now, this account is at American Express Bank, so it works out for them as well (the more money in their coffers, the more they can lend out). By the way, you can add to (and remove from) this account at will.

The card also has no pre-set spending limit, and you have the option of paying in full or paying over time. It also has an "interest protection" feature, which means you pay interest on only those charges that you don't pay in full. So in other words, you would be paying interest on that latest vacation you took, but you won't pay interest on the groceries you charged last week. And it has a full 30 day grace period. The interest rate, however, isn't the greatest in the world, but it's certainly not the worst.

So that's about it for now. I'll post a review once I get the card. Oh yea, I almost forgot, American Express will deposit $25 into your savings account the first time you use it. And the $35 annual fee is waived the first year. More to come.

- Aaron

posted by Aaron and Sarah at 11:39 PM   
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