AmEx Bluebird Customers Get FDIC Backing, Can Write Checks

American Express Co., the biggest U.S. credit-card issuer by purchases, is adding deposit insurance and check-writing capabilities for accounts tied to its Bluebird prepaid cards sold by Wal-Mart Stores Inc.

Bluebird customers now can have Social Security checks, military pay and other government benefits deposited directly into their accounts. The change eliminates delays for those who previously had to wait for government checks to clear since federal agencies are prohibited from wiring money to accounts that aren’t protected by the Federal Deposit Insurance Corp.