Bank of America, Citigroup weigh new cards with 10% rate

Published Fri, Jan 23, 2026 · 06:51 AM

[NEW YORK] Bank of America and Citigroup are exploring options they could offer up as an olive branch to satisfy US President Donald Trump’s demand to cap credit card interest rates at 10 per cent for one year.

Both banks are separately mulling offering cards with a 10 per cent rate as one potential solution, according to sources familiar with the matter who asked not to be identified, citing private information.

Representatives for Bank of America and Citigroup declined to comment.

Earlier this week, Trump said that he would ask Congress to implement the proposal, giving the financial firms more clarity about what exact path he’s pursuing. Bank executives have decried the cap, saying it will cause lenders to have to pull credit lines for consumers. JPMorgan Chase CEO Jamie Dimon said a cap would spell “economic disaster” for the US.

Lawmakers have taken aim at card interest rates, often hovering above 20 per cent in recent years, as one way to relieve some financial pressures on consumers. One study from Vanderbilt University said a 10 per cent cap would lead to at least US$100 billion in annual customer savings.

Some bank executives have publicly said that they agree with Trump’s focus on affordability, and the latest options they are mulling are one way to potentially work with the administration in its effort to lower costs for consumers.

National Economic Council Director Kevin Hassett had previously floated the idea that lenders might voluntarily offer new “Trump cards” and said the administration was in talks with the big banks.

Last week, Bilt unveiled three new credit cards with rates capped at 10 per cent for one year, with that rate only applying to new purchases.

Offering new products would be an easier path for banks to comply with Trump’s demands, rather than reworking the terms and conditions on existing cards. Plus, issuers count on potential interest income when they are determining what kind of credit limit and rewards to offer on a given card, so changing the annual percentage rate (APR) for a card would likely force them to alter the product’s other properties.

With a 10 per cent interest rate, the new cards from Bank of America and Citigroup would appeal to consumers who tend to carry a balance, although the banks likely would not be able to offer the extensive rewards or high limits that cards with higher APRs can offer. Many issuers, including Bank of America and Citigroup, already offer introductory rates for consumers as low as 0 per cent for a period of time.  

Bank of America shares were up about 1.2 per cent on Thursday (Jan 22) at 1.51 pm in New York trading, while Citigroup climbed 1.9 per cent. Shares of certain payment companies and issuers also rose, with American Express rising about 2.4 per cent and Capital One Financial increasing 2.5 per cent.

On Thursday, Bank of America chief executive officer Brian Moynihan said a 10 per cent cap would slow consumer spending, but noted that the bank has been talking to the administration about it.

“We are working hard,” Moynihan said on Thursday. “We are trying to come up with solutions.” BLOOMBERG