If you think credit card rewards can only be counted in miles and points, it’s time to think again. By picking the right cash-back card and funneling rewards into your savings or investment account, you can build your nest egg as you do your day-to-day spending.
In observance of America Saves Week, the Nerds have picked the top credit cards for savers:
Best overall: Fidelity® Rewards Visa Signature® Card
If you do your saving or investing with Fidelity, the Fidelity® Rewards Visa Signature® Card will pump up your balance fast. With it, you’ll earn an unlimited 2% cash back on all your spending, which can be directly deposited into the Fidelity account of your choice. Eligible accounts include brokerage and retirement accounts, so you could be saving for a richer future every time you swipe.
Your $0 to keep your account open, so you won’t have to worry about yet another expense cutting into your savings.
When it comes to overall value, the Fidelity® Rewards Visa Signature® Card card is tough to beat.
Best for 5% cash back: Chase Freedom®
In recent years, the Chase Freedom® has included restaurants, gas stations and grocery stores among its 5% categories. This makes it easy for nearly every spender saver to cash in.
You have several choices when it comes time to redeem rewards. As a saver, you’ll probably find the option to get a direct cash deposit into your bank account most convenient.
For a quick infusion into your savings, the Chase Freedom® comes with a sign-up bonus: Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening. This card’s annual fee is $0, making it a thrifty (and lucrative) choice.
Best for unlimited cash back: Citi® Double Cash Card – 18 month BT offer
If the Fidelity® Rewards Visa Signature® Card caught your eye but you don’t have a Fidelity account, the Citi® Double Cash Card – 18 month BT offer might be a good fit. It offers 1% cash back when you make your purchases and an additional 1% cash back when you pay them off. There’s no limit to the rewards you can earn, so indirectly, you’ll be saving every time you spend.
Like the Nerds’ other top picks, the Citi® Double Cash Card – 18 month BT offer charges an annual fee of $0. One drawback is that you’ll have to get your cash back as a check if you plan to add it to your savings account; doing a direct deposit isn’t an option. It’s not quite as convenient as other cards, but making a stop at your bank is probably a small concern when you consider the benefits it offers.
Best for unlimited rewards and a signup bonus: Capital One® Quicksilver® Cash Rewards Credit CardCapital One® Quicksilver® Cash Rewards Credit Card, you’ll earn unlimited 1.5% cash back on all of your purchases. Your rewards never expire, and you can redeem them in any amount.
You’ll also score a sign-up bonus with the Capital One® Quicksilver® Cash Rewards Credit Card: One-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening. Its annual fee is $0, and it charges no foreign transaction fees. Again, you’ll have to redeem your rewards in the form of a check to get them into your bank account. Hopefully, you’ll find that extra legwork worthwhile as you watch your savings grow.