US Bank Debuts Savings and Credit Rewards Products

U.S. Bank is introducing a pair of savings and credit rewards products.

Released under the bank’s Bank Smartly program, these offerings are designed to work in tandem to let users maximize credit card rewards and earn more on their savings balances, according to a Wednesday (Sept. 4) news release.

The Bank Smartly card, offered through Visa, gives users up to 4% cash back on every purchase, while U.S. Bank Smartly Savings is a competitive rate savings account, per the release.

“The combination provides an everyday banking solution that empowers clients to manage their money easily, while maximizing cash back rewards based on total eligible balances with U.S. Bank,” the release said.

“When paired with a Bank Smartly Savings account and average daily combined balances in U.S. Bank deposit, trust or investment accounts, clients can increase their earning opportunities up to as much as 4% cash back on all purchases — the highest level of cash back rewards in the market,” the release added. “Reward levels increase with the cardholder’s combined average daily eligible balance.”

The offering comes as consumers are having a tougher time saving, PYMNTS reported last month. The savings rate as a percentage of disposable income now stands at about 3%, down from about 5% a year ago.

In the meantime, PYMNTS Intelligence found that consumers are exhausting their savings every few years. If savings are wiped out and the savings rate is relatively low, replenishing those cash reserves takes increasingly longer.

“The indebtedness level of the U.S. consumer doesn’t help matters, particularly given the hump in card debt being carried across all income levels, and particularly for paycheck-to-paycheck consumers,” that report said.

Meanwhile, the PYMNTS Intelligence report “Credit Unions and Community Banks Gain Credit Card Issuing Momentum” found that larger national banks are losing ground when it comes to issuing credit cards. Sixty-eight percent of consumers turned to national banks to issue their primary credit cards, down from 76% a few years ago.

The report also revealed that 24% of consumers would prefer that a more local option, such as their credit union or community bank, issue the main credit card they use.