US Bancorp Investment account for US Bank 4% CC cashback

[indexfundfan]

I opened a self-directed US Bancorp Investment account to hold assets so as to qualify for the US Bank 4% cashback credit card

viewtopic.php?p=8235881

In addition to an ETF, I also put some money into GABXX, a money market fund. I had the fund set to reinvest dividends, the most recent one of which is shown below



The way I interpret the activity is that the dividend was distributed on 1/29 but only reinvested on 1/31? Is USBI skimming off two days, not reinvesting the dividends immediately? Or is my interpretation wrong?

Is the same happening for people who holds VUSXX?

[sycamore]

Your experience seems to align with jeffyscott's (see bolding below). Here's a post from the main US Bank 4% thread:

I transferred FSKAX shares in-kind from a Fidelity Roth IRA to a new US Bank Roth IRA last month. After the transfer a US Bank phone rep informed me dividend reinvestment was enabled for these shares with no action needed on my part. They were correct, as the dividend that was paid a few days ago automatically reinvested.

I can now report that our mutual fund distributions were also reinvested. Like you, called after transferring in and told they were already set to reinvest.

They were very slow about it, the distribution was declared on the 27th and reinvestment date was Dec. 30th, but as of late last night the account still had only the original number of shares. The additional shares and reinvestment activity finally showed up this morning.

It seems mutual fund investors are having better luck with this , based on a few reports of ETF dividends not being reinvested after USBI had claimed they were set to do so.

[jeffyscott]

In my case, it was a stock mutual fund distribution and, while the reinvestment didn’t show up for a few days, the reinvestment price was correct. It'll be more difficult to determine if the late reporting for a money market resulted in a loss of interest.

I've had Schwab be late but they always show it with an "as of" date. Like: 1/2/25 dividend reinvest $100, as of 12/29/24.

USBI doesn't show any "as of" date online. I'll soon see what the January statement shows.

[indexfundfan]

In my case, it was a stock mutual fund distribution and, while the reinvestment didn’t show up for a few days, the reinvestment price was correct. It'll be more difficult to determine if the late reporting for a money market resulted in a loss of interest.

I've had Schwab be late but they always show it with an "as of" date. Like: 1/2/25 dividend reinvest $100, as of 12/29/24.

USBI doesn't show any "as of" date online. I'll soon see what the January statement shows.

Yes, for a stock dividend, it is easy to check if it has been reinvested correctly.

For GABXX, the activity on 1/31 made me think that USBI held the dividend for two days before reinvesting.

[sycamore]

Back when I had a Vanguard brokerage account, there was a Vanguard web page that showed me how much dividends I earned on a particular day. This could be used to see if money was invested (or reinvested) on a certain day or not. Maybe US Bank has some similar feature?

[indexfundfan]

Back when I had a Vanguard brokerage account, there was a Vanguard web page that showed me how much dividends I earned on a particular day. This could be used to see if money was invested (or reinvested) on a certain day or not. Maybe US Bank has some similar feature?

Some MMFs published the daily dividend, unfortunately I don't think Gabelli does it

https://www.gabelli.com/funds/money_markets/404

[jeffyscott]

USBI doesn't show any "as of" date online. I'll soon see what the January statement shows.

Following up, there is nothing different on the statement. It shows trade date and settlement date of 1/2/25, but the price for the reinvestment is not what the price was on 1/2/25, instead it is the correct reinvest price which was from 12/30/24.

[indexfundfan]

USBI doesn't show any "as of" date online. I'll soon see what the January statement shows.

Following up, there is nothing different on the statement. It shows trade date and settlement date of 1/2/25, but the price for the reinvestment is not what the price was on 1/2/25, instead it is the correct reinvest price which was from 12/30/24.

Your stock mutual fund distribution looks to be reinvested correctly since the reinvest price is correct. The statement reporting could be improved though.

For GABXX, the statement shows both the reinvestment trade and settlement dates to be 1/31. I know from previously holding GABXX at Etrade that the dividends for GABXX are NOT distributed on the last day of the month, usually it is at least one date prior. But I now think that USBI is probably not skimming off two days to delay reinvesting the dividends; it is just how their system is set up to display reinvestments.

Anyone holding VUSXX at USBI? I believe Vanguard distributes the dividends on the last day of the month. I am curious how the dividend reinvestment shows up for you?

PS. Vanguard is cutting the ER of VUSXX to 0.07%, undercutting GABXX's 0.08% by one basis point.

[jeffyscott]

The statement reporting could be improved though.

Certainly, that or else improve the timeliness of crediting the new shares.

In our case the Dec statement showed a closing balance with post distribution share price but the pre-distribution number of shares. The fund had significant distributions, the share price went down about 14% with the distribution. Thus we have a Dec statement showing an ending balance that is about 14% less than what it actually was.