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.
U.S. Bank Smartly® Savings account
- Competitive interest rates to grow your savings.
- Unlock even higher rates with an eligible checking account and combined qualifying balances.
- Waive your monthly maintenance fee when you maintain a U.S. Bank Smartly® Checking or Safe Debit account.
- Access to easy-to-use digital budgeting tools to help you monitor all your accounts and set clear financial goals.
Member FDIC.
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 Smartly® Savings account without an eligible product will earn a low standard variable interest rate. To earn higher rates, you must meet certain requirements to qualify for relationship rates.
A U.S. Bank Smartly® 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 Bank Smartly® Checking or Safe Debit account, or for accounts with a minor under the age of 18.
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.
Alternatively, you can pair your Bank Smartly® Savings account with an eligible account and maintain a combined qualifying balance to qualify for the relationship rate.
You can compare the best savings rates below.
1-Month CD - 0.05% APY
- Western Alliance Bank:
High-Yield Savings Premier - 4.46% APY - Discover® Online Savings:
$200 Cash Bonus - CIT Bank Platinum Savings:
4.35% APY - Mission Valley Bank:
High Yield Savings Account - 4.50% APY - DR Bank:
High-Yield Savings Account - 4.40% APY - Dayspring Bank:
High-Yield Savings Account - 4.30% APY - Paprika Capital Bank:
High-Yield Savings Account - 4.29% APY - First Community Bank:
High-Yield Savings Account - 4.22% APY - The State Exchange Bank:
High Yield Savings Account - 4.20% APY - CFBank National Association:
High-Yield Savings Account - 4.20% APY
- Western Alliance Bank:
High-Yield CD Rates - Up to 4.50% APY - SkyOne Federal Credit Union:
12-Month No-Penalty CD - 4.25% APY - CIT Bank Term CDs:
Up to 3.50% APY - American First Credit Union:
12-Month High-Yield CD - 4.00% APY - Technology Credit Union:
5-Month No Penalty CD - 4.00% APY - Freedom Bank:
12-Month No-Penalty CD - 3.75% APY - Blue Federal Credit Union:
15-Month High-Yield CD - 3.75% APY - Quontic:
CD Rates - Up to 4.25% APY - Discover Bank:
1 Year CD - 4.00% APY - Consumers Credit Union:
9-Month Super Jumbo CD - 4.50% 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.[5]
This can be pricey, especially since you can be charged up to 4 overdraft fees per day for a total of $144 per day.[6]
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.[7] 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.
- Bank of America Advantage Banking:
$300 Bonus Offer - HSBC Premier:
Earn Up to $2,500 - Chase Total Checking®:
$300 Bonus - First Tech Rewards Checking®:
Up to $300 Bonus - 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 - KeyBank:
Key Smart Checking® - $300 Bonus - Upgrade:
OneCard with Rewards Checking - $200 Bonus - Consumers Credit Union:
Free Rewards Checking - Earn Up to 5% 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.[8]
This made them frustrated, with some ending up closing their accounts.[9]
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 - Up to $450 Bonus
Earn up to $450 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 deposits(s) totaling $2,000 to $4,999.99 to earn $250, $5,000 to $7,999.99 to earn $350 or $8,000 or more to earn $450.
Fund your new account within 30 days to start qualifying activities. Offer may not be available if you are an existing U.S. Bank customer or live outside of the U.S. Bank footprint.
Silver Business Checking account - $400 Bonus
Promo code Q4AFL24 MUST be used when opening a U.S. Bank Silver, Platinum, or Business Essentials (Available in AZ, NV, CO, NM, OH, IN, KY and TN) Business Checking account. Limit of one Business Checking bonus per business. A $100 minimum deposit is required to open one of the referenced accounts.
Earn your $400 Business Checking bonus by opening a new U.S. Bank Silver Business Checking or Business Essentials (not available in all markets) account between 10/1/2024 and 1/15/2025. You must make deposit(s) of at least $5,000 in new money within 30 days of account opening and thereafter maintain a daily balance of at least $5,000 until the 60th day after account opening.
New money is considered money that is new to U.S. Bank. Funds must come from outside U.S Bank and cannot be transferred from another U.S. Bank product or a U.S. Bank Affiliate. Checking account fees (e.g., monthly maintenance, paper statement fee, etc.) could reduce the qualifying daily balance, therefore you must make deposit(s) to cover the fees to maintain the daily balance during the qualifying period to be awarded the bonus. Refer to the Business Pricing Information or Business Essentials® Pricing Information Document for a list of fees.
