As I posted here earlier, Bank of America has launched a new savings program called Keep The Change with their debit cards where all purchases are rounded up with the difference being placed in your savings account. Now American Express Has launched a credit card that puts your cash rebate into a savings account.
The One from American Express is similar to their AmEx Green Card, but you are allowed to carry a balance. You receive a 1% cash back bonus, but instead of getting miles or points, the 1% is deposited into an American Express online bank (currently yielding 3.15%) account at the end of each month for you. They are also offering a $25 sign up bonus which you receive after your first purchase with the card.
While at first glance it may appear to be a decent card, it comes with 2 main problems. First, 1% is not much of a bonus these days with a number of cards offering 5% cash back bonuses for certain purchases. The biggest reason this “savings” credit card fails to impress, however, is that it comes with a $35 annual fee (waived for the first year). That means that you need to spend at least $3,500 just to break even and then you begin to earn your 1% savings.