I was really looking forward to this 4% catchall credit card and planned to transfer one of my investment accounts to get the full 4% cashback.
But I just found out that US Investments accounts come with a lot of fees that my current brokerage, Fidelity, doesn’t have. Fidelity has no annual fees, no fees for domestic wires, and unlimited free trades. In contrast, US Investments charges a $50 annual fee for each account, offers 100 free trades, and then charges $4.95 for each additional trade, plus connection fees, and more.
Now I’m not sure if this card will really be worth it for me since I don’t usually charge a lot and I already have some good credit cards with better multipliers. So, I’m questioning whether the extra cashback from this 4% catchall card would actually be worth more than $50 a year (which is one account’s annual fee) compared to what I’m already earning with my current cards.
It would be funny if US Bank limits cashback after a lot of people move their cash in. They’ve been decreasing benefits on their cards lately and 4% on everything without limits doesn’t seem fair for them.
@Mikel
If that happens, we’ll just move our investments elsewhere. Transferring out isn’t hard since they support ACATS. I should earn more with 4% cashback in the meantime.
I parked my investments there as I hardly touch them, and with no annual fee and 100 free trades, I expect not to pay anything. This also made me finally move out and close my Betterment account because I wasn’t getting enough value for the fees.
@Zayne
Investments aren’t as quick to access as cash in checking or savings accounts though. I’ll be really annoyed if a bank pulls something like that, even if I can move my funds.
Not if you do an asset transfer (ACATS). I just did that moving from Betterment to US Bank. Only a few shares were sold, all others were transferred as they are, so the gains are not realized.
I have more expenses on my credit cards that give me 3% or more cashback, while the catchall card only offers 2%.
So, using the US Bank card might only yield an extra 1% and some smaller expenses getting 2% more. It wouldn’t add up to more than $200 a year for me. I can see someone else saying they could earn over $1000 more, but not me.
Why would I switch my money around when I could earn better interest in other high-yield savings accounts or open checking accounts with that $100k and earn bonuses, resulting in way more like SoFi offering $700, SFCU $400, Chase $900, Cap1 $500, etc., in 30 to 90 days.
@Palmer
u/swergart I also have some cards with 3% and 4%, and a 2% catchall. I doubt I’d see an extra $50 a year from the Smartly to cover the fees. But if I could get at least $200 a year, I’d consider it worth it because I’d be transferring an investment account, not cash that would do better in a high-yield account. It’s $100k across your total US Bank accounts, including investments. I think it only makes sense for investing, which is what I was thinking about in my original post. Like you said, it doesn’t make sense to keep a lot of cash since you can earn more in different ways.
@StingyATM
u/Alexia72 I understood that the $250k+ is about households. I mentioned in my original post that I’m single. Generally, when they say household requirements, it stays the same even for individuals and I thought that was the case.
Are you suggesting that if you’re just one person, the requirement to waive the fee is only $100k, not the $250k for households? I actually have a $100k+ account to transfer since I was expecting the 4% cashback mentioned in my initial post
@Reece
Yes. You need only $100k in the brokerage or investment account to avoid the fee.
Household means not just a spouse. It includes assets at US Bank. For example, if you have $50k in brokerage, $100k in checking, $50k in savings, and $50k in CDs, you’d qualify to waive the $50 fee, even though your brokerage is less than $100k.
@StingyATM
Yes, I know about US Bancorp Investments. I just didn’t feel like typing the whole name the main thing is the numbers. I just didn’t realize there was a case where the $50 fee could be waived with $100k only. I didn’t know about option 1 because it’s not mentioned on the fee page, only the total of 250k. Thanks for explaining, u/Alexia72. It’s odd that they don’t include that in the notes about the fees, just the total of 250k!
@Reece
I agree, it’s confusing. There have been several comments from customer service reps about the $100k rule. BUT, it wouldn’t hurt to check again yourself!
If you want peace of mind, you can call them at 800-888-4700.
I looked into this and even talked to a US Investment rep to clarify a few things. Honestly, the fees aren’t a major issue for me. 100 free trades a year is plenty, and that annual fee of $50 (for balances below $250k) is nothing compared to the $15k-20k I expect to earn in returns each year. Currently, my cashback credit card only gives me 1.5%, so switching to a catchall offering 4% makes total sense for me.
@Keelan
Yes, that works great if it’s a good fit for you! But comparing the annual fee to your returns isn’t right since those returns come from your investments, not the brokerage. You can hold investments with any brokerage, and mine, Fidelity, doesn’t have annual fees. I’d also see that same $15-20k in return without any fees.
I’m happy your credit card cashback is straightforward and you’re certain the 4% cashback will exceed the fees. For me, it’s likely not the case since I already have cards with 3% and 4% cashback in different categories along with Chase’s rotating 5%, as well as a 2% catchall. I’d need to calculate to see if I’d get an extra $50 per year from a 4% catchall card, but I have a feeling I won’t…
Vick said: @Reece
Agree with you. It’s mainly that most other brokerages don’t have these fees anymore.
u/htmeOw maybe the 4% catchall credit card is their way to make up for the fees, trying to attract people even with those fees… like saying, ‘You can earn it back and even more!’
the main thing is the numbers. I just didn’t realize there was a case where the $50 fee could be waived with $100k only. I didn’t know about option 1 because it’s not mentioned on the fee page, only the total of 250k. Thanks for explaining, u/Alexia72. It’s odd that they don’t include that in the notes about the fees, just the total of 250k!