("American Express To Offer Personal Savings Accounts,"
published at 5:49 p.m. EDT on Sept. 14, misstated the percentage
yield for the savings account. A corrected version follows.)
DOW JONES NEWSWIRES
American Express Co. (AXP) will re-enter the market for personal
savings deposit accounts, as the credit-card issuer continues to
diversify its product offerings.
Earlier this year, the company, known for its largely affluent
customer base, launched a direct deposit-taking program as it
targets broader sources of funding. Together with its existing
brokered retail certificate-of-deposit program and brokerage sweep
account program, American Express had $19 billion in retail
deposits outstanding as of June 30.
The company said its savings account would have an annual
percentage yield of 1.85%. It also launched a broader CD program
available in maturities from three months to five years. The
accounts include no monthly fees and no minimum balances.
American Express had offered savings accounts in the past, but
not in recent years, according to a spokeswoman.
The company, which unlike most rivals both issues cards and
processes transactions, has been hurt by cutbacks in spending and
customers who are falling behind on their bills. But the company
has been less dependent on lending than its peers, and it has said
its offerings would need to reflect the customer cutbacks.
The personal savings deposit accounts are being offered by
American Express Bank FSB, which is insured by the Federal Deposit
Insurance Corp.
In July, American Express posted a 48% drop in its
second-quarter profit as the company set aside less money for bad
accounts amid falling customer balances.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com