US Bank FlexPerks Travel Rewards Visa Signature and American Express Review (before June 2016)
Updated August 27, 2016. Please find our new review for the FlexPerks products after June 2016.
This review covers two versions of US Bank FlexPerks Travel Rewards - Visa Signature and American Express, since they are almost identical except for a few differences.
The Facts
The Math
FlexPerks TR Visa vs. FlexPerks TR Amex: The two cards are almost identical except that obviously they use different payment networks and that Amex offers 2x on dining. Visa is more widely accepted than Amex, especially in foreign countries. On the other hand, the Amex has better rewards since it offers dining as a bonus category, which may be big for some consumers. The bottom line is that you may choose one over the other depending on your own spending and travel pattern.
US Bank FlexPerks TR vs. Fidelity Visa: First of all, in reality it is almost impossible to achieve 2 points per point when redeeming FlexPerks points and let's assume that you can realistically achieve 1.6 cents per point. If you spend $24K a year, the 3,500 bonus points more than cancel out the annual fee; FlexPerks TR can seriously give Fidelity Amex a hard time since it returns 3.2% on the 2x categories and 1.6% on everything else. In order to equalize 2% cash back from Fidelity, assuming your spending on 2x categories is $A while your total spending is $B, you need 3.2% x $A + 1.6% x ($B - $A) = 2% x $B, i.e., A/B = 1/4, meaning that you bonus category spending needs to exceed 1/4 of your total spending.
The Conclusion
As long as your spending on the bonus categories exceeds a certain percentage of your total spending, FlexPerks TR will beat a 2% cashback cards such as Fidelity Visa. It is up to you which FlexPerks TR to get: if you value Visa's wider acceptance and/or have large foreign purchases then go with the Visa Signature; if you have large spending on dining then the American Express will probably make more sense. US Bank FlexPerks is now rated as one of the Best Credit Cards for Rewards.
This review covers two versions of US Bank FlexPerks Travel Rewards - Visa Signature and American Express, since they are almost identical except for a few differences.
The Facts
- Annual Fee: 1st year free, $49/year thereafter
- Signup Bonus: 20,000 points after spending $3,500 within 4 months of new account opening. Historical best bonus of either card is 20,000 points.
- Rewards: both cards offer 3x on charitable donations, 2x on cellphone plus one category you spend most each month from gas, groceries, or airfare, 1x everywhere else. In addition, you will receive 3,500 bonus points for $24K annual spending. The Amex version offers 2x on dining.
- Best Use of FlexPerks points: Like rewards program by other banks, US Bank's FlexPerks points can be redeemed for merchandise, gift cards, and cash at 1 cent per point. However, the best redemption rate is for airfare through a search engine powered by Travelocity, which returns up to 2 cents per point. The redemption chart looks like: 20K = up to $400, 30K = up to $600, 40K = up to $800, 50K = up to $1,000, 70K = up to $1,400, 100K = up to $2,000, and so on. The trick is obviously try to keep your ticket value as close to the cut points ($400, $600, $800, etc.) as possible but not to exceed them. An interesting add-on feature for the airfare redemption is that with each airplane ticket booked this way, you will receive reimbursement for airline incidentals like check bag fee, onboard meals, etc., up to $25.
- Other Benefits: No foreign transaction fees with an embedded EMV chip.
- Other Facts: FlexPerks TR Visa has been around since 2009, and in late 2014, US Bank introduced the Amex version, which adds 2x on dining. At the same time, zero foreign transaction fees feature was added while the complimentary National Car Rental elite status and Hideaways Aficionado® Club Silver Membership were removed.
The Math
FlexPerks TR Visa vs. FlexPerks TR Amex: The two cards are almost identical except that obviously they use different payment networks and that Amex offers 2x on dining. Visa is more widely accepted than Amex, especially in foreign countries. On the other hand, the Amex has better rewards since it offers dining as a bonus category, which may be big for some consumers. The bottom line is that you may choose one over the other depending on your own spending and travel pattern.
US Bank FlexPerks TR vs. Fidelity Visa: First of all, in reality it is almost impossible to achieve 2 points per point when redeeming FlexPerks points and let's assume that you can realistically achieve 1.6 cents per point. If you spend $24K a year, the 3,500 bonus points more than cancel out the annual fee; FlexPerks TR can seriously give Fidelity Amex a hard time since it returns 3.2% on the 2x categories and 1.6% on everything else. In order to equalize 2% cash back from Fidelity, assuming your spending on 2x categories is $A while your total spending is $B, you need 3.2% x $A + 1.6% x ($B - $A) = 2% x $B, i.e., A/B = 1/4, meaning that you bonus category spending needs to exceed 1/4 of your total spending.
The Conclusion
As long as your spending on the bonus categories exceeds a certain percentage of your total spending, FlexPerks TR will beat a 2% cashback cards such as Fidelity Visa. It is up to you which FlexPerks TR to get: if you value Visa's wider acceptance and/or have large foreign purchases then go with the Visa Signature; if you have large spending on dining then the American Express will probably make more sense. US Bank FlexPerks is now rated as one of the Best Credit Cards for Rewards.