*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.
This article was last updated Sep 04, 2018. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
If you’re one of Fidelity Investments’ 27 million customers, there’s a credit card that could help boost your retirement savings or kid’s college fund. The Fidelity® Rewards Visa Signature® Card costs nothing to carry but will deposit 2% cash back into your Fidelity account*, a nice way to feather your nest egg.
Not a Fidelity Investments customer? You’ll probably want to consider alternatives like the Citi® Double Cash Card – 18 month BT offer, which offers better rewards in travel, dining, gas and groceries.
In this review, we’ll describe how the Fidelity® Rewards Visa Signature® Card works and whether you might be better off looking elsewhere.
Where the Fidelity® Rewards Visa Signature® Card stands out in its category
Free account. Even if you’re not a Fidelity Investments customer, you can still take advantage of this card though you will need to open a Fidelity® Cash Management Account. The account comes with no fees or minimum balances, reimbursement for ATM fees, a free debit card, check writing, bill pay and mobile check deposit.
Sign-up bonus. New cardmembers 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.
Good cashback rewards. You earn Unlimited 2% cash back on everyday purchases.
No limits. You can deposit your unlimited cash back into any eligible Fidelity account and your points won’t expire.
Where the Fidelity® Rewards Visa Signature® Card falls short in its category
*Members only. Top rewards go to those who deposit their cash back into their cash management account or another Fidelity account like a traditional IRA, Roth IRA, rollover IRA, SEP IRA, Fidelity Charitable® Giving Account, Fidelity HSA® and Fidelity-managed 529 College Savings Plan accounts.
No deposit? Lower rate. If you decide to use your cash back for things like travel options, merchandise, gift cards and/or statement credits, the redemption rate drops to 1%. There are far too many credit cards on the market that offer far better cash back in the top spending categories.
Big spend, small reward. You must spend $2,500 in order to earn a $50 deposit into your eligible Fidelity account. Again, the cashback rate will be lower if you choose not to deposit into your account.
Additional card benefits
- Purchase security
- Extended warranty
- Auto rental collision damage waiver
- Travel and emergency assistance
- Lost luggage reimbursement
- Travel accident insurance
- Roadside dispatch
- Visa Signature® Concierge
- Terms and certain restrictions may apply
Compare it with the Citi® Double Cash Card – 18 month BT offer
Rather have the cash instead? Consider the Citi® Double Cash Card – 18 month BT offer instead. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. The cash you earn can be redeemed for checks, statement credits or gift cards.
The card comes with far fewer travel and purchase perks than the Fidelity® Rewards Visa Signature® Card. Perks you do get are Citi Private Pass® for special access to buy tickets to thousands of events a year and Citi Concierge.
|Fidelity® Rewards Visa Signature® Card||Citi® Double Cash Card – 18 month BT offer|
|Regular Purchase APR||16.24% Variable||13.99% – 23.99% (Variable)|
|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|
|Foreign Transaction Fee||1% of each foreign transaction||3%|
The bottom line
The questions you need to answer when it comes to these two cards are: Do you want your cash back now or later? And, are the rewards robust enough? If you want your cash back at your fingertips, the truth is there are plenty of cards on the market that will give you that and more lucrative sign-up bonuses. Frequent travelers may be better off with a card that offers 2 points per $1 spent and gives you more flexibility when redeeming them.
If you have any type of Fidelity account, the Fidelity® Rewards Visa Signature® Card is a good option because of its Unlimited 2% cash back on everyday purchases. But if you want the higher cashback rewards, they can only be deposited into a Fidelity account. The rewards drop if you want to redeem it for anything else.
The Citi® Double Cash Card – 18 month BT offer has fewer perks than the Fidelity® Rewards Visa Signature® Card, but it’s much simpler to use, since you don’t have to sign up for a banking or investment account to get your rewards. You earn your rewards every time you use the card and get them back as a check or card statement credit. This is the card to get if you don’t want to open up a new banking or investment account and want to keep things simple.