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
Your annual fee is $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
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 $100 cash bonus after you spend $500 on purchases within 3 months of approval. 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.