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American Express Looks Beyond Cards With New Business Savings Offering
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Key Takeaways
American Express launches high-yield Business Savings, bringing checking and cards onto one platform.
The 2.95% APY offering has no minimum balance or monthly maintenance fee, with fee-free transfers.
American Express plans rewards deposits and payroll tools to broaden its business-finance platform.
American Express Company (AXP - Free Report) is expanding its presence by launching a high-yield savings option for business clients.This brings Business Checking and Business Savings under AmEx Business Banking. Customers can manage their banking and Card products in one place. They do not need an AmEx card to apply. The launch also expands the platform with the Graphite Business Cash Unlimited Card rewards deposit feature, expected later this year, and a Gusto-powered payroll solution with AI insights, expected early next year. These additions broaden AmEx’s role in business finances.
The offering provided a 2.95% annual percentage yield as of Sept. 15, with no minimum balance or monthly maintenance fee. Customers can make ACH, wire and check deposits at no additional cost, while same-day ACH transfers will cost $10. Transfers between Business Checking and Business Savings are instant and fee-free, with accounting software integration. According to an AmEx survey, 82% of businesses believe excess cash could be put to better use in savings. The survey covered 1,165 small-business financial decision-makers.
The broader strategy is to bring more business-finance needs onto one platform. 93% of surveyed businesses want banking and financial tools to work together seamlessly, while 81% want better visibility into upcoming payroll payments and 65% prioritize payroll streamlining. Later this year, Graphite cardholders can redeem Reward Dollars into Business Checking at 1:1.
The financial opportunity centers on deposit growth and broader product usage. Business deposits would give American Express an additional funding source, although paying interest on those balances will affect the economics of the offering. The impact will depend on how quickly deposits grow and how effectively those funds are deployed. Adding savings to checking, cards and payroll could deepen customer relationships and improve retention.
AXP’s Stock Price Performance
The stock has declined 3.5% over the past year, outperforming the industry’s 28% decline during the same period.
The Zacks Consensus Estimate for Bread Financial's 2026 earnings is pegged at $12.10 per share. Over the past 60 days, the estimate has seen four upward revisions with no movement in the opposite direction. BFH beat earnings estimates in each of the trailing four quarters, with the average surprise being 147.1%. The consensus estimate for 2026 revenues is pinned at $3.98 billion, indicating 3.6% year-over-year growth.
The Zacks Consensus Estimate for Axos Financial's 2026 earnings is pegged at $9.59 per share. Over the past 60 days, the estimate has seen two upward revisions with no movement in the opposite direction. AX beat earnings estimates in three of the trailing four quarters and missed one, with the average surprise being 6.7%. The consensus estimate for 2026 revenues is pinned at $1.61 billion, indicating 8.7% year-over-year growth.
The Zacks Consensus Estimate for Oportun Financial's 2026 earnings is pegged at $1.57 per share. Over the past 60 days, the estimate has seen one upward revision with no movement in the opposite direction. OPRT beat earnings estimates in each of the trailing four quarters, with the average surprise being 20.3%. The consensus estimate for 2026 revenues is pinned at $944.41 million.
View the Zacks #1 Rank List
Image: Bigstock
American Express Looks Beyond Cards With New Business Savings Offering
Key Takeaways
American Express Company (AXP - Free Report) is expanding its presence by launching a high-yield savings option for business clients.This brings Business Checking and Business Savings under AmEx Business Banking. Customers can manage their banking and Card products in one place. They do not need an AmEx card to apply. The launch also expands the platform with the Graphite Business Cash Unlimited Card rewards deposit feature, expected later this year, and a Gusto-powered payroll solution with AI insights, expected early next year. These additions broaden AmEx’s role in business finances.
The offering provided a 2.95% annual percentage yield as of Sept. 15, with no minimum balance or monthly maintenance fee. Customers can make ACH, wire and check deposits at no additional cost, while same-day ACH transfers will cost $10. Transfers between Business Checking and Business Savings are instant and fee-free, with accounting software integration. According to an AmEx survey, 82% of businesses believe excess cash could be put to better use in savings. The survey covered 1,165 small-business financial decision-makers.
The broader strategy is to bring more business-finance needs onto one platform. 93% of surveyed businesses want banking and financial tools to work together seamlessly, while 81% want better visibility into upcoming payroll payments and 65% prioritize payroll streamlining. Later this year, Graphite cardholders can redeem Reward Dollars into Business Checking at 1:1.
The financial opportunity centers on deposit growth and broader product usage. Business deposits would give American Express an additional funding source, although paying interest on those balances will affect the economics of the offering. The impact will depend on how quickly deposits grow and how effectively those funds are deployed. Adding savings to checking, cards and payroll could deepen customer relationships and improve retention.
AXP’s Stock Price Performance
The stock has declined 3.5% over the past year, outperforming the industry’s 28% decline during the same period.
Image Source: Zacks Investment Research
AXP’s Zacks Rank & Key Picks
AXP currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Finance space may consider some better-ranked stocks like Bread Financial Holdings, Inc. (BFH - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present, and Axos Financial, Inc. (AX - Free Report) and Oportun Financial Corporation (OPRT - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Bread Financial's 2026 earnings is pegged at $12.10 per share. Over the past 60 days, the estimate has seen four upward revisions with no movement in the opposite direction. BFH beat earnings estimates in each of the trailing four quarters, with the average surprise being 147.1%. The consensus estimate for 2026 revenues is pinned at $3.98 billion, indicating 3.6% year-over-year growth.
The Zacks Consensus Estimate for Axos Financial's 2026 earnings is pegged at $9.59 per share. Over the past 60 days, the estimate has seen two upward revisions with no movement in the opposite direction. AX beat earnings estimates in three of the trailing four quarters and missed one, with the average surprise being 6.7%. The consensus estimate for 2026 revenues is pinned at $1.61 billion, indicating 8.7% year-over-year growth.
The Zacks Consensus Estimate for Oportun Financial's 2026 earnings is pegged at $1.57 per share. Over the past 60 days, the estimate has seen one upward revision with no movement in the opposite direction. OPRT beat earnings estimates in each of the trailing four quarters, with the average surprise being 20.3%. The consensus estimate for 2026 revenues is pinned at $944.41 million.