NEW YORK — American Express is expanding its push into business banking with the launch of a high-yield savings account and plans for additional financial-management tools aimed at small and midsize businesses.
The company said its new Business Savings account offers a 2.95% annual percentage yield, with no minimum balance or monthly maintenance fees. Customers can make and receive transfers online or through the American Express mobile app.
American Express said the APY, which was current as of Sept. 15, is variable and can change before or after an account is opened.
The new savings product is part of a broader effort by American Express to integrate banking and other financial services into its Amex Business membership offerings.
Single Application
Customers can now apply for Business Savings, Business Checking or both through a single application and manage their bank accounts alongside their American Express card products online or through the company’s app.
American Express said combining Business Savings and Business Checking under its American Express Business Banking operation is intended to provide businesses with a more integrated way to manage their finances.
“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,” Eva Reda, executive vice president of global commercial services at American Express, said in announcing the expansion.
“With Amex Business Banking, businesses now have banking tools that make it easy and rewarding to manage their finances, all in one place,” Reda added.
More Products Planned
American Express said the expansion will continue with additional products and capabilities.
Later this year, the company plans to introduce a feature allowing members with its Graphite Business Cash Unlimited Card to redeem Reward Dollars for deposits directly into their Business Checking accounts.
American Express also plans to launch a payroll service powered by Gusto early next year. The payroll offering is expected to include artificial intelligence-powered insights, according to the company.
The moves come as American Express reports continued growth in its commercial business.
The company said in July that commercial billed business increased 5% during the second quarter, with spending by U.S. small and midsize businesses and large and global corporations each growing at the same rate.
T&E Spending Increases
Travel and entertainment spending among commercial customers increased 8%, American Express reported.
The company also began piloting a new expense-management platform with middle-market customers during the quarter.
American Express said the expanded banking offerings are part of its strategy to provide businesses with financial products that extend beyond its traditional commercial card operations and bring banking, payments and financial-management tools together within a single platform.
