CORRECT (9/14): AmEx To Offer Personal Savings Accounts

("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; [e-mail]