American Express does not offer a traditional checking account
American Express does not have a checking account product. The company is primarily a credit card and payment services provider, not a bank that offers deposit accounts like checking or savings. If you hold an American Express card, you cannot use it to write checks or set up direct deposit the way you would with a checking account from a traditional bank.
American Express does offer some account features through partnerships and subsidiary products, but these are not checking accounts in the conventional sense. The closest product they offer is the American Express Serve card, which is a prepaid card that functions somewhat like a checking account but operates differently from a true bank checking account.
Key Takeaways
- American Express is not a bank and does not offer checking accounts, savings accounts, or other deposit products.
- American Express Serve is a prepaid card that can receive direct deposits and send money, but it is not a checking account and does not come with FDIC protection.
- If you need a checking account, you will need to open one with a bank or credit union, separate from any American Express credit card you hold.
- American Express credit cards can be used to pay bills and make purchases, but they are not checking accounts and require you to pay the balance in full or carry interest charges.
What American Express Serve offers instead
American Express Serve is a prepaid card product that some people use as a checking account alternative. With Serve, you can load money onto the card, receive direct deposits, send money to other people, and make purchases or withdraw cash at ATMs. It functions like a checking account in some ways, but it is legally a prepaid card, not a deposit account.
Serve does not come with FDIC insurance, which means your money is not protected by federal deposit insurance the way it would be in a bank checking account. The card does charge fees for certain transactions, such as ATM withdrawals outside the American Express network or expedited transfers. You should review the current fee schedule on the American Express website before deciding whether Serve meets your needs.
How American Express credit cards differ from checking accounts
An American Express credit card is a borrowing tool, not a place to store money. When you use an American Express card to make a purchase, you are borrowing money from American Express, and you must pay back what you owe. A checking account, by contrast, is a place where your own money sits, and you can spend it directly without borrowing.
American Express credit cards do not offer check-writing, direct deposit, or the other features that make a checking account useful for everyday banking. You cannot set up automatic bill payments from an American Express card the way you can from a checking account. If you want those features, you need a separate checking account at a bank or credit union.
Where to open a checking account if you need one
If you need a checking account, you can open one at any bank or credit union. Many banks offer checking accounts with no monthly fee, though some charge a fee if you do not maintain a minimum balance. Credit unions often offer checking accounts to their members at low or no cost.
You can also open a checking account online with banks that operate only on the internet, such as Ally, Charles Schwab, or Discover. These banks typically offer no monthly fees and pay interest on checking balances, though the interest rate is usually very low. Online banks may take one to three business days to process transfers to and from other banks.
Why American Express does not offer checking accounts
American Express operates as a payment processor and credit card issuer, not as a deposit-taking bank. To offer checking accounts, a company must be chartered as a bank and meet strict regulatory requirements set by the Federal Reserve and the Office of the Comptroller of the Currency. American Express has chosen not to pursue this charter, so it does not accept deposits or offer checking accounts.
This business model allows American Express to focus on credit cards, charge cards, and payment services rather than managing the complex operations of a retail bank. Some financial technology companies have partnered with banks to offer checking accounts under their brand, but American Express has not pursued this strategy for a checking product.
Using American Express with your checking account
You can link your American Express credit card to your checking account at most banks. This allows you to pay your American Express bill directly from your checking account using online bill pay or automatic payments. You can also use your American Express card to withdraw cash at ATMs, though most American Express cards charge a fee for cash advances.
Some people use their American Express card for purchases and rewards, then pay the bill from their checking account each month. This approach lets you earn rewards on your spending while keeping your money in a bank account that offers FDIC protection and check-writing ability.
Frequently Asked Questions
Can I get a debit card from American Express?
American Express Serve is a prepaid card that functions like a debit card, but it is not a traditional debit card linked to a checking account. You load money onto the Serve card, and then you can spend it. It does not come with FDIC protection like a bank checking account would.
Does American Express have any banking products at all?
American Express offers credit cards, charge cards, and the Serve prepaid card. It does not offer checking accounts, savings accounts, money market accounts, or certificates of deposit. For those products, you need to open an account with a bank or credit union.
Can I write checks with an American Express card?
No. American Express credit cards do not come with checkbooks, and you cannot write checks against your card balance. If you need to write checks, you must open a checking account at a bank or credit union.
What happens if I need to deposit a check?
You cannot deposit a check into an American Express card or account. If you receive a check, you must deposit it into a checking account at a bank or credit union. Many banks allow you to deposit checks using a mobile app, which takes one to two business days to process.
Is American Express Serve safe for storing money?
American Express Serve is a legitimate prepaid card, but it does not have FDIC insurance. Money in a bank checking account is insured up to $250,000 per account holder per bank. If security and insurance are important to you, a bank checking account is a safer choice than a prepaid card.