Also dont forget US Bank still charges like $5 per trade(you get 100 free per year.)
It is an interesting option if you can park $50k-100k somewhere or just park your Roth IRA/Rollover IRA there.
We will see if it fleshes out to actually be decent vs the BoA set up or the Logix FCU set up.
I agree with much of the overall feelings stated by many. Big potential with this, but everyone needs to be careful to do their own math. The brokerage account path sounds good in theory but the $50 annual fee cuts into the overall picture. Still, this is one I will be watching very closely.
This addresses one big gap I had had with US Bank in the CC space. I would be willing to eventually get down to maybe even as few as 1 or 2 issuers for pure simplicity sake (just my individual preference). The "everything else" 2% cash back space had been US Bank's biggest gap. I am quite impressed that they didn't just spit out another standard 2% back card, but are actually making it more potentially lucrative for both them and us as customers. Very creative way to drive more relationship banking. Good on them.
Just when I told myself I'd cool it on the new apps.
Interesting, I'll be retiring a little early in a few years to slow travel around the world, so need to plan on a simplified card setup, and having a backup in case BoA/Merrill flips out over me not being in the USA for years at a time...🤔
I wonder how sensitive US Bank is to that?
@1LostArk wrote:GG to everyone who can get this and BofA platinum honors at the same time.
Not too hard if you've got an IRA you've been maxing out for a couple of decades, just a question of if it is worth the extra upkeep.😉
@CreditCuriosity wrote:
@DatBoiQuick wrote:There is a $50 annual fee for investment accounts with U.S. Bancorp for accounts with less than $250k
https://www.usbank.com/investing/online-investing/self-directed-investing/brokerage-fees.html"Fees may be reduced or waived under certain circumstances." What that means no idea
I saw this too.
Per note (6) on this US Bank Link:
"Annual account/IRA fees may be waived for clients with a statement household balance > $250k."
Self-Directed Investing:
Currently, U.S. Bancorp Investments offers 100 free equity trades per year for self-directed clients who opt for paperless statements and open a U.S. Bank Smartly Checking account, which may have a monthly fee. This account type does involve trading fees: $4.95 for stocks, ETFs, and options, plus an additional $1 per option contract. Mutual fund transactions cost $25. (source)
Meanwhile, Bank of America - Merrill Lynch:
Unlimited $0 online stock and ETF trades with no trade or balance minimums.
No annual account fee.
@Kforce wrote:
@ptatohed wrote:This can be an absolute game changer. For many, this can be a one card only solution. Very interested.
Less than a week after me getting the Alliant.
Made my first charge on the new card, 5 minutes ago.
Reminds me of the AOD being release less than a month
after jumping on the 3% - USAlliance.
Just have bad timing.
4% tops the BofA 2.65% for those wanting 1-2 cards only.
This card seems squarely-aimed at the Bank of America's Preferred Rewards program, in particular. But I wouldn't be so quick to put it as far ahead as it first may seem. Sure, 4% versus 2.625%* sounds huge. I'm not dismissing that 4% in cash, uncapped and uncategorized on one single card isn't an awesome deal. But so is the combination of Bank of America's rewards and fee perks.
(*For those unfamilar, the Preferred Rewards program gives a 75% credit card reward bonus to Platinum Honors members with at least $100K in banking and investment accounts. So the 1.5% uncapped and uncategorized return on Unlimited Cash Rewards, Premium Rewards, or Premium Rewards Elite cards is worth 1.5 x 1.75 = 2.625%.)
Beyond the possibility of possible additional fees we discussed above, focusing on this one rate of return (up to 4%) ignores several other Preferred Rewards variables. While the Bank Smartly Visa has a flat rate, the Preferred Rewards program has several rates that could earn as high or higher in many areas. All of the below is based on Platinum Honors status ($100K.)
- It's true that the Unlimited Cash Rewards Visa earns 2.625% on everything. However, the Premium Rewards Visa and Premium Rewards Elite Visa Infinite earn even higher returns. While both cards have an AF, they are both loaded with credits and/or travel perks that offset most or all of those fees for those who travel even occasionally. In addition to 2.625% cash back on uncategorized spend, both of the Premium Rewards cards earn 3.5% cash back on all dining and travel purchases, uncapped.
- The Premium Rewards Elite points can be redeemed for airfare through the BofA travel portal at a 20% discount. Sure, it's not cash back if you're a cash back purist. But it's definitely a good value. That bumps the earnings rates up to 3.28125% everything (2.625% / 0.8) and 4.375% for dining and travel (3.5/0.8).
- Bank of America ALSO allows multiple Customized Cash Rewards cards that earn 5.25%* in selected categories (gas and EV charging stations; online shopping, including cable, internet, phone plans and streaming; dining; travel; drug stores and pharmacies; or home improvement and furnishings.) Caps are set at a high $2,500 per quarter, $10K per year. With multiple cards and depending on spend, this has the potential to significantly skew overall rewards return. (*CCR earns up to 3%; 3.0 x 1.75 = 5.25%.)
- Those same BofA CCR cards also offer 3.5%* at grocery stores and warehouse stores included in that $2,500 limit per quarter, thereby skewing overall rewards return. (*CCR earns 2%; 2.0 x 1.75 = 3.5%)
- Bank of America Preferred Rewards isn't just a program for credit card rewards, although we often focus on these on the forum. Preferred Rewards has discounts on mortgages, auto loans, home equity loans, Merrill Guided Investing, banking services including fees at other bank's ATMs, and a boost on savings account interest. And there are no monthly maintenance fees on up to four checking and four savings accounts without any strings attached.
