U.S. Bank is changing the rewards structure for its Smartly™ Visa Signature® Card, and while it may seem like they’re offering more ways to earn, the fine print reveals that many customers will actually earn less starting September 15, 2025.
What’s Changing?
Until now, cardholders could earn a flat, unlimited 2.5%–4% cash back (depending on account balances) with no purchase caps. But starting in September:
You’ll still get 2% unlimited cash back on all purchases.
Bonus rewards (up to an additional 2%) are now capped at $10,000 in purchases per billing cycle.
The bonus is tiered by how much money you keep with U.S. Bank:
$100,000+ balance → 2% bonus (4% total)
$50,000–$99,999 → 1% bonus (3% total)
$5,000–$49,999 → 0.5% bonus (2.5% total)
Under $5,000 → No bonus (just 2% total)
Previously, some customers were earning 3.5% to 4% cash back without limits — and now those returns are capped and harder to reach.
What’s Worse Now?
Bonus cash back is no longer unlimited. It’s capped at $10,000 in purchases per billing cycle.
Your bank balance now controls your bonus rate, favoring high-net-worth customers.
Certain common purchases are excluded (like education, taxes, business transactions, gift cards).
Even if you hit the cap, excluded categories don’t count toward that $10,000.
What You Can Do
If you have under $5,000 with U.S. Bank, your card effectively becomes a basic 2% cash back card, which is less competitive than others on the market.
Consider alternative cards offering flat 2.5% or more, or rotating bonus categories with no balance-based restrictions.
If you do maintain large balances at U.S. Bank, you’ll need to carefully watch category exclusions and monthly spending to hit the full bonus.
Bottom Line
This change mostly benefits wealthier customers with six-figure U.S. Bank balances and penalizes others by cutting their effective cash back rate. While the 2% base remains, the old simplicity and generosity of the program are being replaced by caps and hoops.
Leave a Reply