New Fidelity Rewards Visa Credit Card Review: 2% Flat Cash Back

new_usbank_fido_visa_200Updated with new info for both new and existing customers. Fidelity has (mostly) converted their rewards credit card line-up to a single version – a Visa Signature issued by Elan Financial Services (subsidiary of US Bank). For new customers, the new Fidelity® Rewards Visa Signature® Card will receive a flat 2% cash back when directed to an eligible Fidelity Investments account. Here is a different link which includes a $100 bonus after you make at least $1,000 in purchases within the first 90 days. Here are the new card highlights:

  • Unlimited 2% cash back, when redeemed into an eligible Fidelity account.
  • No annual fee.
  • Visa Signature benefits, like Concierge service.
  • Chip-enabled and works with Apple, Android, and Samsung Pay.

Eligible Fidelity accounts. The 2% rewards value applies only to points redeemed for a deposit into the following active Fidelity accounts:

  • Fidelity Cash Management Account
  • Fidelity Brokerage account
  • Fidelity-managed 529 account
  • Fidelity Retirement account (IRA, Roth IRA, SEP-IRA, Rollover IRA)

Rewards value will be less than 2% cash back if you choose to redeem your points for other rewards such as travel options, merchandise, gift cards, and/or a statement credit.

Points redemption details. You can either choose automatic or manual redemption. With automatic redemption, once you reach $50 of rewards (5,000 points from net spending of $2,500), your balance will be automatically swept into your designated Fidelity account (or split between multiple Fidelity accounts if you wish). You can also redeem your points “on demand” either by calling in or online after you reach the same 5,000 point minimum balance.

Previous FIA Cardservices customers. You should have received your new Elan-issued cards by now, and been told what the new rewards structure is. There is no new credit check. Your credit card number will be different, but the credit card history (like age of account) should continue as before on your credit reports. Your existing rewards balance will be moved over. Re-enroll your card for online account management at FidelityRewards.com. Re-enroll your cards for rewards redemption after logging into your account at Fidelity.com / Credit Card Snapshot / Manage Rewards Points. You will need your Fidelity account numbers.

There was (understandably) some angry existing customers when they were told they would only start at 1.5% cash back and not the 2% cash back offered to new customers. Some reps told existing customers that they would have apply for a new card in order to get the 2%. However, it appears that Fidelity has softened that decision. If you call up the number on the back of your card and ask them, they should upgrade you to 2% cash back without hassle. But it won’t happen automatically; you must call.

Commentary. Overall, this move makes complete business sense. They negotiated terms that could offer a Visa card with 2% cash back without any tiers. Fidelity uses this card to encourage customers to keep all their assets within Fidelity-branded accounts. You could theoretically now have your checking account, credit card, brokerage account, IRA, 401(k), all with Fidelity.

Their previous issuer, FIA Cardservices was owned by Bank of America, which is essentially a direct competitor. You could also have a Bank of America checking account, BofA credit card, Merrill Edge brokerage account, and Merrill Lynch wealth management account under their umbrella. In fact, I recently opened up a Merrill Edge account and moved over $100,000 of assets and received (1) 100 free stock trades a month and (2) an effective 2.625% back towards any travel with the Bank of America Travel Rewards card (my review). I pay no annual account fees on either product.

Elan Financial Services is a subsidiary of US Bank, but they are less of a direct competitor. You won’t see “US Bank” mentioned anywhere on this card. Elan quietly co-brands with many other financial institutions (over 1,400) who want a credit card but don’t want to handle the back-end details.

Bottom line. I believe it remains a solid cash back card for existing Fidelity customers (or those willing to open a Fidelity account). As a self-directed investor, I also like to keep my options open. I have this new Fidelity card, but I don’t use it. I use the Bank of America card mentioned above because it offers higher rewards for my situation. I also have (but don’t currently use) the Citi Double Cash card (my review) because it is a similarly solid card with no annual fee (and doesn’t require any companion account).

Why do I have all three? My experience is that good credit cards may stop taking new applicants with no prior notice, but as an existing customer you can often continue to receive grandfathered benefits for a long time. I’ve had some version of this Fidelity co-branded card earning 2% cash back since 2004. They also all have no annual fee.

