Credit Card News
U.S. Bank Makes Big Changes to Bank Smartly Credit Card
Just six months after U.S. Bank launched its unique Bank Smartly Visa Card, some major changes have been made.
About the Updates to the U.S. Bank Smartly Visa Card:
Last fall, U.S. Bank announced its Bank Smartly card. With this product, customers could earn a base of 2% back on all purchases — but that could be doubled for those with larger banking balances. Although that core structure will remain, U.S. Bank is clamping down on top rewards in a few ways.
First, the enhanced rewards tiers will now see a monthly spending cap. Specifically, the 2.5%, 3%, and 4% earnings will only apply to the first $10,000 in eligible Net Purchases each billing cycle. Any purchases beyond that threshold will earn the base 2% back.
What’s more, U.S. Bank is also adjusting what funds qualify toward the various earnings tiers. Previously, these tiers were determined by a customer’s daily combined balances in U.S. Bank deposit, trust, and investment accounts. Now, only funds in U.S. Bank Smartly Checking and/or Safe Debit account will qualify. Notably, this even excludes balances kept in the U.S. Bank Smartly Savings account, although customers must have said savings account in order to apply for the card.
Finally, the card is increasing the minimum balance requirement for the lowest tier from the previous $5,000 to $10,000. The updated rewards tiers (based on balance) are as follows:
- 2.5% back: $10,000 – $49,999
- 3% back: $50,000 – $99,999
- 4% back: $100,000 or more
Despite these changes, some things about the U.S. Bank Smartly Visa card are staying the same. Namely, the card has no annual fee. It also does not currently offer any welcome bonus.
My Thoughts:
WOW! U.S. Bank must have made a huge mistake with this card off the bat if they’re making moves this desperate so soon. Clearly, a number of people caught on to how valuable the original version of this card could be. On that note, reports suggest that current cardholders will retain the original terms, with these updates only applying to newcomers… at least for now.
While I suspect the earnings cap will be the first thing that jumps out to most people, for me the adjustment in what qualifies for each tier is the far more impactful change. To that point, the fact that they’re excluding funds placed in the companion savings account that the Bank Smartly card shares a name with is absolutely ludicrous.
Personally, while I may have briefly considered doing the leg work required to get to that 4% tier, I’m now quite glad that I didn’t make an effort to get this card. After all, even if current customers will apparently get to ride the gravy train a bit longer, I can’t see that continuing beyond a few more months.
Ultimately, I suppose this revamp gives us a better idea about where the line is when it comes to rewards credit cards and keeping them profitable for companies rather than consumers.
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