One from American Express: A Cashback Credit Card Explained
by: Jeff Weber
I have received numerous inquiries regarding One from American Express, a new cashback credit card that deposits 1% cashback into a high yield savings account. Here I’ll discuss the features, benefits, and fine print issues of One from American Express.
Delving into the precise rewards value of this Amex credit card is a little difficult. Whenever you make a purchase, American Express makes a deposit of 1% into a high-yield savings account (currently, the variable interest rate is 3.5%). The amount of interest you can earn will vary dramatically from cardholder to cardholder. Now, because I’m a rewards junkie, I use my credit cards for every purchase and pay my balance in full each month. Why use an ATM card when you can get paid to use your credit card? It doesn’t make sense. Assume you use your One from American Express credit card for all of your everyday purchases. Over the course of a year, most people’s food, gas, and entertainment expenses exceed $10,000 to $15,000, especially those with large families. Thus, if you spend $10,000 with the One from American Express credit card, you’ll receive a $25 bonus deposit for signing up, $100 in savings deposits, plus interest. So far, very good.
Additionally, new card members are charged no annual fee their first year, and are benefited even more by an Interest Protection feature that allows you the opportunity to pay no interest on new purchases, even if you carry a balance.
However, small spenders do face a problem. During the second year of card membership, there is an annual fee of $35. For those who spend $10,000 or more each year on their credit card, this doesn’t pose too much of a problem, as you’ll earn most of that fee, if not more, in interest.
However, if you only spend a few thousand dollars a year, the annual fee will really eat away at your rewards. For those who fit into the small spending category, other cashback credit cards, such as the American Express ® Blue Cash SM , the Citi® Dividend Platinum Select® Card, or the Chase Cash Plus® Rewards Visa may ultimately provide better value.
Overall, One from American Express ® provides great value for large spenders. But, unlike cashback credit cards that charge no annual fee, this credit card may not be the best option for smaller spenders. See http://www.Credit-Card-Depot.com/american-express-credit-card-applications.htm for American Express credit card applications, or http://www.Credit-Card-Depot.com/amex-one.htm to apply online for One from American Express ®.
About The Author:
Jeff Weber is the president and CEO of Credit Card Depot Inc., an online credit card marketing company. For over two years, the company's primary website, www.credit-card-depot.com, has provided consumers with detailed credit card application information as well as articles to help consumers find the best value in credit cards.
Copyright 2006 Credit Card Depot Inc. This article may be reprinted as long as links remain active in reprinting.
custservice@credit-card-depot.com
March 2006
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