Closing US Bank Accounts to Avoid Annual Fee After Smartly Credit Card Negative Changes

As of 9/15/25, my US Bank Smartly credit card was downgraded from 4% cash back for my situation to the more restrictive version of the negative changes to the US Bank Smartly credit card, which matches what is available to new applicants. In other words, a 2% cash back card. Going for any higher cash back rewards tier would actually lose you money due to the interest you must give up on your bank balances.

US Bank changed the terms of their product less than 6 months after many people applied and opened multiple new accounts, including myself. Rather disappointing, although I would have accepted the less restrictive version. But now, since I can get better cash back elsewhere, it was time to tear down the US Bank relationship that I had previously been incentivized to build.

Before 9/15/25, I had:

  • Smartly Checking account with active deposits and withdrawals.
  • Smartly Savings account.
  • Smartly Credit Card with thousands of dollars in monthly transactions.
  • US Bancorp Investments Self-Direct Brokerage account with $100,000+ in assets.

After the negative changes, I will have:

  • Smartly Checking with $5 balance.
  • Smartly Savings (closed).
  • Smartly Credit Card with no regular activity.
  • US Bancorp Investments Self-Direct Brokerage account (closed).

This minimal setup keeps a few accounts open for possible future use, but in the meantime there will be no regular activity and no fees. The US Bank Smartly Checking has a $12 monthly fee that can be waived with a U.S. Bank Smartly credit card. The US Bank Smartly credit card itself has no annual fee. I’ll make a transaction on the checking and the credit card once a year to maintain activity and prevent closure. Hibernation mode.

The post Closing US Bank Accounts to Avoid Annual Fee After Smartly Credit Card Negative Changes appeared first on My Money Blog.

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