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This article was last updated Sep 09, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
Savvy consumers with an eye on the future will like the ability to turn credit card rewards into retirement or college savings using the Fidelity® Rewards Visa Signature® Card.
The annual fee is $0, and cardholders earn unlimited 2% cash back on everyday purchases. Rewards can be deposited into up to five eligible Fidelity accounts, even a family member’s or friend’s account.
If your investments aren’t with Fidelity, you might be better off with a different flat-rate cashback card, such as the Citi® Double Cash Card – 18 month BT offer. In this review, we look at the Fidelity® Rewards Visa Signature® Card in detail to help you decide if it’s the right credit card for your wallet.
- Fidelity® Rewards Visa Signature® Card pros
- Fidelity® Rewards Visa Signature® Card cons
- Compare it with the Citi® Double Cash Card
- Is the Fidelity® Rewards Visa Signature® Card right for you?
Fidelity® Rewards Visa Signature® Card pros
Rewards. Unlimited 2% cash back on everyday purchases. For those who don’t want to pay attention to earning varying rates in different categories, or dislike having to activate new rewards categories every quarter, a flat-rate cashback card such as this one offers welcome simplicity.
Though the card is marketed as earning cash back, rewards actually come in the form of points. There’s no cap on what you can earn, and points don’t expire as long as your account is open. Ways to redeem points earned with the Fidelity® Rewards Visa Signature® Card include:
- As deposits to a Fidelity account
- In the form of statement credits
- For travel
- To purchase merchandise
- For gift cards
If you choose to have your rewards deposited into a Fidelity account, you have the option of splitting them among up to five different accounts. Eligible types of Fidelity accounts include:
- Brokerage account
- Fidelity Cash Management Account
- Fidelity-managed 529 College Savings plan
- Retirement account
- Fidelity Go account
- Fidelity Charitable Giving Account
- Fidelity HSA
Fidelity retirement accounts include Traditional IRAs (and rollover IRAs), Roth IRAs and SEP IRAs. Be aware that Fidelity’s website includes a disclaimer, saying, “The ability to contribute to an IRA or 529 college savings plan account is subject to IRS rules and specific program policies, including those on eligibility and annual and maximum contribution limits.”
All redemption methods require a minimum of 2,500 points.
Opportunity for boosted rewards rate. Those with enough cash on hand to join Fidelity as a Wealth Management client can earn more cash back when using the Fidelity® Rewards Visa Signature® Card. There are three Fidelity Rewards+ tiers based on how much you invest:
- Gold — with $250,000 to $1 million in eligible assets, earn 2.25% cash back.
- Platinum — with $1 million to $2 million in eligible assets, earn 2.5% cash back.
- Platinum Plus — with more than $2 million in eligible assets, earn 3% cash back.
Sign-up bonus. Receive 10,000 Bonus Points—which equals $100 cash back, when deposited into an eligible Fidelity account—after you make at least $1,000 in eligible purchases within the first 90 days of account opening. Know that some competing cards offer higher sign-up bonuses.
No annual fee. Because the Fidelity® Rewards Visa Signature® Card’s annual fee is $0, all rewards you earn are net cash back as long as you don’t roll over a balance and incur interest charges.
Additional benefits include:
- Purchase security against damage or theft for 90 days from the date of purchase. There’s a maximum of $500 per claim and $50,000 per cardholder.
- Extended warranty on eligible manufacturer’s warranties of three years or less. Doubles the length of the original warranty up to a maximum of an extra year of coverage.
- Auto rental collision damage waiver (provides secondary coverage).
- Travel and emergency assistance. This benefit provides help such as referrals to legal and medical services, assistance filling prescriptions and locating interpreters. Note that while there’s no charge for the benefit, you may incur costs for goods or services.
- Lost luggage reimbursement of up to $3,000 per trip.
- Travel accident insurance for accidental loss of life, limb, sight, speech or hearing.
- Roadside dispatch when you call 1-800-847-2869.
- Visa Signature Concierge to assist with travel, dining, entertainment and more.
Fidelity® Rewards Visa Signature® Card cons
Rewards not always worth 2% back. Each point is worth 1 cent when redeemed into a Fidelity account, meaning this credit card’s earning rate of 2 points per $1 spent equals 2% cash back. However, you’ll get a value of about half that when you choose other redemption options.
Foreign transaction fee. When traveling outside the United States, be aware that the Fidelity® Rewards Visa Signature® Card charges a fee of 1% of each foreign transaction of each foreign transaction. While this is lower than the standard 3% foreign transaction fee some other credit cards charge, a better option during your travels would be to rather carry a credit card with no foreign transaction fee at all.
Compare it with the Citi® Double Cash Card
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
0% for 18 months on Balance Transfers
13.99% – 23.99% (Variable)
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
- To earn cash back, pay at least the minimum due on time.
- Balance Transfer Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% – 23.99%, based on your creditworthiness.
- Balance Transfers do not earn cash back.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater.
- The standard variable APR for Citi Flex Plan is 13.99% – 23.99% based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
See additional details for Citi® Double Cash Card – 18 month BT offer
One of the most popular 2% cashback cards around is the Citi® Double Cash Card . Let’s take a look at how it compares to the Fidelity® Rewards Visa Signature® Card:
Fidelity® Rewards Visa Signature® Card vs. Citi® Double Cash Card
|Fidelity® Rewards Visa Signature® Card||Citi® Double Cash Card|
|Rewards||Unlimited 2% cash back on everyday purchases.||Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.|
|Sign-up bonus||Receive 10,000 Bonus Points—which equals $100 cash back, when deposited into an eligible Fidelity account—after you make at least $1,000 in eligible purchases within the first 90 days of account opening.||No bonus|
|Balance transfer offer||N/A||Intro APR of 0% for 18 months on Balance Transfers, then an APR of 13.99% – 23.99% (variable) will apply|
|Regular purchase APR||16.24% variable||13.99% – 23.99% (variable)|
The key difference between how the two cards earn rewards is that when using the Fidelity® Rewards Visa Signature® Card, you earn the full 2 points per $1 spent after spending the money. Plus, the Citi® Double Cash Card offers an extended balance transfer offer with an introductory APR of 0% for 18 months on balance transfers, after which an APR of 13.99% – 23.99% (variable) will apply.
However, the Citi® Double Cash Card earns half when you spend, half when you pay back what you put on the card. Note that you must make at least the minimum payment each month to be able to earn the second 1% back — paying late will cause that cash back to be forfeited.
Ways to redeem cash back with the Citi® Double Cash Card include:
- As a statement credit
- Via direct deposit to a bank account
- As a check in the mail
- By converting it to ThankYou Points
Is the Fidelity® Rewards Visa Signature® Card right for you?
Consumers looking to feather their nest egg or set their kids up for success with a college savings account will find value in the Fidelity® Rewards Visa Signature® Card. Plus, the card offers helpful benefits, such as purchase security, extended warranty and lost luggage reimbursement.
However, the lower redemption value for options like statement credits and gift cards reduces this card’s flexibility. If you want to redeem rewards in any way other than depositing them into a Fidelity account, you’ll be better off with a card like the Citi® Double Cash Card .
If neither of these cards seems like quite the right fit for your wallet, see our recommendations for the best cashback credit cards on the market.