Review of the New Fidelity Credit Card – 2% Cash Back

Recently, Fidelity announced the release of its new Fidelity® Rewards Visa Signature® Card. It replaces the Fidelity American Express card that had become very popular. Th new cash-back credit card option may be the flexible rewards card you’ve been looking for.

Fidelity Credit Card Review–The Basics

Fidelity Rewards VisaThis easy-to-use cash back card offers unlimited 2% cash back on every purchase, every day. With no categories to worry about, this card is simple to use for racking up cash-back rewards. You’ll know exactly what you earn each time you swipe.

Plus, if you have an eligible Fidelity investment account, your cash-back rewards can be automatically deposited into the account.

Earning and Redeeming Rewards

To earn rewards, all you have to do is use this card. The 2% cash back is unlimited and won’t expire at any time. Redeeming rewards is easy too, and you’ve got a couple of options available.

Redeeming for Savings

Fidelity Visa Credit CardOne redemption option is to have your rewards automatically deposited into one Fidelity account, or even to divide your rewards amount up to five Fidelity accounts. Eligible accounts include a brokerage account, a Cash Management Account, a Fidelity-managed 529 College Savings Plan, or a retirement account.

Related: See our list of the 8 best cash back credit cards of 2016

You can choose ahead of time how to split up your rewards among these accounts, and you can even deposit rewards into a loved one’s account. For instance, you can put rewards into your child’s 529 College Savings Plan, your brokerage account, and your spouse’s retirement account. As long as the accounts are eligible, your rewards can be split up to five ways and automatically deposited each month.

When you contribute to an IRA or 529 plan, your contributions will count as current-year contributions. If you’ve already met your maximum contributions for the year, you’ll be liable for any additional contribution taxes. So, it’s important to keep tabs on your Fidelity investment accounts if you opt for this card.

Once you’ve maxed out your investments for the year, re-allocate your automatic 2% cash back contributions so that you’re not running into any additional taxes and fees.

If you’re worried about issues like these, you can just allow your points to accumulate throughout the year, and then take your contributions on demand. Once you’ve accrued at least 5,000 points, you can log into your online account to move the cash back funds to the appropriate Fidelity accounts.

One caveat: You can’t use your points to open a new Fidelity account. You’ll have to open the account first and meet the applicable minimum investment amount. Your points won’t transfer to an account that’s not adequately funded.

Redeeming for Points

As with many credit cards today, the Fidelity® Rewards Visa Signature® card offers points-based rewards, too. You’ll earn points at the same 2% rate. You can then redeem those points for travel, merchandise, gift cards, or statement credit.

Again, these points don’t have a cap nor do they ever expire.

Other Benefits

One interesting new benefit that we’ll likely see more of in the future is that this card is enabled for Apple Pay, Samsung Pay, and Android Pay. This can take some of the worry out of using your credit card in stores or online, as it can protect your credit card information from merchants and hackers.

For even more security, the card automatically comes with EMV chip technology, helping to protect you from in-store fraud when you make purchases.

It also includes:

  • $0 annual fee so you don’t have to worry about out-earning a fee with this card.
  • Zero fraud liability so that you’re not responsible for any unauthorized purchases, so long as you report them in a timely fashion.
  • Travel and shopping offers including hotel and transportation discounts, best rate guarantees, beverage credits, and special offers.
  • Visa Signature Concierge which gives you access to 24-hour assistance with booking travel, booking tickets for concerts, and more.

Other Rules and Fees

As with all credit cards, this one includes certain rates and fees that apply. The fees for this card include:

  • 3% cash advance fee with a minimum of $5.
  • 3% convenience check fee with a $5 minimum.
  • 3% balance transfer fee with a $5 minimum and a $2 minimum interest charge whenever interest is due.
  • 1% foreign transaction fee for all transactions in foreign currency.
  • Variable APR of 14.24%, depending on creditworthiness.

2% Cash Back

Very few cash back credit cards offer 2% back on every purchase. While the Fidelity Visa is one of them, there are many people who do not have a Fidelity account or don’t want their cash back transferred to a Fidelity account. For these folks, here are several 2% cash back alternatives:

The fact that this card offers unlimited 2% cash back on all purchases makes it a good option for everyday spending. If you’re using another card to catch a higher cash-back amount on certain categories, this one could fill in on other spending categories, allowing you to earn as much cash back as possible.

Being able to invest your cash back is a great deal, too. Just be sure that you check with your tax advisor to see if your cash back contributions to investment accounts could be taxable. And be sure to stay on top of your account maximum contributions, so that you don’t have to worry about over-contributing and paying subsequent taxes.

With its balance transfer fees and foreign transaction fees, this isn’t a great card for a balance transfer nor for the frequent traveler to use overseas. But it’s a good everyday-use, domestic card.

