Called Compass Points, it rewards the bank's credit card holders with a point for each dollar spent.

The new scheme follows the recently announced air miles frequent flyer programme announced by Shell Companies of Bermuda and the Gibbons Management Services' local credit card, Go Card.

Shell Card and GO Card's air miles programme offers air miles to card holders on Delta or American Air lines, and are issued in certificate form each year.

Bermuda Financial Network president, Dal Tucker, said, "Frequent flyer programmes have been proven in the US to significantly improve card holder loyalty. It is safe to say, it is one of the most sought after benefits for credit card programmes. "It is great for Bermuda and Bermudians that the financial institutions are starting to provide these types of financial benefits with the cooperation of the airlines and the credit card companies.'' And for the Bank of Bermuda's Compass Points customers, accumulating 30,000 points translates into a certificate for free air travel with American Airlines anywhere within the continental US or Canada.

Enrolment is automatic and the bank is awarding its consumer credit card holders 5,000 starter points. And for a limited period, new cardholders will also have the opportunity to acquire the free 5,000 starter points.

The points will be tracked on customers' monthly credit card statements, although they can only accumulate a maximum of 10,000 points a year.

The bank's customer service manager, Wayne Pimentel, said, "This is our way of rewarding our credit card customers and saying thank you for being a Bank of Bermuda customer.

"After looking at the options, we felt that a frequent flyer programme with American Airlines was our best choice, given that residents of Bermuda do a lot of travelling to the US and Canada, and American Airlines provides great service there.'' He said unlike other frequent flyer programmes, there are no minimum spending requirements and customers are not required to be signed up with the American Airlines' existing frequent flyer programme. The Compass Points Air Rewards programme includes BermudaCard, MasterCard, Visa Classic and Visa Gold credit cards, but is not available to card holders who reside off the Island or to business credit card holders.