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.
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