U.S. Bank Problems and Solutions
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U.S. Bank may be one of the best-established banks in the U.S. But it's not exactly problem-free. Here's what you may encounter.
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Despite being one of the biggest banks in the country, U.S. Bank has its drawbacks.
Some of which can be easily solved (like expensive overdraft fees). While other problems may be heavy enough that you're better off with other banks (like fraudulent practices).
Keep reading to know if this bank can be worth an account. If you've already encountered problems with them, you may find the right solution in this article, too.
Standard Savings
- $25 minimum opening deposit
- $4 monthly maintenance fee waived with a minimum daily balance of $300, an average monthly collected balance of $1,000, one of the account holders is 12 years old or under, or opening a U.S. Bank Smartly Checking account and enrolling in the Smart Rewards® Primary tier or above.
Is US Bank Having Issues Right Now?
U.S. Bank has issues that affect certain customers. Here are some of what you need to watch out for.
U.S. Bank is a reputable bank with U.S. Bancorp as its parent company, which ranks among the highest in terms of assets. It was established in 1929 and currently serves more than 11 million customers nationwide.
Union Bank Transition Issues
U.S. Bank acquired Union Bank (formerly a Japanese-owned subsidiary) last December 2022. [1] Although it's not uncommon to have problems with transitioning accounts, it was still frustrating for Union Bank customers to encounter them.
For example, several depositors were asked for a 5-digit PIN when accessing the U.S. Bank's migration tool when they only had a 4-digit PIN. U.S. Bank responded that some banking features are unavailable due to the transition with Union Bank. [2]
This means they could not log into their accounts and conduct bill payments or other time-sensitive transactions, which caused them delays and late charges.[3]
What You Can Do:
Most, if not all, Union Bank accounts have already been converted to U.S. Bank accounts. In any case, continue monitoring your newly transitioned U.S. Bank accounts since you may still find issues in them.
If you still have unresolved transition problems, you can call their 24/7 customer support at 800-USBANKS (872-2657). You can count on U.S. Bank's support team to be responsive, according to several customers.
Fraudulent practices
For over a decade, U.S. Bank has unlawfully used its consumer data to create fictitious accounts. Specifically, some U.S. Bank employees issued credit cards to several customers without their knowledge to meet sales quota.
In spite of being aware of what was happening, U.S. Bank did not do anything to prevent and detect these unauthorized accounts. This resulted in accumulated fees and negative credit profiles for the affected customers.
When found out in 2022, the Consumer Financial Protection Bureau (CFPB) fined the bank a penalty of nearly $37.5 million. The bank was also ordered to return all unlawfully charged fees from its customers.[4]
What You Can Do:
If you were impacted by this fraudulent practice, you should be able to get a refund for all fees incurred from the unauthorized account (plus interest).
You should also keep track of your U.S. Bank accounts and watch for any irregularities. Report anything that seems suspicious as soon as possible.
Low APYs with Minimum Requirements
U.S. Bank's APY is insignificant compared to other banks. Plus, the minimum investment requirement can make it pricey to start.
For example, U.S. Bank's Elite Money Market account can get you a slightly higher interest rate than a U.S. Standard Savings account. But you're required to invest at least $25,000.[5]
A U.S. Bank Standard Savings account can be a good option for minimal savings. Although it has a monthly fee, it is fairly easy to waive it with a $300 minimum daily balance requirement.[6] You can also waive the fee through other means.
What You Can Do:
U.S. Bank offers a CD Special with competitive rates. But if you're looking for a savings account, you can opt for high-yield savings accounts from other banks for higher APYs.
You can compare the best savings rates below.
