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Many credit cards offer cash back on daily spending or points you can use to book travel. But what if you could use credit card rewards to save for your future?
The Fidelity® Rewards Visa Signature® Credit Card offers cash back on everyday purchases and lets you deposit rewards directly into your Fidelity account. Whether you’re saving for retirement college, or just looking to grow your wealth, the Fidelity Rewards Visa can help you get there faster.
In this review, we’ll tell you everything you need to know about this cash back card, including benefits, limitations, and alternatives.
| Key takeaway: The Fidelity Rewards Visa is best for those who want to use their credit card rewards to boost their long-term savings and investment goals, like growing their retirement fund or college savings account. |
Features
- Earn unlimited 2% cash back on all purchases
- No annual fee or foreign transaction fees
- Deposit rewards into eligible Fidelity accounts, including retirement and college savings plans
- Access to Visa Signature benefits like travel perks and protection
- No sign-up bonus
How the Fidelity Rewards Visa works
The Fidelity Rewards Visa works like most other cash back credit cards. You earn a flat 2% cash back on all purchases, with no caps or categories to keep track of.
But this card stands out because it encourages you to invest your rewards. Cash back is automatically deposited into an eligible Fidelity account — which could be a brokerage account, retirement account, or 529 college savings plan.
Instead of letting your cash back sit in your account, you can use it to buy stocks, bonds, or mutual funds, which can help your money grow over time.
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Rewards program
The Fidelity Rewards Visa offers a flat 2% cash back on all purchases, one of the highest rates for a no annual fee credit card.
There are no categories or spending caps to worry about, either. That means you can earn rewards on everything from groceries and gas to travel and online shopping.
But the rewards don’t stop there. If you’re an existing Fidelity Wealth Management customer, you can boost your cash back earnings even further. You could earn up to 3% cash back on all purchases depending on how much you have invested. Here’s how it breaks down:
- 2.25% cash back for customers with $250,000 to $1 million in eligible assets
- 2.50% cash back for customers with $1 million to $2 million in eligible assets
- 3% cash back for customers with over $2 million in eligible assets
This tiered rewards structure incentivizes loyal Fidelity customers to make the most of their everyday spending.
Plus, rewards are automatically deposited into your eligible Fidelity account. You don’t have to worry about remembering to redeem them or jumping through hoops to get your money.
Redeeming rewards
Another feature that sets the Fidelity Rewards Visa apart from other cash back cards is its unique redemption options. To maximize the value of your rewards, you can deposit them into an eligible Fidelity account, including:
- Brokerage account
- Cash management account
- 529 college savings plan
- Health savings account
- Charitable Giving Account
- Retirement account
- Fidelity Go account
You can deposit rewards into one account or divide them among up to five qualifying accounts. You can also exchange your rewards for a statement credit, gift card, merchandise, or travel, but the redemption value will vary.
Sign-up bonus and fees
Unlike other cards, the Fidelity Rewards Visa doesn’t offer a sign-up bonus. There’s also no introductory 0% APR offer — a common feature of many other cash back cards.
On the other hand, the Fidelity Rewards Visa doesn’t charge an annual fee. This means you can keep more of your rewards and won’t have to worry about whether you’re earning enough to justify the cost of the card.
If you travel abroad, you’ll appreciate that the Fidelity Rewards Visa doesn’t charge foreign transaction fees. This can save you significant money compared to other cards that charge 3% or more for purchases made outside the U.S.
The card’s APR will vary with the market and is based on the Prime Rate. As of April 2024, the APR is as follows (See rates and fees).
- For purchases and balance transfers, the APR is 19.24%
- For cash advances, the APR is 29.24%
While this is lower than other comparable cards — for example, the SoFi credit card — it’s still smart to pay your balance in full and use your card responsibly to avoid interest charges.
Visa Signature benefits
The Fidelity credit card has access to all the benefits of the Visa Signature network. Some notable perks include:
- Visa Signature Concierge: Get 24/7 assistance with travel planning, dining reservations, event tickets, and more.
- Luxury Hotel Collection: Enjoy exclusive benefits at over 900 luxury hotels worldwide, such as complimentary room upgrades, late check-out, and more.
- Travel protections: Access a wide range of emergency services when you’re away from home, including medical referral assistance, legal referral assistance, and more.
- Warranty protection: Extend the manufacturer’s warranty on eligible purchases for up to an additional year.
