Credit cards are often seen as a bad thing for your finances. After all, many Americans use their credit cards to overspend and incur debt. However, there are a small number of credit cards that can actually help you save money.
The Fidelity® Rewards Visa Signature® Credit Card, issued by Elan Financial Services, offers you reward points that can be redeemed for cash back into your eligible Fidelity account. And as you’ll see, this is a great way to use your credit card rewards to contribute to your retirement, college savings or even a charitable giving account.
What Is the Fidelity® Rewards Visa Signature® Credit Card?
This is a rewards card that’s cobranded with Fidelity Investments, one of the largest financial advisory firms in the United States. This credit card can be used anywhere Visa is accepted, and it offers reward points that can be redeemed for cash back into a qualifying Fidelity Investments account. The reward points earned is the equivalent of 2% of the amount spent, which is one of the highest rates of cash back offered.
Cash back is deposited into a qualifying Fidelity Investments account including:
Fidelity® Rewards Visa Signature® Features
|Rewards for Spending||Unlimited 2% cash back on all purchases|
|Foreign Transaction Fees||1%|
|Travel Benefits||Auto rental collision damage waiver
Emergency cash and card replacement
Travel and emergency assistance services
Lost luggage reimbursement
Travel accident insurance
|Shopping Benefits||24-hour Visa Signature® Concierge service
Visa Signature® privileges, including travel, dining, sporting, entertainment and shopping offers and savings
|Mobile Wallet Compatibility||Apple Pay, Google Pay, Samsung Pay, Microsoft Wallet|
|Contactless Payment Compatibility||No|
|Customer Service||Live Chat; Phone: 24/7|
Who Is the Fidelity® Rewards Visa Signature® Good For?
The Fidelity® Rewards Visa Signature® credit card is best for people who are more interested in saving than earning goodies such as travel miles. It’s also great for people with Fidelity investment and robo-advisor accounts.
How Does the Fidelity® Rewards Visa Signature® Card Compare?
The Fidelity® Rewards Visa Signature® card can best be compared to the Chase Freedom card. Neither one charges an annual fee. However, whereas the Fidelity® Rewards Visa Signature® card is best suited to investors and other folks with Fidelity investing accounts, the Chase Freedom card has more of a traditional rewards program that can be redeemed for gift cards and merchandise, rather than just through automatic deposits into an account.
The Fidelity® Rewards Visa Signature® Card Bonuses and Benefits
Frankly, this isn’t a credit card that you receive to earn a signup bonus or to enjoy the most valuable travel perks. But as a part of the Visa Signature® program, it does offer some decent travel and shopping benefits. For example, when renting a car, you’ll receive auto rental collision damage waiver coverage, as with most U.S. credit cards. And if your wallet is lost or stolen, this card offers you emergency cash and card replacement services as well as general travel and emergency assistance. Should your luggage be stolen, you’ll get reimbursed for your losses. Also, you’ll receive travel accident insurance for trips you purchase with your card.
When shopping, you’ll have access to the Visa Signature® Concierge service, which can help you with travel reservations, booking event tickets and making dining reservations. The Visa Signature® program also includes several shopping offers and discounts.
Fidelity® Rewards Visa Signature® Fees
This card has relatively few fees. For example, there’s no annual fee and its foreign transaction fee is just 1% of the amount purchased. In contrast, most credit cards still impose a 3% foreign transaction fee on charges processed outside of the United States.
The balance transfer fee is 3% of the amount transferred, with a minimum of $5, and the same fees apply to cash advances. The late payment fee is up to $39 and the returned payment fee is $35.
Signing Up for Fidelity® Rewards Visa Signature®
You can sign up for the Fidelity® Rewards Visa Signature® card by applying online once you’ve logged into your Fidelity® Rewards account. If you don’t have an account, or if you prefer to call, you can apply by calling 888-325-6196.
Fidelity® Rewards Visa Signature® Mobile
The Fidelity® Rewards Visa Signature® card offers access to the Fidelity Mobile app for iPhone and Android mobile phone users. Features include seeing posted and pending transactions in real time and the ability to pay your credit card bill. You can also use the mobile app to set up autopay and to add travel notifications.
Fidelity® Rewards Visa Signature® Pros and Cons
- Great Rate of Return — Earning 2% cash back on all purchases with no limits is a very strong rate of return for a cash back rewards card.
- Rewards Are Deposited Into an Investment Account — Most reward credit card users will simply spend the cash they get back, but with this card, your rewards are automatically saved and invested.
- Low Fees — There’s no annual fee for this card, and the foreign transaction fee is lower than most other cards.
- No Signup Bonus — Most competitive reward credit cards offer new applicants a signup bonus, but this card doesn’t.
- Must Be a Fidelity® Rewards Customer — The reason this card offers such a strong rate of cash back is because Fidelity expects to acquire new customers. If you already have your investments with another company, then you’d have to move them to Fidelity to take advantage of this offer.
- Minimal Shopping Benefits and Travel Insurance — This card lacks some of the benefits that you’ll find on other premium reward cards, such as purchase protection and extended warranty coverage.
When you avoid interest charges by paying your balance in full, then you can look for a rewards credit card that offers you the most value per dollar spent. The Fidelity® Rewards Visa Signature® offers you a very high rate of cash back, as well as the chance to redeem your rewards directly into an investment account, so you can’t immediately spend it. By offering a great rate of cash back and by allowing you to use your credit card as an investment vehicle, the Fidelity® Rewards Visa Signature® credit card is a great choice for those who want to use their credit card to contribute towards their investments.