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Schwab Visa Cash Back Credit Card: Future Of 2% Cash Back?

Wednesday, September 22, 2010 - 8:37 PM
Clark Howard has some useful warnings and tips for Schwab Visa credit card customers. The 2% cash back may not last much longer.
As of Oct. 1, 2010, Bank of America will completely take over operation of the card through their FIA subsidiary. [...] Bank of America will be free to change the terms and conditions as they see fit come October.

Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
1. Thursday, September 23, 2010 - 9:28 AM
Three days ago, when I received notification about this change, I spoke with a customer service representative, and they indicated that AT THIS TIME (emphasis mine) there is no expectation for a change in the 2% cash back program.  However, this is certainly something to keep an eye on, and be prepared for -- perhaps by applying for another cash back card if you don't already have one.

One alternative is the Fidelity Retirement Rewards American Express credit card, from which you can deposit 2% back (after you've spent at least $2,500 and earned $50 in rewards) into a retirement account (IRA, Roth, etc.) or a 529 college savings account.  Link: Fidelity Investments

Another alternative is the Fidelity Investment Visa credit card, from which you can deposit 1.5% back (2% for spending amounts above $15,000 per year) (after you've spent at least $3,333.34 and earned $50 in rewards) into your Fidelity investment account.  Link: Fidelity Investments

Another alternative is the 2% cash back Visa DEBIT card from Perkstreet Financial along with associated free checking account (using The Bancorp Bank) so long as you maintain a $5,000 balance.  You do have the hassle of retrieving your cash back in the form of a Visa card, so it's certainly not as convenient as direct deposit into your account, as with Schwab.  In addition, there is a $4.50 monthly inactivity fee, so if you do choose this option, be sure to use the checking account (debit card use does count for this) at least once per month.  Link: Debit Card Rewards | PerkStreet Financial

ravrav36 posts since
Apr 21, 2010
Rep Points: 148
2. Thursday, September 23, 2010 - 8:28 PM
I have both the Fido 1.5% card and the Fido 529 card (2% toward tuition) as backup for CS 2% card.  Not sure about what the cash back percentage is for the Fido 529 card right now.

The credit card offers will be worse by the day, just as the reward checking/savings interest rate will be lower by the day.

The best strategy is to enjoy to the utmost while they last and do not sweat it when it is gone:D
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427