I signed up for an Amex Rewards checking account to earn points on debit card purchases — but it wasn't worth it (2024)

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

• I signed up for an American Express checking account, which offered rewards for debit card purchases.
• However, the account lacked many crucial features like bill pay and a robust ATM network.
• I canceled the account and opened a checking account with Capital One, which has been far better.

About a year ago, I signed up for an American Express checking account. It seemed promising. The account had no fees, no minimum deposit, and the ability to earn 1 point for every $2 in debit card purchases. As a travel rewards fanatic, it was a no-brainer for me because I like to maximize my rewards on every dollar spent. It also included a $250 welcome bonus after qualifying transactions.

I ended up opening an account, with the hopes that I'd earn valuable Membership Rewards on the odd debit card purchase and put the welcome bonus to good use. However, these perks were largely overshadowed by a series of shortcomings. I canceled my American Express Rewards checking account just a year after opening.

1. I couldn't pay my bills with it at the time

At the time, the American Express Rewards checking account lacked even the most basic reward functions, including bill pay and outgoing wire transfers. Not being able to pay bills — including my Americxan Express credit card balance — from my Amex Rewards checking account was a massive drawback. It reduced the account's function to just debit card purchases.

Since I mostly use rewards credit cards for purchases, it didn't make sense to keep this account just for the occasional debit card purchase alone. Bill pay is a basic function offered by nearly every bank. It came as a shock to me that it wasn't available with an Amex checking account and defeated a large purpose of opening this account.

American Express has revised its policies and now allows checking account holders to pay off credit card balances from their accounts. However, not having that feature at the time was a dealbreaker.

2. It was hard to deposit and transfer money

American Express makes it incredibly difficult to fund the Amex Rewards checking account. Since there are no bank branches, you can't make cash deposits — even through the partner Money Pass ATM network. The only way to deposit a check is through mobile deposit or by mailing a physical check to American Express. ACH deposits are possible, but they take several days to clear.

Unlike some of its competitors, Amex doesn't support Zelle, which is a convenient way to send money quickly between accounts. With limited options for depositing funds into my Amex Rewards checking account, it didn't make much sense for me to keep it open, especially when there were more convenient options available that didn't impose fees and offered similar benefits.

3. The APY wasn't competitive

Because of its limited functionality, I ended up using my Amex Rewards checking account as a sort of savings account. I couldn't access or make deposits easily, so the funds went largely unused. The account was earning about 1% APY, which was competitive for a checking account, but not compared to high-yield savings accounts. It ultimately didn't make sense to keep money I couldn't access in an account earning so little.

4. I didn't have access to in-person banking

Online banks are pretty common nowadays and can still work well for many consumers. However, combined with the other drawbacks (namely, the lack of bill pay and fast deposit options), the Amex Rewards checking account's online-only features ended up being yet another thorn in my side.

Competing credit card issuer Capital One has a similar free checking account, with the added bonus of in-branch banking. Ultimately, it made more sense to switch my banking over to Capital One for more extensive banking options and the flexibility of branch access.

I closed the account and opted for a Capital Onechecking and savings account. It offered all the basic banking functions I wanted, along with a competitive APY. Capital One's checking account has no fees or minimums, plus a vast ATM network double the size American Express offers. And since Capital One has local branches I can visit, banking becomes much easier.

Correction: April 5, 2024 — A previous version of this article did not address changes to the balance pay features of the American Express Rewards checking account. American Express credit card balances can be paid with the account.