If you’ve already got a Fidelity account that would qualify for this credit card, consider using it as your everyday use credit card. Earning 2% cash back even on utilities payments, car payments, and other everyday bills could really save you some extra money in your retirement or 529 account by the end of the year!

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10 Responses to “Review of the New Fidelity Credit Card – 2% Cash Back”

  1. Glad I found this site for help when I have time to shop for a new credit card, as getting frustrated with the ones I have. What I want for both business & personal are cards with multiple numbers so you can leave the “auto-pay” card home & not worry about it getting lost. You can also track individual family member charges more easily but these cards are hard to find.

  2. Howard

    I believe that Fidelity used to automatically debit your cash management account to pay the monthly Visa bill. Do you know if that is still the case? Or can I pay the charges from another, unrelated checking account?

  3. Ron Crum

    I got this card as soon as it was issued a year or two ago. Yep, I got my 2% month-after-month deposited directly into my account at Fidelity. That aspect of the card worked great.

    What was not so great? Almost every month, the Card Company would decline the card at random merchants. They declined small purchases at the Walgreens 1-mile from our house all the time, a Wlagreens we have been using for 25 years!!! Same for the local Albertson’s grocery store. And at the local ExxonMobil gas station, Walmart and a slew of other nearby merchants my wife and I have used for years. My credit rating exceeds 820 so it is not me. We pay our bills in advance every month. The card company said they were “detecting fraud.” It was horribly embarrassing for my wife each time they declined the card. Our merchants assumed we were deadbeats and had not paid our bills. And that is what it felt like as we stood at checkout and had the card rejected.

    This weekend my wife and I were in Austin visiting with a friend. He happened to have the same card! And, like us, he and his wife had both had the card rejected a dozen times or more. They planned to cancel the card this week.

    My advice? Don’t bother with this card unless you are a glutton for punishment and enjoy being randomly embarrassed at various merchants you have been using for years near your home.

    I canceled the card last November and went with the CitiBank Double Cash card where you get 1% when you charge an item and 1% more when you pay your bill. Experience so far has been outstanding. We are very pleased and glad to be rid of the Fidelity disaster.

    • Oh how I wish I had read this before getting this card. The card we were using had 1.5% cashback so I thought this was a great step-up. My wife and I both have credit scores in excess of 800. We received the card about 2-3 weeks ago – with a $25,000 credit limit – and I promptly switched over all my recurring bills to this card. Since then, the card has been rejected at Mobil, a pizza restaurant and just today I realized our monthly payment for almost $2,000 to my daughter’s university was rejected. The rejected college payment comes with an extra $50 penalty from the university. My wife called the credit card processor and they said these transactions were rejected as suspected fraud and this could happen often until their software becomes familiar with our spending patterns. I don’t know how it can ever become familiar with out spending patterns if they reject our charges in the first place. They do not give any warnings via telephone or email that your recurring payments (Comcast, Verizon, college tuition) are rejected – you find out the hard way. They had no way to make this better – we just need to anticipate that it will keep happening. We did not get a $25,000 limit card to have it continually declined. I have transferred all my recurring payments back to our Quicksilver from Capital One and will be cancelling the Fidelity Visa as soon as the charges that weren’t declined have all cleared.

      Do not get this card.

  4. William Dietch

    In connection with its switch to the Fidelity Visa card from American Express, Fidelity failed to inform its customers that its Full View service (akin to Mint and similar aggregating services) would not interface with the new card’s transaction history until at least the 3rd quarter of 2017. This undisclosed shortcoming constitutes a major inconvenience for Fidelity customer who use its rewards card and also reliy on its Full View services for budgeting and expense tracking. It’s a puzzling failure for Fidlity which continues to tout both Full View and its Visa rewards card without disclosing this substantial failure.

  5. The switch from Amex to Visa has completely changed the redemption experience of the Fidelity Card. You should AVOID this card, if you are used to getting the 2% full value of the redemption, in a way other than into a Fidelity account!!!!!!
    Having been a huge advocate for the 2% on everything rate on this card….I could have been the spokesperson for this card, prior when the AMEX card redemption experience was through world points. Worlds points was a top shelf servicer of the Fidelity Amex card. Great options tiered to incent you to wait and redeem at the 25,000 point level.
    Now that this card is with VISA, the redemption experience is terrible!!!!
    I’ve had the Fidelity Amex card in may wallet for 6-7 years, and always waited to get to the 25,000 point threshold to redeem for the max value at $250 worth of a large array of gas cards, or amazon gift cards.
    The first time I log into the Fidelity VISA version, and you notice the new version of this credit card halves your redemption value. My 25,000 points are worth $125 !!!
    I feel like someone stole $125 bucks from me !!!
    DO NOT GET THIS CARD.
    So many better options out there!!!
    This card is now garbage!!!!!

    • Fidelty Card Holder

      So what are the ‘better options’ ? 2% back on everything as long as it goes into a Fidelity account sounds like a a great deal. What other cards pay 2% cash back that are worth my time and effort?

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