PORTLAND, Ore. -- U.S. Bank, the principal subsidiary of U.S. Bancorp, announced reductions, Monday in its gold credit card rate to 13.4% and classic card rate to 15.4% under a new, variable formula.

Customers will be given a choice between a quarterly rate tied to movements in the prime, or a fixed annual rate.

The variable rate will initially save most customers 3.0 to 3.5 percentage points, said Richard W. Eichhorn, executive vice president of U.S. Bank.

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