Consumer complaint received 2023-08-01
Company: U.S. BANCORP
State: CA
Product: Checking or savings account
Sub-product: Savings account
Issue: Managing an account
Sub-issue: Fee problem

Complaint:
I opened an Elite Money Market Savings Account with US Bank on XX/XX/23 because they stated that they would pay 4.5 % interest if I had more than XXXX deposited in the account. I had approximately XXXX in a treasury bond mutual fund at XXXX XXXX that was paying about the same amount, and since the savings account was with US Bank, where I also had a checking account, I figured it would be more convenient to just move the money to this savings account and earn approximately the same amount of interest. I had the money in the savings account for approximately 2 months, during which time I verified that I was getting paid interest at 4.5 % on the money. At the end of the third month, I noticed that I was paid less interest, despite having more money in the account and the fed funds rate having been increased during that time. I did some research and determined that I was paid at a 3.45 % rate during the third month ( XXXX ). I checked the terms of the agreement and didn't see anything about the rate decreasing after the first couple of months. I also checked online and determined that the promotion was still active on the US Bank website. I called US Bank and they gave me a variety of explanations about why I wasn't getting the 4.5 %. This included telling me that I didn't sign up for the 4.5 % rate, an explanation which was provably false because I was paid at that rate for the first two months. Eventually they told me that I signed up for the 4.5 % promotion, but that promotion had been ended and an identical promotion had been put in its place. Thus, my promotion ended and the rate decreased, while it appeared as if nothing had changed. They did not provide me with any notice that my rate had changed and instead took these actions in such a way that I believe they were trying to avoid having the consumers notice the change. I told US Bank that I thought this was a deceptive business practice and that I was going to pull my money out of the account and close it. I will put my money back in the mutual fund, where I won't be subject to the fund owner trying to trick me into providing me less interest. I later went into a US Bank branch to move my money out of the savings account and the customer service specialist told me that the 4.5 % rate was still going on and that I didn't have to close it. I explained to her that she was misinformed and that US Bank was cycling people out of the promotional rate and then restarting an identical promotion and that she could check my rate if she didn't believe me. She checked the rate and didn't understand why it wasn't 4.5 %. I told her not to worry about it and to just move the money and close the account. So, even US Bank 's own employees didn't understand the functioning of this financial instrument, or the method by which US Bank is providing customers with less than the advertised 4.5 % rate.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation