USB Smartly rumors

[NoMoreE46]

huh - surprising:

 https://www.doctorofcredit.com/rumor-u-s-bank-smartly-visa-credit-card-to-be-discontinued/

[cashorcharge]

You beat me to it! Just read and was going to share the same.  All that hype....to then get disco'd in less than 6 months.....oops

[cjesser15]

Unfortunate.  I moved my checking to US Bank and bought a bunch of CDs from them solely because of the Smartly Credit card.  Hopefully we're grandfathered or there's no reason to stay.  I hadn't gotten around to moving my investments to them yet, but I was planning on it.  Guess this changes that decision for the time being. 

[swankytiger]

They must have underestimated the kind of user who has the money to max the smartly and the type of card user they are.  Im guessing it is wildly unprofitable. Are we seeing a GS/Apple Card and WF/Bilt card type of misstep? Though with it being their card, they can just discontinue it, rather than being stuck in a contract.

[IntegerIntrovert]

Good thing I didn't close my AR.

[creditrizz]

Too many people have 100k in investible assets.  Should have set the minimum for 4% at 300k, and made 100k the 3% the threshold.  Even these levels may be a bit too low after all of the inflation we had recently and may have in the near future.

Fidelity had a 3% rate on their card for a while, but even years ago set the minimum assets to quality to I think 500k (maybe even 1M, can't remember).  Even then they ended up discontinuing it.  Fidelity is an awesome platform though, so they can set their threshold higher than someone like US Bancorp that has a relatively feature-poor trading platform.

If they grandfather us in I'll probably hold off on doing things like charging taxes to it, since it will be the holy grail card I wouldn't want to risk cancellation of. 

[Anonymous]

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@creditrizz wrote:

Too many people have 100k in investible assets.  Should have set the minimum for 4% at 300k, and made 100k the 3% the threshold.  Even these levels may be a bit too low after all of the inflation we had recently and may have in the near future.

Fidelity had a 3% rate on their card for a while, but even years ago set the minimum assets to quality to I think 500k (maybe even 1M, can't remember).  Even then they ended up discontinuing it.  Fidelity is an awesome platform though, so they can set their threshold higher than someone like US Bancorp that has a relatively feature-poor trading platform.

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The 3% was for those holding $2M+ in MANAGED assets, which implied a minimum of $10-20K in annual fees.  If you felt the fee was worth it for the management, then the 3% is a nice freebie, but even the most hardened MyFico wouldn't pay that JUST to get 3%

So US Banks offering was way off the norm.    It's nice that they have a creative team but the ideas should be checked for economic soundness a little bit better. It's easy to come up with attractive products to get market share, making it profitable is slightly more difficult!

I wonder if they really didn't think  that many would take the $100K positions.   

Or, to be rude:  maybe they did really detailed calculations, but because their IT, um, sucks, the decimal point was wrong by two places!

[swankytiger]

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@creditrizz wrote:

Too many people have 100k in investible assets.  Should have set the minimum for 4% at 300k, and made 100k the 3% the threshold.  Even these levels may be a bit too low after all of the inflation we had recently and may have in the near future.

Fidelity had a 3% rate on their card for a while, but even years ago set the minimum assets to quality to I think 500k (maybe even 1M, can't remember).  Even then they ended up discontinuing it.  Fidelity is an awesome platform though, so they can set their threshold higher than someone like US Bancorp that has a relatively feature-poor trading platform.

If they grandfather us in I'll probably hold off on doing things like charging taxes to it, since it will be the holy grail card I wouldn't want to risk cancellation of. 

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I mean multiple other banks have the $100k limit and seem fine. BoA for 2.625/3.5% and Logix for 3% are both there, and Alliant is 2.5% on $10k/month. So what has US Bank done different?

[creditrizz]

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@swankytiger wrote:

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@creditrizz wrote:

Too many people have 100k in investible assets.  Should have set the minimum for 4% at 300k, and made 100k the 3% the threshold.  Even these levels may be a bit too low after all of the inflation we had recently and may have in the near future.

Fidelity had a 3% rate on their card for a while, but even years ago set the minimum assets to quality to I think 500k (maybe even 1M, can't remember).  Even then they ended up discontinuing it.  Fidelity is an awesome platform though, so they can set their threshold higher than someone like US Bancorp that has a relatively feature-poor trading platform.

If they grandfather us in I'll probably hold off on doing things like charging taxes to it, since it will be the holy grail card I wouldn't want to risk cancellation of. 

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I mean multiple other banks have the $100k limit and seem fine. BoA for 2.625/3.5% and Logix for 3% are both there, and Alliant is 2.5% on $10k/month. So what has US Bank done different?

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Dont know what logix is but I don't see why I even have to explain to you how 2.6 or a capped 2.5 are not at all comparable to an unlimited 4%

[Bockrocker]

Logix is a credit union that offers a 3% MasterCard with 100k relationship.  The difference in that case being there is no brokerage, you have to hold the money in a normal deposit account and they will be earning more interest on the money than they will pass on to you, helping to pay for the rewards.