American Express launches high-yield business savings

American Express has launched a high-yield business savings account as part of a broader Business Banking offering that combines its business checking and savings services.

The new American Express Business Savings account offers a 2.95% annual percentage yield, with no minimum balance requirement and no monthly maintenance fee. Customers can apply for checking, savings or both through a single application, and manage those accounts alongside American Express card products online or in the company's app.

The launch adds another banking product to American Express's push to deepen relationships with small business customers beyond cards and payments. It also puts the group in more direct competition for business deposits, as traditional banks and financial technology firms try to attract operating cash from smaller companies.

Businesses using the savings account can make and receive transfers online or in the app, including ACH transfers, wire transfers and cheque deposits at no extra cost. Same-day ACH is available for a USD $10 fee, while transfers between American Express business checking and savings accounts are free and instant.

The account also connects with accounting software and bank linkages, allowing customers to move money and update financial records within the same tools. Support will be available around the clock.

American Express tied the launch to survey findings showing that many businesses believe they are not using spare cash enough. In polling of 1,165 small business financial decision-makers, 82% said their excess cash could be put to better use in a savings account.

Eva Reda, Executive Vice President of Global Commercial Services at American Express, said the company aims to combine banking services with its card products.

"Businesses are looking for more value from their banking services, including competitive returns and simple tools that help them automate processes and fit seamlessly into how they operate," said Reda. "With Amex Business Banking, businesses now have banking tools that make it easy and rewarding to manage their finances, all in one place."

Broader push

The savings launch is part of a wider expansion of American Express's business banking offering. Business checking and business savings now sit together under the American Express Business Banking brand, giving customers a single point of access for deposit accounts and card-related services.

That strategy reflects a broader trend in business finance, with providers trying to reduce the number of separate systems smaller companies use for payments, banking, accounting and payroll. For American Express, the goal is to capture more of the daily financial activity of business customers who may already use its cards.

The company is also linking its newer card products more closely to banking accounts. Holders of the Graphite Business Cash Unlimited Card will be able to redeem Reward Dollars directly into an American Express business checking account at a 1:1 rate.

That gives card rewards another route back into a customer's operating account, rather than limiting them to statement credits or purchases at Amazon checkout. American Express launched the Graphite business card earlier this year with unlimited 2% cash back on eligible purchases, earned in the form of Reward Dollars.

Payroll plan

Another part of the banking expansion is a payroll tool within the business checking account, using technology from Gusto. The service will allow customers to enrol, manage and run payroll from within the checking product.

It will also include an AI-based tool designed to provide payroll insights. American Express linked that step to demand from small businesses for better visibility over upcoming wage payments and simpler payroll administration.

In the same survey, 81% of respondents said they wanted better visibility into upcoming payroll payments, while 65% said streamlining payroll processes was a priority for their business over the next 12 months.

Customers will pay a monthly fee for the payroll service. Small business card members will be eligible for a monthly credit into their business checking account after completing qualifying activities.

The broader proposition is aimed at businesses that want to keep deposits, spending, transfers and back-office administration with one provider. Survey data cited by American Express found that 93% of businesses want their banking and financial tools to work together seamlessly.

For American Express, the savings account offers a new way to attract idle business cash while reinforcing business checking as a central account for transactions, rewards and payroll flows.