i read their two-page ad today in time magazine. mother and son are pictured playing miniature golf. she poses the dilemma:
i want him to learn the importance of saving. he wants whatever he sees on television. any ideas?
there’s one from american express. every time you make a purchase, we’ll make a deposit to a high-yield savings acount with your name on it. so teaching the importance of saving is as easy as giving in once in a while.
laughably, amex’s “high yield” account will earn the child only 3.5%. that is about equal to the U.S. rate of inflation for the last half of 2005 [source]
Every time you make a purchase with the American Express OneÂ® Card, American Express will contribute funds directly into an FDIC-Insured High-Yield Savings Account that’s automatically opened in your name. This High-Yield Savings Account will earn interest at a competitive Annual Percentage Yield (APY), currently 3.50% (Variable rate effective as of 10/17/05)1. The Card features the Savings Accelerator plan, which contributes a full 1% of your purchases directly into your FDIC-insured High-Yield Savings Account2 at American Express Bank, FSB.
There is no limit to how much you can earn and the money is yours to save and use however you’d like. Find out how effortlessly your savings can grow. [source]
this is a great lesson for a child. “billy, if you’ll just spend, spend, spend, then you can get 1% of your money back and put it in an account that barely keeps pace with inflation. of course, all the while american express is using 99% of your money to make real investments.”
if you think this card will help teach your kids the importance of saving, then i’ve got a retirement program to sell you.