American Express has introduced a digital business checking account for SMEs in the US as part of its efforts to expand offerings for small businesses.

The new business checking account will offer annual percentage yield (APY) of 1.1% on balances up to $500,000.

The customers will also receive a Business Debit Card and connect existing American Express Credit Cards with the account.

American Express Global Commercial Services executive vice-president Dean Henry said: “We built the new American Express Business Checking from the ground up because businesses told us they want more from their existing checking account.

“It’s a customer first, full-service digital business checking account that makes cash management easy, processes a range of payment types and earns high-yield interest on balances up to $500,000.”

The business checking account is designed to enable quick onboarding.

Once the SMEs are approved to open accounts, they will be entitled to a range of benefits including a $300 deposit as a welcome bonus.

There are no minimum balance requirement or maintenance fees on the account.

The account will support several payment options including debit card, bill pay, ACH, wire transfers and cheque payments.

Additionally, the customers will have access to 37,000 fee-free ATMs for cash withdrawals and balance inquiries.

Customers can manage the account through a full-feature, one-stop iOS app. They can also earn Membership Rewards points and redeem them for deposits from next year.

American Express plans to add additional functionalities to be service in 2022.

Earlier this year, American Express partnered with Tink to improve the onboarding process for new card members.