Are you looking for an easy way to top up your investment or retirement account? The Fidelity Rewards credit card could be exactly what you are looking for.
the Fidelity® Rewards Visa Signature® card offers the opportunity to earn unlimited cashback on everyday purchases and have this money transferred directly to your Fidelity investment account.
This card rewards you with 2% on every purchase you make, so it fulfills the exact bill that money expert Clark Howard recommends for most consumers looking for their first rewards credit card.
In this article, Team Clark will take an in-depth look at the Fidelity offering and compare it to the top competitors in this category.
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Team Clark has spent time rating the credit card market across several categories, including the best cashback credit cards. We compared the Fidelity Rewards Visa Signature Card with the best cards in this market segment. And we’ve found it’s a viable choice – thanks to its steady cashback rewards and the fact that it doesn’t have an annual fee.
When deciding if this card is right for you, please use this review in conjunction with Clark Howards 7 Rules for Using Credit Cards.
What is the Fidelity Rewards Visa Signature Card?
The Fidelity Rewards Visa Signature Card is a no annual fee card that offers unlimited 2% cashback on all transactions.
It’s similar to popular fixed rate cashback cards like the Citi Double Cash and Paypal Cashback Mastercard, but the benefit is that your cashback rewards are automatically deposited into your linked Fidelity investment account. So while you are spending money on everyday purchases, you can also deposit 2% of the purchase price into your IRA (Individual Retirement Account).
You don’t need to have a Fidelity investment account to apply for this card, which is backed by Elan Financial Services, but you are likely best off with the reward structure if you open one in conjunction with this card.
Fidelity Rewards Visa Signature Card: Specifications and Perks
Let’s take a look at the fine print to examine some of the pros and cons of the card.
This cashback rewards program is one of the simplest on the market: you get 2% back on everything you buy with the card. There are no spending categories or award limits, and the awards you earn never expire.
So if you spend $ 1,000 in one billing cycle, you get 2,000 Reward Points: a value of $ 20 in cashback rewards.
This rate of return is among the best in the industry for cash back cards that don’t charge an annual fee, impose a spending limit, or require you to spend within certain categories.
The difference between this card and some other 2% cashback cards on the market is the ability to link it to an investment account.
Fidelity doesn’t require you to use your cashback rewards this way, but it certainly does promote the card as an easy way to increase your investment capital.
Here are the different types of Fidelity Accounts that you can deposit your credit card rewards into:
- Brokerage account
- Fidelity® Cash Management Account
- Fidelity® Managed 529 College Savings Plan
- Pension account (IRA, Roth IRA, etc.)
- Fidelity Go® account
- Fidelity Charitable® Giving Account®
If you find that investment rewards are not your style, there are other ways to redeem the points earned on this card. They include:
- Gift cards
- Credit on credit card statement
- Fan shop
Other benefits for cardholders
- Protection against fraud without liability: If your card is lost or stolen, you are not liable for any unauthorized charges.
- Warranty Manager Service: When making purchases with this credit card, you can double the duration of the manufacturer’s guarantee (up to an additional year). (No longer available after March 31, 21)
- Car rental disclaimer: This card covers damage due to collision or theft to a rental car that is both secured and charged to the credit card. So you can decline the insurance offered at the rental car counter. (No longer available after March 31, 21)
- Travel and emergency services: Through the Visa Signature program, you can contact the number on your card for help coordinating medical, legal, or travel services. As part of the travel benefits on this card, you also have access to the Roadside Dispatching, Travel Accident Insurance and Lost Baggage Reimbursement programs.
- Further advantages of the Visa signature: While staying at a Visa Signature Luxury Hotel Collection hotel, you can access shopping discounts (specialoffers.visa.com) and free food and drink discounts. You’ll also have access to the 24-hour Visa Signature Concierge (800-953-7392) and special access to sports, entertainment and dining events (visa.com/signature).
Here is a quick look at some of the fees with the Fidelity Rewards Visa Signature Card:
- Annual fee: None
- Transfer fee for the credit: 3% of the transfer amount with a minimum of 5 USD
- Cash advance fee: 3% of the amount of each advance with a minimum of $ 5
- Foreign transaction fee: 1% of every transaction
- Late Pay Fee: $ 29 for the first late fee with a penalty of up to $ 40 for the second within six months
Fidelity Rewards Visa Signature Card versus other 2% cashback cards
If you are considering applying for the Fidelity Rewards Visa Signature Card, it is likely due to the 2% cashback bonus.
You have the right idea. Money expert Clark Howard has two 2% cashback cards in his wallet straight: the Citi Double Cash and the Navy Federal cashRewards card. (Clark earns 2% on the Navy Federal Card through a special offer. There is only 1.5% cashback for new customers.)
“It means that everything you buy is essentially reduced by 2%,” says Clark.
Let’s look at all of them with this head-to-head comparison:
|Card properties||Fidelity Rewards Visa Signature||Citi Double Cash||PayPal Cashback Mastercard||Fifth third preferred|
|Standard cash back rate||2%||2% (1% when purchasing, 1% when paying the invoice)||2%||2%|
|Cashback redemption options||Balance on the investment account, trips, goods, gift cards, account statements||Check, bank statement, or credit to linked Citi bank account||PayPal balance||Check, bank statement, linked Fifth Third account or loan|
|Introductory APR offer for new purchases||None||None||None||None|
|Introductory APR offer for credit transfers||None||0% for 18 months||None||None|
|Foreign transaction fee||1%||3% in US dollars per transaction||None||None|
|Phone protection||no||no||no||Yes sir|
|Fully comprehensive insurance for car rentals||Yes sir||no||no||no|
The big takeaways
Here are a few things to consider when making this comparison:
- As you can see, flashy welcome bonuses and APR offers are hard to find in this card category. If this is the type of reward you are looking for, check out our summaries of the Best credit card welcome bonuses or best 0% credit cards.
- If car rental damage insurance is important to you, this card is the best option among the 2% cashback cards. Fidelity is the only card it offers as a standard service.
- if Phone protection Important to you, note that this card is not included. The Fifth Third Card is the only 2% cashback card it offers. (Clark says this is a better way of protecting your cellphone than paying for insurance through your cellular operator.)
- The 1% overseas transaction fee associated with this card isn’t great, but it isn’t the worst in the category either. With the popular Citi Double Cash card, you could end up paying 3%.
- Perhaps the biggest takeaway from this table is that these cards are more similar than they are different. That means there isn’t much incentive to carry more than one or two of these in your wallet. Instead of duplicates from this table, you may want to carry one of the 2% cards and another with you Reward card that gives you more than 2% in categories where you often spend.
Are you considering adding the Fidelity Rewards Visa Signature Card to your wallet? Before making your final decision, let’s review some of the card’s key pros and cons:
Fidelity Rewards Visa Signature Card: Pros and Cons
|Unlimited 2% cashback on all purchases||No welcome bonus offer|
|No annual fee||There is no introductory offer of 0% APR on new purchases or credit transfers|
|Can use premiums to fund investment accounts directly||Some work may be required to set up a Fidelity Investment Account for Automatic Reward Deposits|
Bottom line: If you’re looking for a passive way to add to the amount of money you’re investing, this card could be a good fit in your wallet.
For example, I added this card to my personal wallet to increase my annual Roth IRA contributions. That 2% can add up quickly over the course of a year.
In general, Clark recommends carrying an unlimited 2% cashback card as there is no categorical limit to the rewards you can earn. So if you don’t have one in your wallet already, this is an absolutely great option.
Have you had any experience with the Fidelity Rewards Visa Signature Card? Let us know how you like it in the comments below!