Fidelity Rewards Visa Review: Earn 2% Cash Back for Your Nest Egg
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4.3
This can be a terrific everyday card, as long as you already do business with Fidelity and don't mind socking away your rewards in a qualifying investment account.
Pros
Cardholders with eligible Fidelity accounts get a high rewards rate
No annual fee
Earns same rewards rate on all purchases
Cons
Rewards must be deposited into Fidelity account to get full value
Requires excellent credit
No 0% APR period
Compare to Other Cards
Annual fee$0 | Annual fee$0 | Annual fee$0 |
Regular APR19.99%-28.74% Variable APR | ||
Intro APR0% intro APR on Balance Transfers for 18 months | Intro APR0% intro APR for 15 months on purchases and balance transfers | Intro APR0% intro APR on Balance Transfers for 15 months |
Recommended Credit Score |
Recommended Credit Score |
Recommended Credit Score |
Detailed review: Fidelity® Rewards Visa Signature® Card
If saving money for future goals is a priority for you, the rewards that come with the Fidelity® Rewards Visa Signature® Card are hard to beat. As long as you don't need those rewards immediately and instead park them in an eligible Fidelity account, you'll earn 2% cash back on every purchase.
That flat rewards rate is right up there with the best products on the market and can make this card, issued by Elan Financial Services, a top-notch option.
However, if you don't already have or want a Fidelity account and you'd rather spend your rewards as soon as they're earned, you can find other credit cards that offer 2% back on everything. Just keep in mind those options may have their own downsides or hoops to jump through, such as membership requirements, reward caps or annual fees.
Fidelity® Rewards Visa Signature® Card: Basics
Card type: Rewards.
Annual fee: $0.
Sign-up bonus: None.
Ongoing rewards: 2 points for every eligible dollar spent, which equals 2% cash back when deposited into an eligible Fidelity account to which your card is linked. Qualifying Fidelity accounts include:
Traditional IRA.
Roth IRA.
Rollover IRA.
Simplified employee pension IRA.
Charitable Giving Account.
Health savings account.
Brokerage account.
Cash management account.
Fidelity Go investment management account.
Fidelity-managed 529 college savings plan accounts.
Note that Fidelity 401(k) plans do not qualify.
APR: The ongoing APR is 13.99% Variable.
Foreign transaction fee: Up to 1% of each transaction.
Other benefits: Visa Signature benefits, which includes concierge service, travel, dining, sporting, entertainment and shopping offers.
Benefits and perks
Generous rewards rate
Earning 2% back on every purchase is hard to beat among no-annual-fee flat-rate cards. And with the Fidelity® Rewards Visa Signature® Card — unlike cards with rotating or tiered rewards — you don’t have to spend time "opting in" to bonus categories, keeping track of a quarterly calendar or remembering what purchases earn the most back.
Automated savings
For consumers already saving for retirement, college or other goals through Fidelity accounts, the Fidelity® Rewards Visa Signature® Card offers an easy way to contribute consistently without having to think about it. There's also a variety of funding options within the Fidelity ecosystem. You'll be able to deposit your rewards into one eligible Fidelity account or divide them up among several (up to five qualifying accounts). You can also use your rewards to fund a loved one's account.
No annual fee
Since the annual fee is $0, you don’t have to worry about whether you're earning enough rewards to offset the yearly cost of card ownership.
Drawbacks and considerations
You must be a Fidelity customer
To earn 2% back on everything with the Fidelity® Rewards Visa Signature® Card, you must deposit rewards into an eligible Fidelity account. You can opt for other redemptions, including travel and statement credits, but points are worth less when you choose those options.
You can't use your credit card rewards as an initial deposit on a new Fidelity account. Rewards have to be deposited into an existing account. If you don't already have an account with Fidelity, you'll have to open one before you can apply for the card.
Other cards offer similar rewards rates without such a requirement. The Citi® Double Cash Card, for example, earns 2% back on all purchases: 1% back when you buy, and 1% back when you pay it off. You don't need an existing relationship with Citi, and you can use that money for whatever you like — including contributing to a retirement account of some kind, if you wish. The card's annual fee is $0.
You can't spend rewards as they're earned
Socking away your rewards in an investment account may make financial sense for you. But many people look to credit card rewards to help defray the costs of everyday purchases like groceries or gas. If that's you, you might be happier with a card that pays higher rewards on those kinds of purchases and allows you to take your rewards as a statement credit, such as the Blue Cash Everyday® Card from American Express. It earns 3% cash back on up to $6,000 a year in spending in each of three categories: U.S. supermarkets, U.S. gas stations and U.S. online retail purchases. Other purchases earn 1%. Terms apply (see rates and fees).
Requires excellent credit
The Fidelity® Rewards Visa Signature® Card is marketed to people with excellent credit — meaning FICO scores of 720 and up. If your credit is good but not excellent, you'll need to build a stronger credit history before you apply. Or you could consider the aforementioned Citi® Double Cash Card, which earns a comparable rewards rate (see above) and is available for a wider range of applicants. The annual fee is $0.
This card earns 2% back on all purchases: 1% back when you buy, and 1% back when you pay it off. You don't need a relationship with Citi and can spend your rewards as you earn them. The annual fee is $0.
How to decide if it's right for you
If you already have a Fidelity account that you’re using to save for retirement or college, then augmenting those savings with a Fidelity® Rewards Visa Signature® Card could be a smart move. That’s especially the case if you enjoy straightforward rewards that don’t require much thought or management.
But if you're not a Fidelity customer and you prefer to have essentially immediate access to your rewards, you’re better off looking elsewhere.
To find out how this card stacks up to the competition, see NerdWallet's list of best credit cards.