- Purchase protection: Protect your new purchases against damage or theft for up to 90 days from the date of purchase.
Drawbacks and limitations
While the Fidelity Rewards Visa has a lot of great benefits, there are also some drawbacks to consider.
- No sign-up bonus or introductory 0% APR offer: Many competing cash back cards offer sign-up bonuses worth hundreds of dollars. Others offer a 0% APR period on purchases and balance transfers for new cardholders. The lack of these incentives may make the Fidelity Rewards Visa less appealing for individuals who prioritize short-term rewards or need to transfer a balance.
- Limited redemption flexibility: This card’s unique reward redemption options can also be a drawback for some consumers. To maximize your rewards, you must redeem them by depositing them into an eligible Fidelity account. If you prefer different rewards or don’t have a Fidelity account, the redemption options may be limited.
- Designed for excellent credit: You may not qualify for the card if you have a lower credit score or a limited credit history. It’s a good idea to check your credit score to see if you qualify before applying.
- Lack of category bonuses: Some cash back cards offer higher reward rates on specific spending categories like groceries, dining, or travel. If most of your spending falls into these categories, you might be able to earn more rewards with a card that offers targeted category bonuses.
Who is the Fidelity Rewards Visa right for?
Are you someone who can delay gratification?
There are many cards offering immediate rewards, like cash back to offset your balance or points you can use to book a flight. The Fidelity Rewards Visa is different.
To redeem your rewards at full value, you need to apply them to an eligible Fidelity account. This is ideal if you are looking to boost your retirement nest egg but not if you’re looking to tally up airline miles for your next trip.
The Fidelity Rewards Visa is an excellent choice for someone who:
- Prioritizes long-term planning: If you’re focused on saving for retirement, college, or building your investment portfolio, this card can help you turn your everyday purchases into meaningful contributions towards your goals.
- Wants simplicity: If you prefer a straightforward rewards structure without the hassle of tracking categories or activating bonuses, this card’s flat 2% cash back on all purchases is a great fit.
- Don’t want to pay an annual fee: For those who want to earn rewards without the added cost of an annual fee, the Fidelity Rewards Visa is a solid choice.
- Already has a Fidelity account: If you’re already a Fidelity customer, this card seamlessly integrates with your existing accounts, making it easy to manage your rewards and investments in one place.
Alternatives to the Fidelity Rewards Visa
If you’re not convinced that the Fidelity Rewards Visa is the best fit for you, don’t worry. Plenty of alternative cash back cards on the market offer solid rewards with no annual fee. Let’s take a closer look at some of the top contenders.
Fidelity Rewards Visa vs. Citi Double Cash Card
The Citi Double Cash® Card is one of the best cash back cards on the market, and for good reason.
This card offers unlimited 2% cash back on all purchases — 1% when you buy and another 1% when you pay your bill. This structure encourages smart card use by incentivizing you to pay off your balance in full each month.
The Double Cash Card also offers a $200 sign-up bonus after spending $1,500 on purchases in the first six months. The card has generous intro APR offer, making it an attractive option for those looking to pay off existing credit card debt.
Fidelity Rewards Visa vs. Chase Freedom Unlimited
The Chase Freedom Unlimited® is another strong contender in the cash back credit card market contender. This card offers a tiered rewards structure, providing 5% cash back on travel purchased through Chase Travel, 3% cash back on dining and drugstore purchases, and 1.5% cash back on all other purchases.
Fidelity Rewards Visa vs. Capital One Quicksilver Cash Rewards Credit Card
The Capital One Quicksilver Cash Rewards Credit Card might be the perfect fit if you prefer a simple, no-fuss rewards program. This card offers unlimited 1.5% cash back on all purchases, with no categories to track or activate.
New cardholders can earn a one-time $200 cash bonus after spending $500 on purchases within the first three months. The Quicksilver Cash Rewards card also provides a fairly lengthy 0% introductory APR on purchases and balance transfers.
The bottom line
The Fidelity Rewards Visa is a standout choice for those who want to align their credit card rewards with their long-term financial goals.
With unlimited 2% cash back on all purchases, no annual fee, and unique redemption options, this card offers a solid combination of benefits.
It’s important to consider your financial situation and goals before applying for any credit card. If you’re not already a Fidelity customer or don’t want to invest your rewards, you may be better off with a different cash back card. And if you’re looking for a sign-up bonus or intro APR offer, you’ll need to look elsewhere.
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.