New US Bank Smartly Visa - up to 4% Cash Back

[DatBoiQuick]

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

[CreditCuriosity]

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@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

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"Fees may be reduced or waived under certain circumstances."  What that means no idea

[phantasm]

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@ptatohed wrote:

This can be an absolute game changer.  For many, this can be a one card only solution.  Very interested.  

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Agree. I was in the process of having my SO sign up for AOD 3%/$1500 but am going to hold off on everything until the details of this emerge. This almost certainly would be the one card that rules them all.

[longtimelurker]

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@CreditCuriosity wrote:

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"Fees may be reduced or waived under certain circumstances."  What that means no idea

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Yes, not very meaningful, as the opposite "Under NO circumstances whatsoever will we even think about the mere possibility of reducing the fee" would be too strong.  Kidnap the family of the CEO and you might be able to get a 0.01% reduction!

[longtimelurker]

Two conflicting thoughts here, because the uncapped 4% seems too generous.

1) Consider the original Cash+  Uncapped 5% in some great categories (travel, home improvement, bill pay).   They had to nerf it pretty quickly

but 

2) We thought the Altitude Reserve was unlikely to last in its original form.  But it did, with some pretty minor nerfs, not impacting the major feature (3-4.5% on mobile pay).

If you put $100K in investments, I guess US Bank will be earning some money and so maybe can pay 4%, but I would still be worried about the possibility of a nerf if this involves a major move of your investments.

But it IS tempting.

[ElvisCaprice]

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@digitek wrote:

Hey all, just saw this waitlist for a new US Bank Smartly Visa card that is a flat 2% card, but gives % extra bonus depending on how much you have in total assets with them, with the maximum being 100% bonus if you have $100k with them, so total 4% on any purchases.

https://www.usbank.com/credit-cards/bank-smartly-visa-signature-credit-card.html?ibid=OTHI_72833

I actually just opened a Smartly checking with them, it has a $450 bonus if you have 2 direct deposits within 90 days for a total of $10k. The real reason I got it was that at $20k in assets you get extra reward offers on their Credit Cards, like 20% off gas up to $100 and things like that, which change every 45 days. I haven't gotten these offers yet myself, it takes about a month for them to show up, but from what I've been able to find they are worth about $100 every 45 days with common categories being groceries, dining, gas, etc...

*Edit, looks like you need a Smartly Savings account for the card, not a Smartly checking account.

Sad thing is that I just got Altitude Go for 4% back on dining and $250 SUB, but if this new card is real it would make the Altitude Go card kind of pointless. From what I can tell it's kind of like BofA in that you can park $100k in a US Bank brokerage or IRA and that will qualify for the extra rewards.

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You do get a higher interest rate in your savings account if you also have the checking account.  I don't know where you are getting that info on the new checking account.  I'm currently working on that $450 bonus for 8k in direct deposits.  Here  Earn a checking bonus | U.S. Bank (usbank.com)

It's too bad that we can't pay US Bank bills with a debit card direct or via Paypal to get that extra 1% like we do with BofA.  

I may just have to add US Bank also.  

Note:  Checking account fees waived with just having one of their CC's.  

[Gregory1776]

I have a 401k (51-52K) i need to have rolled over into something I can contribute to (Ideally more than $7,000 a year, and much more growth) and I am now seriously considering opening this. I was going to go to go to Morgan Stanley... maybe Merrell but i may do this. I like the Idea of going with the satanic mega banks for some credit card perks. 😩

There is no way this isnt nerfed. Waiting for that email. I would use this for everything. 3% back instantly. $90 off insurance every year. Wells Fargo and PenFed are about to be deleted. 😭 US Bank is about to really have more of a relationship with me. 

[ElvisCaprice]

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@Gregory1776 wrote:

I have a 401k (51-52K) i need to have rolled over into something I can contribute to (Ideally more than $7,000 a year, and much more growth) and I am now seriously considering opening this. I was going to go to go to Morgan Stanley... maybe Merrell but i may do this. I like the Idea of going with the satanic mega banks for some credit card perks. 😩

There is no way this isnt nerfed. Waiting for that email. I would use this for everything. 3% back instantly. $90 off insurance every year. Wells Fargo and PenFed are about to be deleted. 😭 US Bank is about to really have more of a relationship with me. 

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Ohh, talking dirty.  LOL

It's early, the pot may even sweeten with US Bank or more competition from BofA.  Other entrants?  I love it.

[CreditCuriosity]

I see this being capped or nerfed one or the other or both.  US Bank does have a history or doing this to different degrees as mentioned above.   With that said if one has 100k laying around and has decent amount of CC spend then it is worth it likely as AOD lasted 4+ years without a nerf and many of us made a ton of $ back so even if nerfed/capped eventually you will never know if/when this might happen and miss out on earning potential.  Obviously keep in mind likely no sign-up bonus on this card so keep that considered in your calculations although nor did the uncapped AOD at the time and 4+ years was way more than enough depending on spend to make that back(lack of sub) and much more.

[phantasm]

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@longtimelurker wrote:

Two conflicting thoughts here, because the uncapped 4% seems too generous.

1) Consider the original Cash+  Uncapped 5% in some great categories (travel, home improvement, bill pay).   They had to nerf it pretty quickly

but 

2) We thought the Altitude Reserve was unlikely to last in its original form.  But it did, with some pretty minor nerfs, not impacting the major feature (3-4.5% on mobile pay).

If you put $100K in investments, I guess US Bank will be earning some money and so maybe can pay 4%, but I would still be worried about the possibility of a nerf if this involves a major move of your investments.

But it IS tempting.

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Keep in mind banks that focus on credit cards as a major source of income covet deposits to maintain a healthy LDR (loan to deposit ratio). As of the second quarter this year USB LDR was 74.1% where the national average was 66%. By comparison Capital One was 78% at the end of 2023.

I see this as a major growth play for USB to fund rapid growth of their CC business or some other loan business. If they were to NERF this product, then almost certainly people would pull their $100k deposits and having that amount of deposits off the balance sheet would cause scrutiny by the regulators.