Bank of America Considers New Credit Card Capped at 10% Interest
Bank of America is mulling over whether to offer a credit card with interest capped at 10% for a year, a person familiar with the bank's thinking told NBC News.
President Donald Trump recently called for a universal credit card interest rate cap of 10% for one year, and credit card issuers aren't exactly thrilled about it.
Bank of America is also talking with other financial institutions about best practices for lowering costs for consumers, said the person, who was granted anonymity to discuss internal deliberations.
The potential card is just one of several options under discussion as Bank of America, the country's second-largest bank, looks for ways to respond to the affordability crisis. Citigroup is also discussing a credit card with a 10% interest rate, Bloomberg News reported.
Trump Made the Demand
Trump first demanded the one-year interest rate cap in a January 9 Truth Social post.
"We will no longer let the American Public be 'ripped off' by Credit Card Companies that are charging Interest Rates of 20 to 30%, and even more," Trump wrote.
"Effective January 20, 2026, I, as President of the United States, am calling for a one year cap on Credit Card Interest Rates of 10%."
The anniversary of Trump's swearing-in came and went this week without concrete action on interest rates by either the administration or banks.
Experts say it would most likely require an act of Congress to actually restrict how much banks and card issuers can charge for credit.
Banks Aren't Happy
The banking industry warns that any blanket cap on interest rates would make it nearly impossible for card issuers to take on the risk that comes with issuing credit cards to people with low credit scores or no credit. JPMorgan Chase CEO Jamie Dimon called the cap an "economic disaster."
Still, the fact that any big banks are even considering a new card offering in response to Trump's demand shows how much the relationship between the White House and corporate America has shifted since Trump returned to office.
As Trump has launched tirades against various industries, plenty of high-profile CEOs have walked a fine line between trying to placate him and protecting their companies' bottom lines.
A potential 10% interest credit card looks like the latest example of an industry offering an olive branch to the White House, but not the whole tree.
The Fine Print
Many banks and card issuers already offer credit cards with 0% interest for the first year or 18 months after cards are issued. Those offers are typically limited to customers with good credit.
It wasn't clear Thursday how a card with a 10% interest rate would be a better value for customers with good enough credit to qualify for any of the many 0% introductory offers already out there. Bank of America CEO Brian Moynihan said in an interview Thursday with Bloomberg TV that the bank was looking at several ways to address affordability.
As for the blanket 10% interest rate cap Trump appeared to call for, Moynihan warned, "If you actually make this a policy, it can re-allocate credit."
"That will slow down spending, it will slow down credit availability, and that might not be what you're trying to achieve," he said.
So banks are considering a 10% cap card in response to Trump's demand, but they're making it clear they're not happy about it—and they're warning it could backfire.
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