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Here's what we know so far, including eligible cards and whether it's worth considering.
American Express Adds Savings Account Redemptions
Eligible American Express cardholders can now redeem Reward Dollars for HYSA deposits. You can redeem Reward Dollars at a 1:1 redemption rate, which means 1 Reward Dollar equals a $1 deposit in your account. Effective immediately, you can redeem
Currently, an American Express HYSA offers a variable APY of 3.2%, which is compounded daily and credited monthly. This APY is subject to change, but it gives you a good idea of what you can earn. Although not the highest on the market, it's still six times the national average.
Which cards are eligible?
This new redemption method is available to anyone with an American Express High Yield Savings Account and one of the following cash back cards:
- Blue Cash Everyday® Card from American Express
- Blue Cash Preferred® Card from American Express
- Morgan Stanley Blue Cash Preferred® Card
- Blue Cash Card® (closed to new applications)
- Cash Magnet® Card (closed to new applications)
This is just another way to use your Reward Dollars. You can keep redeeming your dollars for statement credits or eligible purchases at checkout on Amazon. For now, you'll need to start the process manually, but in 2027, American Express plans to introduce automatic deposits to make saving even easier.
$0Rates & Fees
(Terms apply)
- 3% cash back at U.S. supermarkets (on up to $6,000 per year in eligible purchases, then 1%)
- 3% cash back at U.S. gas stations (on up to $6,000 per year in eligible purchases, then 1%)
- 3% cash back with U.S. online retailers (on up to $6,000 per year in eligible purchases, then 1%)
- 1% back on other eligible purchases
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
$0 intro annual fee for the first year, then $95Rates & Fees
(Terms apply)
- 6% Cash Back on select U.S. streaming subscriptions
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%)
- 3% Cash Back on eligible transit purchases including taxis/rideshare, parking, tolls, trains, buses and more
- 3% Cash Back on eligible purchases at U.S. gas stations
- 1% Cash Back on other eligible purchases
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
In addition, American Express is launching an opportunity to redeem your Reward Dollars earned on select business cards to an American Express Business Checking account. This is available on the following cards:
- Graphite™ Business Cash Unlimited Card
- The Classic Blue Cash® for Business Credit Card
- Platinum Business Premium Cash Rebate Card
- Business Cash Rebate® Credit Card
Should You Redeem Reward Dollars for HYSA Deposits?
Redeeming Reward Dollars for savings account deposits is a great way to invest your earnings from everyday spending. While we advocate earning transferable rewards points redeemable for book premium cabin flights, many people prefer cash back for its simplicity.
This new redemption method most impacts the Blue Cash Everyday and Blue Cash Preferred.
If you are a cardholder of the no-annual-fee Blue Cash Everyday (Rates & Fees), you'll earn 3% cash back at U.S. supermarkets, 3% cash back on U.S. online retail purchases, 3% cash back at U.S. gas stations, on eligible purchases for each category (up to $6,000 per year, then 1%), and 1% cash back on other eligible purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
Let's say you max out each bonus category each year. You could earn a total of $180 cash back from U.S. supermarkets, $180 from U.S. gas stations, and $180 from U.S. online retailers, or $540 in cash back each year. If you redeem your cash back as a deposit into a HYSA with a 3.2% APY, you could earn almost $1,000 in interest over the next 10 years without making any contributions beyond your Reward Dollars.
It's certainly not enough to retire on, but having $6,364 in a savings account ($5,400 from your deposits and $964 from interest) from purchases you were already making is great. These estimates are based on SoFi's savings account calculator because American Express doesn't offer a similar calculator, so your actual savings may vary.
Related: Blue Cash Everyday vs Blue Cash Preferred — Which Is Right for You?
Bottom Line
American Express has officially launched HYSA redemptions for select cardholders. This is a pretty neat development, and it's a creative way to get more value from cash back that otherwise offers a fixed return. While we're still fans of cards that earn transferable points, more ways to redeem rewards — and boost your savings account — are always a great thing.
For rates and fees of the cards mentioned in this post, please visit the following links: Blue Cash Everyday® Card from American Express (Rates & Fees), and Blue Cash Preferred® Card from American Express (Rates & Fees)