1-Month CD - 0.05% APY
- Western Alliance Bank:
High-Yield Savings Premier - 5.36% APY - CIT Bank Platinum Savings:
5.05% APY - UFB Secure Savings:
Earn up to 5.25% APY - Discover Bank:
Online Savings Account - Earn 4.25% APY - CloudBank 24/7:
High Yield Savings Account - 5.24% APY - Customers Bank:
High-Yield Savings Account - 5.11% APY - Nelnet Bank:
High-Yield Savings Account - 5.22% APY - RBMAX:
High-Yield Savings Account - 5.15% APY - Mission Valley Bank:
High Yield Savings Account - 5.12% APY - Quontic:
High Yield Savings - 4.50% APY
- CIT Bank No Penalty CD:
3.50% APY - Quontic:
CD Rates - Up to 5.05% APY - Discover Bank:
1 Year CD - 4.70% APY - Western Alliance Bank:
5-Month High-Yield CD - 5.30% APY - Consumers Credit Union:
13-Month Super Jumbo CD - 5.25% APY - Ponce Bank:
4-Month No Penalty CD - 5.15% APY - SkyOne Federal Credit Union:
5-Month High-Yield CD - 5.00% APY - American First Credit Union:
12-Month High-Yield CD - 4.90% APY - Idabel National Bank:
9-Month High-Yield CD - 4.80% APY - Blue Federal Credit Union:
15-Month High-Yield CD - 4.70% APY
Expensive Overdraft Fees
Some banks like Bank of America have significantly reduced their overdraft fees. But U.S. Bank continues to charge $36 per item with its Smartly Checking account.[7]
This can be pricey, especially since you can be charged up to 4 overdraft fees per day for a total of $144 per day.[8]
What You Can Do:
U.S. Bank has an Overdraft Fee Forgiven program. If your account is overdrawn by $50 or less, U.S. Bank will not charge an overdraft fee.
If you overdraw by over $50, the overdraft fee can be waived if you make a deposit to cover the overdrawn amount by the end of the next business day.
You can also link an existing U.S. Bank savings or money market account. U.S. Bank will transfer money from the linked savings account to cover any overdraft.
A linked credit account can also get you a lower overdraft protection transfer fee, which costs $12.50 per item.
Limited Physical Branches
U.S. Bank's physical branches are mostly concentrated in the Western and Midwest regions.[9] You can't open a personal bank account with them if there is no physical branch in your state.
What You Can Do:
Consider a different bank or credit union if you live in an area where U.S. Bank branches are not available. You can also give online banks a shot.
U.S. Bank does not provide personal or consumer banking services in New York. It only provides commercial and private wealth management services in New York.
- BMO Smart Advantage Checking:
$250 Cash Bonus - Chase Total Checking®:
$300 Bonus - Bank of America Advantage Banking:
$200 Bonus Offer - Discover® Cashback Checking – Up to $30/Month Cashback
- Axos Bank:
Rewards Checking - Up to 3.30% APY - Quontic:
High Interest Checking - Up to 1.10% APY - Fifth Third Bank:
Personal Checking Account - $200 Bonus - KeyBank:
Key Select Checking® - $200 Bonus - Upgrade:
OneCard with Rewards Checking - $200 Bonus - OnPath Federal Credit Union:
High Yield Checking - Up to 7% APY
Poor customer service
U.S. Bank has garnered lots of negative feedback with its customer service. Some customers complained that, although they had a smooth experience at the start, they received a change in service over time.[10]
This made them frustrated, with some ending up closing their accounts.[11]
What You Can Do:
Explain any issue or concern you may have by clearly providing specific details. This can help the customer service team understand and solve your problem better.
Also, although issues can be frustrating, it's best to stay calm when addressing your concerns. This can help lead you and the support team to a productive resolution.
Bottom Line
While U.S. Bank has its fair share of problems, it's important to note that others may paint a different picture based on their experiences.
These problems can help you see the flip side if you already know the benefits of an account with U.S. Bank. If you want a fuller picture, you can check out this U.S. Bank review.
U.S. Bank Smartly® Checking and Standard Savings - Up to $700 Bonus
Earn up to $500 with a new Bank Smartly Checking account. Complete the following within 90 days of account opening:
- Enroll in online banking or the U.S. Bank Mobile App
- Make two or more direct deposit(s) totaling $3,000 to $4,999.99 to earn $100, $5,000 to $9,999.99 to earn $300 or $10,000 or more to earn $500
Earn up to $200 with a new Standard Savings account.
- Make new money deposit(s) totaling $15,000 or more by July 17, 2024
- Maintain that balance until October 31, 2024
Offer may not be available if you live outside of the U.S. Bank footprint or are not an existing client of U.S. Bank or State Farm.
Silver Business Checking Package - Up to $800 Bonus
Earn up to $800 bonus when you open a new, eligible U.S. Bank business checking account online with promo code Q2AFL24 and complete qualifying activities, subject to certain terms and limitations. Offer valid through August 30, 2024. Member FDIC. Complete these steps to earn the offer:
Earn your $400.
- Complete $5,000 in new money deposits within 30 days of account opening and maintain for 60 days after account opening.
Earn your $800.
- Complete $25,000 in new money deposits within 30 days of account opening and maintain for 60 days after account opening.
