(Update) [Rumor]U.S. Bank Smartly Changes After April 14th: Exclusions on 4% Earn (Tax, etc) & Brokerage Funds Exclusion (For New Signups)

Update 4/8/25: Most of the rumors were correct – see this updated post for the full details.

Update 4/7/25:

  • There’s a memo U.S. Bank sent to their bankers telling them that a new version of the Smartly card will be available starting April 14th.
  • The memo makes clear that those who already signed up or who sign up before April 14th will keep the old features and benefits.
  • You can see a screenshot of the memo here.
  • The memo says to stay tunes for April 8th when resources on the new card version will become available.
  • The memo also mentions changes coming on May 19th.
  • It seems that until at least May 19th grandfathered Smartly cardholders will keep the existing benefits and terms. Even beyond May 19th, the grandfathered cards will apparently have different/better terms than the newer signups who after April 14, 2025.
  • We might know more tomorrow when we’ll hopefully learn about the resources being sent out to bankers then.
  • Hat tip to zanutrees on Reddit

Original Post 4/1/25:

A rumor on r/creditcards tells of changes coming to the U.S. Bank Smartly card, beginning April 14, 2025:

  1. Bonus earn rate now excludes: Educational/school, gift cards, insurance, taxes, business-to-business transactions, and third-party bill payments.
  2. Any earning bonus is now capped at 10k/spend per statement cycle.
  3. For NEW cardmembers who sign up after April 14th: only checking account balances will count towards the 10k/50k/100k requirement. Savings balances and investment balances do not count.

Another small change coming is that the 2.5% tier earn will require $10,000 in balances (previously $5,000).

Our Verdict

The rumor seems to be that for existing customers brokerage and savings funds will still count, just not for new customers. And that for all customers there will be a $10,000 monthly limit. And that for all customers taxes and education won’t earn bonus rewards, just the base 2%.

We pretty much knew that some changes were coming. My hope had been an easy $10k/month or $100k/year spend threshold. Which they will be doing, per the rumor. But they also added the taxes and insurance exclusion. Altogether this would amount to a total nerf job.

I expect we’ll see some of these changes, but let’s hope we don’t have all the details right. (I find the savings account exclusion surprising.)

I hate the exclusions: (1) it obviously limits the usefulness of the card, and (2) it even makes me hesitate using the card on legitimate spend for fear that it might somehow fall under one of the excluded categories. For example, I just paid a contractor a large bill with my Smartly card knowing that the rewards would cover the surcharge. But can I be confident that it won’t somehow mistakenly code as ‘business-to-business’ and just earn 2% instead of 4%? It’s always something of a guessing game, depending how the contractor set up his credit card processing code.

Assuming these changes all comes true, I might just move on back to the BofA 2.62% card. I suppose since I have the 4% all set up already I’ll continue it for purchases that I’m confident will earn 4%. If, at some future date, U.S. Bank ever stops allowing brokerage funds to count for existing cardholders, I’ll move on and close the card out.

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193 Comments
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Tim
Tim (@guest_2040611)
April 8, 2025 16:16

I am almost at 100% usage of my CL on this card after charging the property tax and paying to IRS. My next statement date is 5/1/2025. I am not going to recycle the CL and will not charge anything until next cycle starts. The questions are (1) Should I pay down the balance between now and the current statement closes? (2) I assume everyone on this card has 0% APY on purchase during the first 12 months cycle. Is it safe to take the advantage of this? If yes, what is the amount (%) should I leave on the balance to avoid negative impact? Thanks.

Kevin
Kevin (@guest_2040501)
April 8, 2025 14:19

if it gets nerfed on May 19th the withdrawals on May 20th are going to look like a bank run lmao

midas89
midas89 (@guest_2040489)
April 8, 2025 14:09

So, to summarize: If someone applies for this card on or after 4/14/25 and they want 4% cash back, they will need to do what most people here would never do, and that is keep a minimum $100K in a US Bank checking account that pays virtually zero interest. And even if someone keeps $100K minimum in the checking account, they would not be able to get the 4% cash cash back on tax payments and gift card purchases, etc. For all excluded categories, they would get 2% cash back. Also, after $10,000 spend in a billing cycle, all qualified charges only earn 2% cash back.

For those that either have the card now or apply before the 14th, for now we continue unlimited 4% with no excluded categorizes and no billing cycle $10,000 cap, and we are not forced to keep our $100K minimum in a US Bank checking account.

K-man
K-man (@guest_2040255)
April 8, 2025 09:48

Looks like they are also nerfing the Altitude cards on the 14th. Limiting bonus to $2k spend per quarter. Points expire after 12 months with no activity. Ouch.

Chad
Chad (@guest_2040263)
April 8, 2025 09:56
K-man
K-man (@guest_2040267)
April 8, 2025 10:00

It’s also listed on the terms here: https://www.usbank.com/credit-cards.html
Go has 2k limit. Both Go and Connect have expiring points.

Frank
Frank (@guest_2040252)
April 8, 2025 09:45

Worst case scenario this card will become USBank DoubleCash. With Visa instead of MasterCard (works for Costco I guess).

Danny
Danny (@guest_2040453)
April 8, 2025 13:32

It’s a shame. Fidelity 2% visa already exists for Costco needs.

Pete
Pete (@guest_2040499)
April 8, 2025 14:18

Isn’t that already their Fidelity card? (usbank is elan?)

Jack
Jack (@guest_2040139)
April 8, 2025 02:26

It’s hard to offer an honest comment that doesn’t sound sarcastic. We all knew something like this was going to happen. The bank’s credit card strategy seems haphazard.

John
John (@guest_2040110)
April 8, 2025 00:58

“The memo makes clear that those who already signed up or who sign up before April 14th will keep the old features and benefits.”

It’s a trap!

Sam
Sam (@guest_2040100)
April 8, 2025 00:21

us bank was really conservative in the past so it was surprising they went so far out with this product that seemed too good to be true for anyone with mass spend

Brian
Brian (@guest_2040073)
April 7, 2025 23:46

How much confidence can you have in an ecosystem that nerfs after less than 6 months? I’m getting off this Titanic and heading back to BofA.

Josh
Josh (@guest_2040070)
April 7, 2025 23:43

So should people apply or nah at this point?

Dan
Dan (@guest_2040375)
April 8, 2025 12:01

If you want to use up a 5/24 slot and want to take the risk that they won’t nerf it in the near future, go for it.

Heronva
Heronva (@guest_2040859)
April 8, 2025 21:15

It’s still the best card going. Get grandfathered in now and let the future take care of itself. Until USBank make other changes, there’s still money to be made.