U.S. Bank Brokerage Account Review for 2024
U.S. Bancorp brokerage review. U.S. Bank Investments fees, rating, online stock trading
and IRA account minimums, and mutual fund offering.
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U.S. Bancorp Investments Overview
If you already use U.S. Bank for your checking and savings accounts, you might want to explore their investment options. U.S. Bancorp Investments provides both automated and self-managed investment accounts.
U.S. Bancorp Investments offers both self-managed and investment-advisory accounts. You can manage these accounts fully online or opt for full service, which includes access to a personal financial planner and costs more.
Online accounts offer fewer services but are much cheaper. You can open a low-cost advisory or self-managed account online. The advisory option includes a low-cost robo-advisor. This review will focus on the online, affordable option.
Is U.S. Bank Brokerage Safe?
U.S. Bancorp Investments is officially registered with both FINRA and the SEC as a broker-dealer and investment advisor. It has been registered since 1986, has 25 disclosures over 37 years, and operates in all 50 states plus D.C. and Puerto Rico.
As part of securities regulations, it’s also insured by SIPC, which covers both self-directed and managed accounts up to certain limits.
U.S. Bancorp Automated Investor
Automated Investor is U.S. Bancorp's robo-advisor, offering ETF trading at a low cost of 0.24% annually, much less than its full-service managed accounts, which can be as high as 2.05%. The minimum balance to start is $1,000.
There are no trading commissions within the automated account, and services like automatic rebalancing and tax-loss harvesting are included at no extra cost.
ETFs in the program include:
Vanguard FTSE Developed Markets – VEA
iShares Russell Mid-cap – IWR
SPDR Portfolio Aggregate Bond – SPAB
Dividends from these ETFs are reinvested automatically.
You can open various account types with the robo service, including different IRA options. Only IRAs can have beneficiaries added.
U.S. Bank Self-Directed Investing
For those who prefer to manage their investments directly, U.S. Bancorp Investments offers self-directed trading. This option includes a broader range of ETFs and other investment choices such as:
- Stocks
- Over 10,000 mutual funds
- Options
- Bonds
This account type does involve trading fees: $4.95 for stocks, ETFs, and options, plus an additional $1 per option contract. Mutual fund transactions cost $25.
Currently, U.S. Bancorp Investments offers 100 free equity trades per year for self-directed clients who opt for paperless statements and open a U.S. Bank Smartly Checking account, which may have a monthly fee.
The self-directed account has a $50 annual fee, waived for households with assets over $250k.
The same account types available in the robo service are also available in the self-directed plan.
FDIC-Sweep Program
Cash not invested in a self-managed account can be automatically transferred to U.S. Bank and insured by the FDIC. This sweep program uses only one bank, so the maximum insurance coverage is $250k, and any existing deposits at U.S. Bank are counted against this limit. Interest is earned on these funds.
Margin
Self-directed accounts can also use margin trading with competitive rates between 9.75% and 7.75%.
Digital Tools
U.S. Bancorp Investments provides digital tools for account management via its mobile app and website. These tools include a goal-setting feature, a risk assessment quiz, and a tool for analyzing investment scenarios.
Additional Services
Fractional Shares: Only whole shares can be traded; mutual funds can be purchased in any dollar amount.
DRIP Availability: Automatic dividend reinvestment is available.
Initial Public Offerings: No IPO services are offered.
Extended Hours Trading: Trading is limited to regular market hours.
Periodic Mutual Fund Investing: Recurring mutual fund purchases are possible.
U.S. Bank Investments Review Judgement
U.S. Bancorp Investments offers a decent online trading service, though its $50 annual fee for self-directed accounts isn't very competitive. However, its robo-advisor fee of 0.24% is attractive. The FDIC-sweep program is limited to one bank, restricting additional FDIC coverage. While trading in a self-directed account can become costly, the robo service offers good value.
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Updated on 7/19/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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