2% Fidelity vs US Bank Smartly

Discussion / Conversation Forum
1

I need help deciding whether to wait to apply for the US Bank 2% card or just go ahead and get the Fidelity one. The only thing I care about is 2% cash back and having no foreign transaction fee, so both cards meet that requirement.

FICO 8: 789

2/24 credit checks, both separated by a year.

I already have a great relationship with US Bank through a couple of business accounts, but no personal cards. I would like to start getting more US Bank personal cards because these are the category cash back options that I’m missing in my spending habits. The biggest pro for Fidelity is the sign-up bonus and also being able to use their interest accounts, making everything easy. I’ve already been doing this on PayPal’s side, and I transfer the funds every day. I know there are better APYs out there, but these funds are transferred about every two weeks to my investment accounts.

So, in the end, I would prefer the US Bank one since it looks nice and will allow me to combine cash back rewards with other cards that I plan to get from US Bank in the future. I thought they would announce that applications are live on 10/01/2024, but they did not. I can easily hit the sign-up bonus with Fidelity since I’ve been saving some purchases just for it.

I’m a little worried that if I get the Fidelity card, US Bank will deny me. Who knows though.

2

I’m also interested in the US Bank Smartly Visa, but waiting for all the details to make my decision. I’m not sure if there’s confirmation about whether it has an annual fee or if it’s 0% for foreign transaction fees. My current catch-all card is BoA PR, and I will wait until all the terms are out to see if I’ll move some money to US Bank for this card.

Assuming the US Bank Smartly Visa also has no annual fee and 0% for foreign transaction fees, I think it’s a better choice compared to Fidelity. They are both 2% cash back, but with the US Bank Smartly Visa, you can increase the cash back rate if you have enough money in US Bank (putting $5,000 can make it a 2.5% card and potentially go to 4% if you can put in more money).

3

@Fionn
I’m pretty sure I read an article confirming no annual fee. Too lazy to look for it though.

4

Kenan said:
@Fionn
I’m pretty sure I read an article confirming no annual fee. Too lazy to look for it though.

I saw that post last week on this forum. Pretty sure it was an interview with US Bank and a news organization.

5

@Fionn
That’s a good point and makes me lean back to Fidelity.

I don’t care about the 2.5% or above with the deposit. My investments are not in a brokerage account, so moving money does not apply to me.

6

@Cael
If you don’t care about the elevated rate, then just get the Fidelity card. If I’m not mistaken, I think the Alliant Visa also offers 2% if you have no assets with them. SoFi is also 2%, but it’s a Mastercard. Bread Cashback is 2% with no foreign transaction fees for what that’s worth (not much).

That’s all the 2% no foreign transaction fee cards off the top of my head.

7

US Bank Smartly will have relationship rates up to 4% at $100k. I think we’re going to see a shakeup at Fidelity, and maybe BofA due to this. It pretty much reduces the usefulness of their cards otherwise.

8

@Quill
The CCRs will still be plenty useful. It just reduces their UCR. It could also affect their PR and potentially their PRE line if there is no foreign transaction fee.

9

Elinaah said:
@Quill
The CCRs will still be plenty useful. It just reduces their UCR. It could also affect their PR and potentially their PRE line if there is no foreign transaction fee.

Agreed, but a marginal 1.25% on a max of $10k means best case a CCR is worth $125 per year. In practice, it’s worth keeping, but in my opinion, it takes a lot of the shine off opening one.

10

@Quill
I don’t think BofA cares. They beat earnings last quarter while still paying 0.01% on savings accounts. Platinum Honors BofA optimizer customers in this forum will take notice, but we aren’t the average credit card user.

I am marginally interested in what Fidelity does, though.

11

@Quill
It does feel like other banks will offer something to remain competitive.

12

@Quill
I’m concerned about the bankside investment instrument language (as opposed to brokerage accounts). Fidelity, Merrill, and other brokerage houses may not be that shaken up if standard ETFs cannot be moved to US Bank.

13

@irmah
Not sure I follow, they have a brokerage.

14

@Cael
Existing US Bank cards have a similar restriction, so it wouldn’t surprise me if the Smartly Rewards also has that restriction.

15

The Fidelity 2% has a $25 threshold before you can move the cashback rewards to your Fidelity interest earning account.

16

Mikel said:
The Fidelity 2% has a $25 threshold before you can move the cashback rewards to your Fidelity interest earning account.

Oh, I did not realize this. I thought it was just $25 to transfer the money out of Fidelity.

17

There’s not a ton of info out there about the Smartly card yet. However, even without the extra 2% from having a savings account with US Bank, I think the Smartly card should still be better if you can get a free State Farm Smartly checking account and gain access to US Bank’s great monthly Smartly credit card rewards like the 15% back at grocery stores that just showed up for me today on my Cash+ card.

18

@Gia
Yeah, pretty much what I plan on doing. Right now, I have a State Farm business card and others, so that does make sense.

19

I got the Fidelity Rewards card and my biggest issue is that you have to get 2500 points ($25) before you can withdraw to your account.

Say what you must about the Robinhood Gold card, but they let me withdraw with no minimums, so I can start earning interest or invest with my rewards as soon as I get them.

20

@Fynn
This just made me decide to wait for US Bank. Just great flip-flopping back and forth now.