American Express is offering a relatively new (well, a few months old) credit card called One. As you spend, 1% of each purchase is automatically deposited into a savings account that’s currently earning 3.5% APY. It’s not a horrible interest rate, beating that of most traditional banks, but barely in the mix compared to interest rates from online banks.
I’ve seen some write-ups about American Express One on a few blogs (Momma and the Boys, Fiat Lux (not happy), A Single Guy, Blueprint, and some others.
Not “One” person mentioned the especially heinous $35 annual fee (waived for the first year) hidden discreetly in the small print of the application. Most people would be better off with a rewards card like the CitiBank Dividend Platinum Select. That’s my card of choice, offering 5% back at grocery stores, gas stations, and drug stores and 1% back on everything else.
It goes without saying that the only way to take advantage of credit cards offering rebates is to pay the balance off in full every month.
Subscribe
12:12 am (reply)
I don’t know anything about the AE One card but I believer in the Citibank Dividend Platinum Select MasterCard and its Citibank Dividend Dollars program. I was able to get the $300 maximum last year.
http://neos-nest-egg.blogspot.com/2005/12/citibank-dividend-dollars-program.html
Neo
7:52 am (reply)
I use a combo of Amex Blue (up to 1.5% back on EVERYTHING after certain levels of spending) and my Subaru MC (which gives 3% back on everything good in Subaru bucks). Just got my 30,000 mile tune up for a bit above half price because of the savings on the latter card.