The news: American Express’ US consumer cash back card members can redeem their Rewards Dollars as deposits into Amex High Yield Saving Accounts (HYSAs) at a 1:1 redemption rate, per a press release.

Funds deposited into HYSA earn interest at 3.2% APY as of writing.

How we got here: Amex has been deepening its footprint in banking.

• The issuer launched HYSAs for businesses in September; Graphite Business Cash Unlimited cardholders can also link their rewards to these accounts.
• Amex has reached $155 billion in consumer deposits, per Q3 2026 earnings—nearly double the share it held five years ago.

Why this matters: Amex may be able to bank on its reputation as a premium issuer to draw more members to its banking services, especially among younger consumers. Gen Zers and millennials already represent 60% of Amex’s deposits, per Amex’s Q2 2026 earnings. 

Leaning into competitive savings could help Amex secure an even larger share of young people’s deposits. Consumers ages 45 and younger are already most eager for competitive savings products: 46% of Gen Zers and millennials prioritize emergency savings, and 37% focus on their travel funds, per a Bank of America Workplace Benefits study.

Amex may be able to convert that demand into new primary banking relationships. Younger consumers already have one foot out the door: 34.7% of Gen Zers were interested in switching banking providers last year, compared with 20.7% of consumers overall, per our US Banking Consumer Habits survey. 

Recommendations for financial providers: Amex’s strategy may be compelling for its target audience, but traditional providers can lean into inherent strengths to retain customers.

• Leverage branches. Gen Zers aren’t eschewing face-to-face banking relationships. Only 6% of 18- to 24-year-olds have a digital-only account, per our forecast. Traditional banking institutions can draw on their human customer service strength to defend against attrition.
• Deepen ecosystem convenience. Many Amex cardholders already have banking relationships—checking accounts, personal loans, student loans, auto loans—with other financial institutions. More effectively integrating those products may make young consumers reluctant to complicate their financial relationships.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.