Kabbage checking offering 1.1% on deposits.

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EnjoyIt
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Kabbage checking offering 1.1% on deposits.

Post by EnjoyIt »

I just got an email from American Express about their kabbage business checking account that is offering 1.1% interest on deposits. I wonder if this means other online banks will start offering better rates.

https://www.kabbage.com/business-checking-pricing/
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hi_there
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Joined: Sat Aug 29, 2020 7:00 pm

Re: Kabbage checking offering 1.1% on deposits.

Post by hi_there »

Without any knowledge of the business model for this service, I would guess that American Express is making more than 1.1% times typical cash deposits from business customers that it hopes to attract with this and other offers. So, I don't know if this can be replicated by any odd online checking account that someone else might choose.
Topic Author
EnjoyIt
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Re: Kabbage checking offering 1.1% on deposits.

Post by EnjoyIt »

hi_there wrote: Wed Jun 09, 2021 7:50 pm Without any knowledge of the business model for this service, I would guess that American Express is making more than 1.1% times typical cash deposits from business customers that it hopes to attract with this and other offers. So, I don't know if this can be replicated by any odd online checking account that someone else might choose.
Thats a good point, but 1.1% is more than twice what everyone else is paying. Maybe some will find holding cash a little more palatable at that rate.

I'm still hoping others will start competing with increasing rates as well.
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mediahound
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Joined: Fri Mar 02, 2007 5:43 pm

Kabbage Business Checking 1.10% seems like a no brainer

Post by mediahound »

[This thread has been merged into an existing thread on the topic- Moderator Misenplace]

Kabbage, now owned by American Express, has a business checking account currently paying 1.1% on up to $100k.

https://www.kabbage.com/checking/

Seems like a no brainer if you qualify. You can apply through your AMEX login to make the application process easier.

It's FDIC insured and sourced by Green Dot Bank.

This rate has been in place since 5/1/2021 and may just be a teaser rate. If it goes down, you can always just transfer out of it as there are no minimums and no fees, but they may keep the interest rate above other high-yield savings accounts.

Note - a business can be your side business like selling on eBay, etc.

Kabbage is essentially just like Affirm, but for small business owners.
stinkycat
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Re: Kabbage checking offering 1.1% on deposits.

Post by stinkycat »

You have to have a Kabbage account in order to get the checking account. The Kabbage account provides lines of credit and payment services. I wonder if the cost of those offsets the higher interest rate?
Topic Author
EnjoyIt
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Re: Kabbage checking offering 1.1% on deposits.

Post by EnjoyIt »

stinkycat wrote: Thu Jun 10, 2021 1:25 pm You have to have a Kabbage account in order to get the checking account. The Kabbage account provides lines of credit and payment services. I wonder if the cost of those offsets the higher interest rate?
The ad does not imply one needs to have a loan. Maybe I’m mistaken.
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