The business checking bonus will be deposited into your new eligible U.S. Bank Business Checking account within 30 days following the last calendar day of the month you complete all of the offer requirements, as long as the account is open and has a positive available balance.
Offer may not be combined with any other business checking account bonus offers. Existing customers (businesses) with a business checking account or customers (businesses) who had an account in the last 12 months, do not qualify.
All regular account-opening procedures apply. For a comprehensive list of checking account pricing, terms and policies, reference your Business Pricing Information or Business Essentials® Pricing Information and YDAA disclosure. This document can be obtained by contacting a U.S. Bank branch or calling 800.872.2657.
Bonus will be reported as interest earned on IRS Form 1099-INT and recipient is responsible for any applicable taxes. Current U.S. Bank employees are not eligible. U.S. Bank reserves the right to withdraw this offer at any time without notice. Member FDIC.
Platinum Business Checking account - $900 Bonus
Promo code Q4AFL24 MUST be used when opening a U.S. Bank Silver, Platinum, or Business Essentials (Available in AZ, NV, CO, NM, OH, IN, KY and TN) Business Checking account. Limit of one Business Checking bonus per business. A $100 minimum deposit is required to open one of the referenced accounts.
Earn your $900 Business Checking bonus by opening a new U.S. Bank Platinum Business Checking account between 10/01/2024 and 1/15/2025. You must make deposit(s) of at least $30,000 in new money within 30 days of account opening and thereafter maintain a daily balance of at least $30,000 until the 60th day after account opening.
New money is considered money that is new to U.S. Bank. Funds must come from outside U.S Bank and cannot be transferred from another U.S. Bank product or a U.S. Bank Affiliate. Checking account fees (e.g., monthly maintenance, paper statement fee, etc.) could reduce the qualifying daily balance, therefore you must make deposit(s) to cover the fees to maintain the daily balance during the qualifying period to be awarded the bonus. Refer to the Business Pricing Information or Business Essentials® Pricing Information Document for a list of fees.
The business checking bonus will be deposited into your new eligible U.S. Bank Business Checking account within 30 days following the last calendar day of the month you complete all of the offer requirements, as long as the account is open and has a positive available balance.
Offer may not be combined with any other business checking account bonus offers. Existing customers (businesses) with a business checking account or customers (businesses) who had an account in the last 12 months, do not qualify.
All regular account-opening procedures apply. For a comprehensive list of checking account pricing, terms and policies, reference your Business Pricing Information or Business Essentials® Pricing Information and YDAA disclosure. This document can be obtained by contacting a U.S. Bank branch or calling 800.872.2657.
Bonus will be reported as interest earned on IRS Form 1099-INT and recipient is responsible for any applicable taxes. Current U.S. Bank employees are not eligible. U.S. Bank reserves the right to withdraw this offer at any time without notice. Member FDIC.
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. 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 - Up to $450 Bonus
Earn up to $450 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 deposits(s) totaling $2,000 to $4,999.99 to earn $250, $5,000 to $7,999.99 to earn $350 or $8,000 or more to earn $450.
Fund your new account within 30 days to start qualifying activities. Offer may not be available if you are an existing U.S. Bank customer or live outside of the U.S. Bank footprint.
Chase Total Checking® - $300 Bonus
- New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
- With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs.
- 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 - $300 Bonus Offer
- The $300 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 01/31/2025.
- To qualify, open a new eligible 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 eligible account within 90 days of account opening. Bank of America Advantage SafeBalance Banking® for Family Banking accounts are not eligible for this offer.
- Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- *A Qualifying Direct Deposit is a direct deposit of regular monthly income – such as your salary, pension or Social Security benefits, which are made by your employer or other payer – using account and routing numbers that you provide to them.
- Bank of America, N.A. Member FDIC.
Discover® Online Savings - $200 Cash Bonus
To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code CY924 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers, including co-branded, or affinity accounts. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 03/13/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding your Account, see FAQs on Discover.com/Bank. See advertiser website for full details.
CIT Bank Platinum Savings - 4.35% APY
- 4.35% APY with a balance of $5,000 or more
- 0.25% APY with a balance of less than $5,000
- $100 minimum opening deposit
- No monthly maintenance fee
- Member FDIC
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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