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U.S. Bank Debuts Smartly Card with Savings-Tied Rewards Tiers
U.S. Bank is launching a new rewards credit card that will allow customers to earn up to 4% cashback.
About the U.S. Bank Smartly card:
This week, U.S. Bank formally announced the U.S. Bank Smartly Visa card — along with the Bank Smartly Savings account. These two products will be linked as Bank Smartly Visa cardholders will earn enhanced rewards based on their banking balance.
First, the U.S. Bank Smartly card will earn a base of 2% back on all purchases. However, those with a Bank Smartly Savings account can increase this cashback rate based on their account balance. Actually, in addition to their Bank Smartly Savings balance, tier eligibility will be determined by a customer’s daily combined balances in U.S. Bank deposit, trust, and investment accounts.
The Bank Smartly balance reward tiers are as follows:
- 2.5% back: $5,000 – $49,999
- 3% back: $50,000 – $99,999
- 4% back: $100,000 or more
As U.S. Bank notes, the 4% flat rate rewards category is the “highest level of cashback rewards in the market.” Additionally, funds in the Bank Smartly account will currently earn 4.10% APY on funds (when customers also have either the Bank Smartly card or an eligible checking account).
At this time, U.S. Bank has a waitlist open for the Bank Smartly Card. Of note, the product page nor the press release indicates whether the card will carry an annual fee.
What they’re saying:
Announcing the new options, U.S. Bank’s head of consumer and business banking products Arijit Roy said, “There has never been a better time to become a U.S. Bank client. U.S. Bank Smartly provides a simple, rewarding experience for our clients, with additional benefits based on their total relationship with us.”
Roy continued. “Now, with the Bank Smartly Card and Bank Smartly Savings, clients can enjoy even more rewards that are focused on savings rates and making the most of credit card purchases.”
My thoughts:
A tiered cashback that’s tied to your bank account balance reminds me of what Bank of America does with its Preferred Rewards program. Under that scheme, those with combined Bank of America deposit and Merrill investing balances of $20,000 or more can earn an extra 25% in credit card rewards, while those with at least $50,000 earn a 50% bonus and those with combined balances in excess of $100,000 can earn a 75% bonus. In context, this means that those in the 75% bonus Platinum Honors Tier could earn 5.25% cashback in their top eligible spending category with the Customized Cash Rewards card or 2.62% back on all purchases with the Unlimited Cash Rewards card.
With that in mind, what’s nice about this U.S. Bank Smartly Visa in comparison to BofA is that the first tier starts at a much lower $5,000. Plus, those in the $100,000+ tier can opt for a flat 4% cashback — rather than choose between the 2.62% across-the-board card or 5.25% category-specific option at Bank of America.
Assuming that the card doesn’t have an annual fee and that customers can comfortably hold $50,000 or more with U.S. Bank (in order to earn at least 3% back), the Bank Smartly Card could instantly become the best “everything else” card available.
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Other Articles by Kyle Burbank
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