So with Bank of America and that same $100K deposit, you could have:
Uncapped and Uncategorized spend: 3.28125% airfare redemptions (or 2.625% for cash.)
Dining: 4.375% airfare redemptions. (or 5.25% in cash on CCR or 3.5% on PR/PRE.)
Travel: 4.375% airfare redemptions. (or 5.25% in cash on CCR or 3.5% on PR/PRE.)
Per each CCR card, $2,500 cap per quarter on:
- Internet, phone, streaming: 5.25% in cash.
- Home Improvement: 5.25% in cash.
- Drug Stores: 5.25% in cash.
- Gas: 5.25% in cash.
- Internet Shopping: 5.25% in cash.
- Groceries: 3.5% in cash. (included in above cap for any)
- Warehouse: 3.5% in cash. (included in above cap for any)
Depending on spend, I'm not sure it would make as much difference as it appears at first glance, especially once you add in differences in fees or customer service.
@Aim_High wrote:
@Kforce wrote:
@ptatohed wrote:This can be an absolute game changer. For many, this can be a one card only solution. Very interested.
Less than a week after me getting the Alliant.
Made my first charge on the new card, 5 minutes ago.
Reminds me of the AOD being release less than a month
after jumping on the 3% - USAlliance.
Just have bad timing.
4% tops the BofA 2.65% for those wanting 1-2 cards only.
This card seems squarely-aimed at the Bank of America's Preferred Rewards program, in particular. But I wouldn't be so quick to put it as far ahead as it first may seem. Sure, 4% versus 2.625%* sounds huge. I'm not dismissing that 4% in cash, uncapped and uncategorized on one single card isn't an awesome deal. But so is the combination of Bank of America's rewards and fee perks.
(*For those unfamilar, the Preferred Rewards program gives a 75% credit card reward bonus to Platinum Honors members with at least $100K in banking and investment accounts. So the 1.5% uncapped and uncategorized return on Unlimited Cash Rewards, Premium Rewards, or Premium Rewards Elite cards is worth 1.5 x 1.75 = 2.625%.)
Beyond the possibility of possible additional fees we discussed above, focusing on this one rate of return (up to 4%) ignores several other Preferred Rewards variables. While the Bank Smartly Visa has a flat rate, the Preferred Rewards program has several rates that could earn as high or higher in many areas. All of the below is based on Platinum Honors status ($100K.)
- It's true that the Unlimited Cash Rewards Visa earns 2.625% on everything. However, the Premium Rewards Visa and Premium Rewards Elite Visa Infinite earn even higher returns. While both cards have an AF, they are both loaded with credits and/or travel perks that offset most or all of those fees for those who travel even occasionally. In addition to 2.625% cash back on uncategorized spend, both of the Premium Rewards cards earn 3.5% cash back on all dining and travel purchases, uncapped.
- The Premium Rewards Elite points can be redeemed for airfare through the BofA travel portal at a 20% discount. Sure, it's not cash back if you're a cash back purist. But it's definitely a good value. That bumps the earnings rates up to 3.28125% everything (2.625% / 0.8) and 4.375% for dining and travel (3.5/0.8).
- Bank of America ALSO allows multiple Customized Cash Rewards cards that earn 5.25%* in selected categories (gas and EV charging stations; online shopping, including cable, internet, phone plans and streaming; dining; travel; drug stores and pharmacies; or home improvement and furnishings.) Caps are set at a high $2,500 per quarter, $10K per year. With multiple cards and depending on spend, this has the potential to significantly skew overall rewards return. (*CCR earns up to 3%; 3.0 x 1.75 = 5.25%.)
- Those same BofA CCR cards also offer 3.5%* at grocery stores and warehouse stores included in that $2,500 limit per quarter, thereby skewing overall rewards return. (*CCR earns 2%; 2.0 x 1.75 = 3.5%)
- Bank of America Preferred Rewards isn't just a program for credit card rewards, although we often focus on these on the forum. Preferred Rewards has discounts on mortgages, auto loans, home equity loans, Merrill Guided Investing, banking services including fees at other bank's ATMs, and a boost on savings account interest. And there are no monthly maintenance fees on up to four checking and four savings accounts without any strings attached.
So with Bank of America and that same $100K deposit, you could have:
Uncapped and Uncategorized spend: 3.28125% airfare redemptions (or 2.625% for cash.)
Dining: 4.375% airfare redemptions. (or 5.25% in cash on CCR or 3.5% on PR/PRE.)
Travel: 4.375% airfare redemptions. (or 5.25% in cash on CCR or 3.5% on PR/PRE.)
Per each CCR card, $2,500 cap per quarter on:
- Internet, phone, streaming: 5.25% in cash.
- Home Improvement: 5.25% in cash.
- Drug Stores: 5.25% in cash.
- Gas: 5.25% in cash.
- Internet Shopping: 5.25% in cash.
- Groceries: 3.5% in cash. (included in above cap for any)
- Warehouse: 3.5% in cash. (included in above cap for any)
Depending on spend, I'm not sure it would make as much difference as it appears at first glance, especially once you add in differences in fees or customer service.
"4% tops the BofA 2.65% for those wanting 1-2 cards only".
The key is for those wanting it simple and just a couple of cards.
Nothing against the BofA card set and investments, it is just not a 1-2 card plan.
I was content with the AOD 3% for all my spend.
Just added the Alliant for a two card set.
4% would be nice but I have reservations about it lasting and
want others to test the water. Won't be first to jump on
this, although I do like the basic concept.
Fot those that dislike managing a dozen cards it gives an alternate path.
I mean BoA is fine for me since I dont really have the spend where 2.625% vs 4% is more than maybe $100-200 per year.