Fidelity® Rewards Visa Signature® Card Review

Cash Back Card

Fidelity® Rewards Visa Signature® Card

Top Features

• Rewards
• Earn unlimited 2% cash back into an eligible Fidelity account
• Welcome Bonus
• Earn a $100 bonus when you spend $1,000 within the first 90 days
• Annual Fee
• $0

5.0

Credit Score: Excellent

Terms and Limitations Apply

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CardName Essentials

Many cash back cards have similar redemption structures. It’s typical for points to be redeemed for statement credits, travel, and gift cards. The CardName is different — it breaks the mold of what you’d expect from a rewards credit card. And different is always appreciated. The CardName doles out 2% cash back for every single purchase. You can make savings automatic with this card by depositing your cash back rewards into an eligible Fidelity® account like a 401K or 529. If ‘different’ is not your thing, don’t tune out yet. There are other redeeming options you’ll enjoy: get two points for every dollar spent which can be applied toward air travel, hotels, car rentals and gift certificates.

Overview of the best features:

• No annual fee
• $100 bonus offer after you spend $1,000 within the first 90 days.
• Earn 2% cash back on every purchase
• Earn 2 points for every dollar on retail purchases (points can be redeemed for air travel, gift certificates, cash, hotels and car rentals)
• Deposit rewards into an eligible Fidelity account

What Our Editors Like Most About the CardName

Fidelity® gives cardholders two options for redeeming their rewards: automatically deposit them into an eligible Fidelity account as cash, or redeem them through the WorldPoints program for air travel, gift certificates, cash, car rentals or hotel stays. Since there’s no limit on the amount of rewards you can earn, the best way to use the CardName is for everyday purchases like gas, dining, groceries and monthly household expenses — if you don’t incur an additional fees for say, unpaid balances, you’ll see your points grow quickly. If you make $3,000 in purchases on a monthly basis, for example, you’ll get $60 cash back to deposit into your Fidelity® account. Eligible accounts include a Fidelity® Cash Management Account, a Fidelity-managed 529 account, retirement or brokerage account. Deposit all your rewards into one account or split them among up to five Fidelity® accounts. Once you use your points in a savings account compound interest will continue to grow your rewards. When funds are placed into an eligible investment or 529 college savings account, you’ll get tax-deferred benefits, too. The CardName has no annual fee, which is always a welcomed feature. It does charge a 1% foreign transaction fee, which is lower than the industry standard of 3%, but still not ideal. Lastly, the card is chip-enabled so you can use it at a variety of locations abroad without stress. 

Potential Downsides of the CardName

The most obvious drawback of the CardName is that it doesn’t offer the same level of flexibility as other cash back cards. Your two redemption options are a Fidelity® account or the WorldPoints program, which may not offer the most value for your spending. For example if you need 25,000 points for coach airfare, which has a maximum dollar value of $400, you’d have to spend at least $1,670 a month for the entire year to have enough rewards for a $400 coach ticket. Compare that to the sign-up bonuses other cards offer and you’ll see, Fidelity® cardholders have to put in a lot more effort to get their rewards. Consumers who aren’t fans of delayed gratification might detest the idea of depositing their money into a Fidelity® account. Clearly it’s smart to start saving for retirement as early as possible, however, some consumers like the flexibility of using their cash back rewards whenever and however they choose — rather than waiting until they’re 70 ½ to reap these benefits from points set aside in a retirement account. If you don’t already have an account with Fidelity®, your best option is a cash management account, which has no monthly maintenance fee and doesn’t require a minimum balance. Otherwise, you’re looking at commission and trading fees of $7.95 per trade that will eat into any rewards you get.

How the CardName Compares to Other Rewards Cards

CardName vs. CardName

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(Citi is a CardRatings.com advertiser)

The Citi Double Cash® Card features 1% cash back when you make a purchase and another 1% cash back as you pay your balance (at least the minimum amount due, on time). Neither card has an annual fee, but Citi®’s intro offer of 0% APR for 18 months on balance transfers could be a nice perk if you’re looking to pay off an existing balance from another card (after the intro period, expect an APR of RegAPR). Citi®’s redemption options are more flexible, too. Cardholders can redeem cash back for gift cards, checks or statement credits. If you want cash in your hand — or in your account — the Citi Double Cash® Card is a better option.  

Who Should Get This Card?

If you value financial goals like retirement by 65 or incurring less student debt and also understand that financial milestones often take time and patience and strategy to set yourself up for long-term success, the CardName could be right for you. If you already have a Fidelity account and are looking for a no-fuss way to add to your investment or retirement savings, you should consider this card.