Gold Business Checking Package - Up to $800 Bonus
Earn up to $800 bonus when you open a new, eligible U.S. Bank business checking account online with promo code Q2AFL24 and complete qualifying activities, subject to certain terms and limitations. Offer valid through August 30, 2024. Member FDIC. Complete these steps to earn the offer:
Earn your $400.
- Complete $5,000 in new money deposits within 30 days of account opening and maintain for 60 days after account opening.
Earn your $800.
- Complete $25,000 in new money deposits within 30 days of account opening and maintain for 60 days after account opening.
Platinum Business Checking Package - Up to $800 Bonus
Earn up to $800 bonus when you open a new, eligible U.S. Bank business checking account online with promo code Q2AFL24 and complete qualifying activities, subject to certain terms and limitations. Offer valid through August 30, 2024. Member FDIC. Complete these steps to earn the offer:
Earn your $400.
- Complete $5,000 in new money deposits within 30 days of account opening and maintain for 60 days after account opening.
Earn your $800.
- Complete $25,000 in new money deposits within 30 days of account opening and maintain for 60 days after account opening.
References
- ^ U.S. Bancorp. U.S. Bancorp Completes Acquisition of Union Bank, Retrieved 09/20/2023
- ^ X. U.S. Bank on X, Retrieved 11/01/2023
- ^ X. Soozzone on X, Retrieved 11/01/2023
- ^ Consumer Financial Protection Bureau. CFPB Fines U.S. Bank $37.5 Million for Illegally Exploiting Personal Data to Open Sham Accounts for Unsuspecting Customers, Retrieved 10/21/2023
- ^ U.S. Bank. Elite Money Market Account, Retrieved 11/01/2023
- ^ U.S. Bank. How to get a monthly maintenance fee waiver, Retrieved 11/01/2023
- ^ U.S. Bank. Consumer Pricing Information, Retrieved 10/21/2023
- ^ U.S. Bank. What types of overdraft options does U.S. Bank offer?, Retrieved 11/01/2023
- ^ U.S. Bank. Fact sheet, Retrieved 11/01/2023
- ^ Trustpilot. U.S. Bank Reviews, Retrieved 11/01/2023
- ^ Trustpilot. U.S. Bank Reviews, Retrieved 11/01/2023
U.S. Bank Smartly® Checking and Standard Savings - Up to $700 Bonus
Earn up to $500 with a new Bank Smartly Checking account. Complete the following within 90 days of account opening:
- Enroll in online banking or the U.S. Bank Mobile App
- Make two or more direct deposit(s) totaling $3,000 to $4,999.99 to earn $100, $5,000 to $9,999.99 to earn $300 or $10,000 or more to earn $500
Earn up to $200 with a new Standard Savings account.
- Make new money deposit(s) totaling $15,000 or more by July 17, 2024
- Maintain that balance until October 31, 2024
Offer may not be available if you live outside of the U.S. Bank footprint or are not an existing client of U.S. Bank or State Farm.
Chase Total Checking® - $300 Bonus
- New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
- Access to more than 15,000 Chase ATMs and more than 4,700 branches
- Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
- JPMorgan Chase Bank, N.A. Member FDIC
- Open your account online now
- Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
- Chase Overdraft Assist℠ - no overdraft fees if you're overdrawn by $50 or less at the end of the business day or if you're overdrawn by more than $50 and bring your account balance to overdrawn by $50 or less at the end of the next business day*
Bank of America Advantage Banking - $200 Bonus Offer
- The $200 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
- The offer is for new checking customers only.
- Offer expires 5/31/2024.
- To qualify, open a Bank of America Advantage Banking account through the promotional page and set up and receive qualifying direct deposits totaling $2,000 or more into that new account within 90 days of opening.
- Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- Bank of America, N.A. Member FDIC.
BMO Smart Advantage Checking - $250 Cash Bonus
Open a new BMO Smart Advantage Checking account and get a $250 cash bonus when you have a cumulative total of $4,000 in qualifying direct deposits within 90 days of account opening. Offer is limited to one per customer and is not available for existing BMO personal checking customers (including signers on joint accounts) or those who have closed a BMO personal checking account within the past 12 months. Conditions apply.
Online Savings Account - Earn 4.25% APY
- No fees
- No minimum opening deposit
- No minimum balance required
Penelope Besana is a research analyst at CreditDonkey, a bank comparison and reviews website. Write to Penelope Besana at penelope.besana@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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