Update 1/23/23 – With the all of the newly-minted Business Platinum cards out there (and the fresh round of targeted offers that just went out), it’s worth remembering that the Charles Schwab Amex Platinum and Morgan Stanley Platinum aren’t the only way to cash out Membership Rewards. Also, the sign-up bonus is back up to 30,000 MR.
Last year, American Express launched a checking account product for small businesses. At the time, Amex promised that it would be possible for account holders to cash out Membership Rewards points(MR) through their checking accounts at some point in the future. While the ability to cash out MR via a free checking account sounded great, most of us assumed that the conversion rate would be terrible.
Well, we were half right. American Express has announced that Amex Business Checking account holders can now cash out Membership Rewards at a rate of 0.8 cents per point…fairly paltry. However, account holders that also have a Business Platinum card will be able to redeem up to 1,000,000 points per year at 1 cent each, just .1 cents below the rate offered to cardholders of the Schwab Platinum card.
At the same time, Amex revealed a 30,000 MR welcome offer (changed from $300) for opening a new Business Checking account, maintaining a $5,000 balance for 60 days and completing 10 transactions on the account. The checking account also earns 1.30% APY (on up to $500K in balance), 0.5 MR on debit transactions and has fee-free ATM access at any MoneyPass location in the US.
The Deal
- Earn 30,000 Membership Rewards points when you open a new American Express Business Checking account, deposit $5,000, maintain that balance for sixty days and complete 10 qualifying transactions (see below) within sixty days.
- Business Checking account holders are now eligible to cash out Membership Rewards at a rate of 0.8 cent per point (unlimited points per year). Account holders that also have a Business Platinum card can cash out Membership Rewards at a rate of 1 cent per point (maximum of 1,000,000 points annually).
Terms and Conditions
To be eligible to earn a Welcome Offer of 30,000 Membership Rewards points, you must meet each of the following qualifying criteria:
- Open a new American Express Business Checking account
- Deposit a total of $5,000 or more in “new money” into your account within twenty (20) days of account opening (the new money must also post to your account and appear in your Available Balance within twenty (20) days of account opening). “New money” is defined as deposits that are not deposited from any other American Express® Business Checking account and are not deposited using our Redeem Membership Rewards points for Deposits feature;
- Maintain an average balance in your account of at least $5,000 for sixty (60) days, starting on the date that your deposits of new money are equal to $5,000 or greater;
- Complete 10 qualifying transactions within sixty (60) days of account opening. “Qualifying transactions” are defined as mobile deposits, and electronic/online transactions, including ACH, Wire, and Bill Payments made to or from your account. Business Debit Card transactions and deposits using our Redeem Membership Rewards points for Deposits feature are not qualifying transactions. Transfers between American Express® Business Checking accounts held by the same business are not qualifying transactions.
- After you have completed all the above qualifying criteria, American Express will credit the Membership Rewards points to the Membership Rewards Program Account linked to your American Express® Business Checking account within 8-12 weeks.
Quick Thoughts
Before now, the only way to cash out Membership Rewards was by holding an Amex Charles Schwab Platinum card or the Morgan Stanley Platinum card. The Schwab Platinum allows you to cash out MR at a rate of 1.1 cents per point into a Schwab investment account and the funds can then be transferred into your normal checking account. This option to cash out is part of the reason why Nick chose the Schwab Platinum as his third pick in last week’s “3 Cards, 3 Continents” draft. The Morgan Stanley card only offers 1 cent per point, which has made the Schwab Platinum the most common option for those wishing to convert points to cash.
Now, the free American Express Business Checking account lets you redeem points for cash as well. There is a bit of a catch, though. In order to get the improved rate of 1 cent per point, you must also hold a Business Platinum card (and the $695 annual fee that comes with it). Also, that improved rate is limited to a maximum of 1,000,000 points per year while the standard rate of 0.8 cents per point is unlimited.
While both Nick and I have both used the Schwab Platinum to convert the rewards from the Amex Points Parade into cash at 1.1 cpp, I can’t imagine a situation where I would do it at 0.8 cpp (the standard rate for business checking account holders). 1 cent per point could potentially be more interesting, but it requires a Platinum card as well, this time the Business Platinum.
