The U.S. Bank Smartly savings account APY rate has been lowered from 3.60% to 3.00% APY. Some people who are grandfathered into the old Smartly system use this account to meet the $100k balance to become eligible for the 4% credit card.
3% still isn’t terrible, but getting less competitive with the best 4-4.5% accounts. I might move over some funds into the U.S. Bank brokerage and buy SGOV instead. I didn’t bother earlier when the rates were closer as it was easier for me to access the savings account to pay off my card balances and the like, but with the bump down to 3% it might be worth the effort.
Update: I see now there’s also an elite money market account with an interest rate of 4.25% with at least $25,000 deposited and then maintained. Not everyone gets the 4.25% so enter your zip code first to check. I might try opening this instead, and the money market account should also count toward the $100k requirement (for those with the better nerf version which allows deposit accounts). Other readers mention a 4% 5-month CD as another option.
Another update: see this follow up post, (YMMV) U.S. Bank Smartly Savings Account Interest Rate .05% APY.
I received a letter in the mail today that USB has determined (pursuant to its reserved right at its sole discretion) that I am no longer eligible for the Smartly Savings interest rate bump and are lowering my rate to 0.05% on 9/11/25. I opened the account in Feb 2025 with my Smartly Visa application.
Same here. Maybe DOC should make a separate write up about that so others can read it easier
PROFOUNDLY absurd!
CD rate was 4%, looks like it’s 4.4% now for 5 month. I’ll consider it a win overall.
US Bank deposit products are totally worthless now. Credit cards will become worthless soon
u forgot to include the secret unpublished T&Cs indicating that 3.00% APY is only a 30 day intro promo offer. after that, the decimal will get corrected to the left. 0.03% APY w/ $100k AUM.
That’s not true at all:
https://www.usbank.com//bank-accounts/savings-accounts/bank-smartly-savings.html
Yikes.
“an elite money market account with an interest rate of 4.25% with at least $25,000 deposited and then maintained.”
It’s showing me 4% APY from my ZIP.
I currently have 100K held up in their CD at 3.96 APY. Matures 10/20/2025.
Dang – lemme hold a $20
VMFXX in my brokerage account at Vanguard gets me 4.2% without constantly chasing all the banks.
But that Vanguard account doesn’t give you 4% cash back on your credit card spend. And most of the bonus offers that require tying up funds have returns of 6% or more (for the time the funds are required to be on deposit for the bonus).
I’m assuming the higher rate Money Market fund doesn’t count for the Smartly CC tiers calculations? Unless any deposit account can be used… I guess it forces people to put $25k in the bank to get a good interest rate. In SoCal the money market is 4% not 4.25%
I saw the verbiage “deposit accounts” and assume that any deposit account works. Hopefully someone will correct me if I’m wrong.
Rather than SGOV, have you looked at alpha architect’s BOXX
For someone in a high tax state, it’s better to avoid state income tax by sticking with treasuries.
I’ve switched to BOXX from SGOV, good for tax harvest losses
Effectively killing off the savvy customers. The US Bank race to the bottom continues.
I’m still with the “I got mine” for the $450 bonus. Thanks DoC!
since i got the nerfed letter, i keep bare minimum till sep 15th when i will zero it out as well as close out my investment account keeping the checking that is still free for now with the cc. and this card will pretty much be sock drawed
Getting 4% on up to $10k/month is still really good. And if you have the V1 then you can continue to have savings and brokerage accounts count towards the $100k. I’m not getting rid of mine.
There is also a bad nerf for V1 users where savings and brokerage accounts no longer count.
I’m a V1 and the letter I got only capped the amount you could earn each month. It still indicated that savings and brokerages would count towards the balance. You’re saying certain V1 holders got letters saying that won’t be the case any longer?
I agree that it’s still a good deal for now, so I won’t be getting rid of it for now either. I feel like they’ll be cutting back on the current program again sometime soon though, so we’ll see where it goes.