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Fidelity's 2% Cash Back American Express Credit Card


Fidelity Investments introduced a new cash back credit card called The Fidelity Retirement Rewards American Express Card. It adds an extra 0.50% on the cash back rewards as compared to their 1.50% cash back Rewards Visa Signature Card. Here's a list of the features as described at Fidelity's page:
  • Turn 2% of purchases into a contribution for your Fidelity IRA
  • No limits on cash rewards
  • No annual fee
  • You'll earn 2 points for each $1 you spend on purchases
  • Reach 5,000 points after you make $2,500 in purchases and $50 can be automatically swept into your Fidelity IRA as a current year contribution or other Fidelity account
  • Enjoy more flexibility with additional WorldPoints rewards options, including travel, merchandise, travel, and other rewards
Even though it's pitched as a way to help increase your IRA contributions, it does allow the cash back money to be swept into accounts other than the IRA. This includes the non-retirement Fidelity brokerage account and MySmartCash account (see post). This is described in the credit card's terms and conditions.

It was just last week when Charles Schwab came out with their 2% cash back credit card (see post). It's nice to see more competition with these credit cards.

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  |     |   Comment #1
I would be really nice if they upped the Visa Signature rewards to 2% as well. Have any CS reps said this might happen?
  |     |   Comment #2
If all of these cards are issued by FIA, I suspect that you could just call in and convert to one of the newer cards. Your number might change, but that's a minor inconvenience.
  |     |   Comment #3
According to this WSJ article, Fidelity will be increasing cash-back for the Investment and College cards to 2% in early 2009. Hopefully this will applie to current as well as new cardholders.
  |     |   Comment #4
Schwab is offering a 2% cash back Visa credit card, with no limits, no minimums, no fees, and unlike Fidelity, it'll deposit the cash back into a Schwab brokerage account. You can withdraw it and use it without any penalty, unlike Fidelity's deposit into an IRA.
  |     |   Comment #5
Fidelity does NOT require that the reward payments be put into a Fidelity IRA account. I'm having mine put into my brokerage account. I can chose to leave it there, deposit it to my IRA or transfer it to my checking account.
  |     |   Comment #6
If you clear your credit card balance each month, a card that rewards you for spending is well worth considering. The American Express Platinum Cashback card pays 5 per cent in the first three months up to a maximum spend – this means you could earn £100 just for using your card.

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