Spending now saves, thanks to Amex’s new trick
A credit card company finds a new way to make saving feel like a reward.
The story
American Express allows certain cardholders to redeem Reward Dollars as deposits into a high-yield savings account, offering a new way to save money earned through spending.
Source: thepointsguy.com
Our reading
American Express has turned the act of saving into a reward for spending, as if the mere idea of putting money in a bank is now a luxury. The company is essentially saying, ‘You spent, now let us help you save it—because we know you’ll just spend it again otherwise.’
The logic is that if you’ve already earned the cash back, why not let it work for you in a way that’s more structured than just a statement credit? It’s like being given a leash and told you can now walk your dog in the park, but only if you promise not to let it off the leash.
And if you’re not careful, you might end up with a high-yield savings account that’s more about the convenience of the system than the actual return on your money.
