Fidelity Rewards Visa Review: Earn 2% Cash Back for Your Nest Egg

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.

» MORE: How to earn 2% back in credit card rewards on every purchase

Key features of the Fidelity® Rewards Visa Signature® Card

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.

Other redemption options (for a lower value) include travel, merchandise, gift cards or statement credits.

APR: The ongoing APR is 13.99% Variable.

Foreign transaction fee: Up to 1% of each transaction.

Other benefits: Visa Signature benefits, which include concierge service, travel, dining, sporting, entertainment and shopping offers, and travel and emergency assistance.

» MORE: NerdWallet’s best cash-back credit cards

Why you might want the Fidelity® Rewards Visa Signature® Card

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.

Why you might want a different card

You don't do business with fidelity

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.

Other cards offer similar rewards rates without such a requirement. The Citi® Double Cash Card – 18 month BT offer, 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 cash out starting at $25 in rewards, then 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 want to spend rewards as soon 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% back at U.S. supermarkets on up to $6,000 spent per year (then 1%); 2% back at U.S. gas stations and select U.S. department stores; and 1% back on all other purchases. Terms apply.

You don't have 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 PayPal Cashback Mastercard®, which earns an unlimited 2% cash back on purchases and accepts applicants with good credit (FICO scores of at least 690). You must have a PayPal account to apply, however. The annual fee is $0.

Is the Fidelity® Rewards Visa Signature® Card 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.