So, either way, in order to get a passable rate of return, it’s necessary to have a Platinum card with at least one year of a $695 annual fee.
That said, this could be a useful option to keep in mind for folks who already have the Business Platinum (especially for those who got in on the 170K or 250K targeted offers) as it gives the same ability to cash out points without adding another card or affecting your 5/24 status. It also offers a useful fallback in case those of us with the Schwab card eventually decide that the coupon book of credits and extra 10% sweetener aren’t worth the annual fee any longer.
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How soon after receiving the 60k bonus can I transfer my money back out of the Amex Biz checking account to the account I used to fund it with? I don’t like keeping track of money in different banks, and don’t want to forget about the $5k sitting in this account.
If I transfer all $5k back, will AMEX claw back my 60k MR points? What will happen to the account if the balance is $0?
I’m looking for a DP for this as well. Have you heard any news?
I did just after completing the requirements. No issue so far and I’ve received the bonus.
Does the checking have to be linked to the Business Platinum account? It shows only .8 when I go to page to cash out points to checking account.
Yes, the 1cpp rate is only good for folks that also hold a Business Platinum
Thanks. I must have to reach out and connect them. Since it doesn’t show the Plat rate.
There is a risk for doing this. I just got hit with a FR and asked to submit a 4506-C form after submitting.
If I wouldve known, I would not have risked it.
Was this a new business? How was it structured? And what rev #s did you put down?
Sole prop. Used social.
Good datapoint to have that FR is possible. I applied with sole prop, EIN, and social. I also have existing business cards with Amex.
can i open one as a sole prop and a 2nd one under EIN?
I just got approved for the checking account. I only have Amex Marriott Bonvoy CC. Is that true that in order to transfer points to airlines partners I need an Amex CC that can transfer? Thanks
I second this question ??
I applied for my feline rescue business and was denied (though I have an Amex Business Cash Credit Card for the same business). The rejection stated this as the reason, “We are not currently offering accounts to companies within your industry.”
The industry I selected was Agriculture and Veterinary.
I’ve made 12 card purchases as of over a week ago and my progress tracker still hasn’t registered. Do they wait until tbe end of the statement cycle?
Can anybody comment on the 10 transactions?
Can I just transfer myself (from another bank) 10 dollars 10 times to qualify?
Yes. Since there’s a requirement to deposit $5K, you can also do 10 $500 deposits to fulfil both requirements.
Can you make the 10 deposits all in a day, all from one external account? Or, do you need to spread them out?
Yes I’m sure you can. I made 2 to 3 every day until reaching 10 but I’m sure that 10 in one day would work too
Greg, did you receive the bonus through this method?
Just following up on Rachel’s comment, I was curious too 🙂
Yes
A chat agent confirmed a separate business entity with unique tax ID (EIN, TIN, SSC) would be eligible for the bonus even with my existing open Business Checking account which received a previous bonus.
I opened up their Kabbage account about 8 months ago for the bonus. Is this the same thing and thus I’d probably be denied for this?
Got it. 60k!!! Ten minutes. Easy
How soon can you close the account without getting the points clawed back?
There’s no fee to use the account, so you can just leave it alone and let it close naturally.
Piece of cake. I started the app a month or so ago. Baled out. So started the app again and Amex addressed me and stated do I wanted to finish? Sure. American Express is so far ahead of the rest including Chase. Love’em! No docs, no nothing just approved.
That be want not wanted
Bailed
Not straw – Thanks
On the application under industry I was surprised to find brothel.I was temped.
I pcked another business but was denied. I opened a few checking accounts recently and suspect that was the reason for denial.
What do you put for a business if you just do ms?
My business is called ms 🙂
It is requiring me to download “business filing documents” even though I’m applying as a sole proprietor. Anyone else figured out what to do?
I’m a sole proprietor and uploaded pdf of my driver’s license and was approved
Nice!
I took Johnny’s advice and uploaded my driver’s license as well. I then got a weird “need more info” and a number to call. I decided to wait a few days, but they called me. They had me verify my identity by taking pics of my license and a selfie. Then BOOM! Approved.