Citi Prestige Card Review: New 40,000 Point Offer, Feature Changes

Citi ThankYou Prestige Card Art

Our partner Citi has relaunched the Citi Prestige® Card, their premium ThankYou point rewards card. The sign-up bonus is now 40,000 bonus points after $4,000 in purchases made with your card in the first 3 months the account is open. Here are the updated highlights:

  • $250 Air Travel Credit each year
  • Receive a statement credit, up to $100 every 5 years, as reimbursement for your application fee for Global Entry or TSA Pre ?®
  • Complimentary 4th Night for any hotel stay at hotels booked through Citi Prestige® Concierge
  • Earn 40,000 bonus points after $4,000 in purchases made with your card in the first 3 months the account is open.
  • Points are redeemable for a $532 flight on any airline or $400 in gift cards.
  • Transfer points to a variety of travel loyalty programs from airlines to hotels.
  • Earn 3x points on Air Travel and Hotels
  • Earn 2x points on Dining at Restaurants and Entertainment
  • 1 ThankYou® Point per $1 spent on other purchases
  • No Foreign Transaction Fees on Purchases.
  • $450 annual fee, not waived the first year.

What’s different than before? While many features remain, there are a few notable changes from the previous offer.

  • The sign-up bonus was previously 50,000 bonus points after $3,000 in purchases.
  • Citi and American Airlines connection appears to be going away over time. For example, the application does not mention the previous ability to redeem at 1 ThankYou point = 1.6 cents in American Airlines airfare. There is now only the claim that you can redeem 1 ThankYou point = 1.33 cents in airfare from any airline. Thus, 40k ThankYou points are redeemable for a $532 flight on any airline or $400 in gift cards.
  • Existing Citi Prestige cardholders have been told that the ability to obtain complimentary access to American Airlines Admirals Club lounges will be ending July 23, 2017. Free access to the Priority Pass Select program and its affiliated airport lounges will remain.

What’s the same as before?

  • $250 Statement Credit for Air Travel each year. Unlike other cards, airfare counts as well as baggage fees, lounge access, and other incidental purchases. This renews every calendar year, so it can be used to help offset the annual fee every year. Specifically, “This statement credit is an annual benefit available for purchases appearing on your billing statements from December through the following December. Pending transactions that do not post in your December billing cycle will count towards the next year’s Air Travel Credit.”
  • Citi ThankYou points also transfer directly to certain airline mileage programs on a 1:1 basis including Cathay Pacific, EVA Air, Etihad, Flying Blue by Air France and KLM, Singapore Airlines, and Thai Airways.
  • $100 Global Entry application fee credit details. Citi will cover the $100 application fee on a one-time basis when you charge it to the card. Global Entry allows you to get through international customs faster when entering the US. Global Entry includes TSA PreCheck as well. The $100 application fee credit will reset once every 5 years.

My personal bottom line. As an existing cardholder, there is no doubt the card has lost some important features. I’ve gotten my $100 Global Entry credit and $250 annual airfare credits without issue. But my most often-used feature, the Admiral Club lounge access will last until July 2017 but will disappear after that. Unless the annual fee drops significantly, that single change will probably make it not worth paying for another annual fee.

Overall bottom line: This card still offers a pretty good package during the first year of cardownership. Assuming you fly enough on any airline to make the airfare purchases, you can redeem the $250 annual airfare credit in both later 2016 and again in early 2017, for a total of $500 statement credit. (The $250 annual credit resets every December billing statement.) Then you have the $532 in airfare redemption value from the 40,000 ThankYou points, good on any airline. That’s $1,032 of flexible value, minus the annual fee of $450, for $582 minimum net value in the first year. Then you add in whatever value you place on the other perks like $100 Global Entry fee reimbursement, 3/2/1 rewards tiers, and the 4th night free benefit.

In addition, if you have a big stash of Citi ThankYou points, getting this card could increase the value of your existing point balance due to the special 1.33 cents per ThankYou point conversion rate towards airfare.

“Disclaimer: This content is not provided or commissioned by the issuer. Opinions expressed here are author’s alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer. This site may be compensated through the issuer’s Affiliate Program.”

Housing Investment Returns = Price Appreciation + Rental Dividends

image-2

Professer Robert Shiller has a new NY Times article entitled Why Land and Homes Actually Tend to Be Disappointing Investments. He computes the historical, long-term inflation-adjusted returns for both farmland and housing: Over the century from … [Read the rest]

Lifetime Allocation Pie Chart: Learning, Earning, and Returning

life_aa

You always see pie charts used to illustrate asset allocation for portfolios. Stocks, bonds, commodities, real estate, etc. How about a pie chart for deciding how to allocate your lifetime: This was one of the "life lessons" provided by … [Read the rest]

US Stock Ownership in Taxable vs. Tax-Deferred Retirement Accounts

tpc_stockowner

If I was going for a clickbait title, I'd say "No one invests in taxable accounts anymore". The Tax Policy Center has a new report by Rosenthal and Austin about how the share of U.S. stocks held by taxable accounts has dropped significantly over the … [Read the rest]

Comcast Internet Essentials Review: Affordable Internet Access For Low-Income Households

Comcast offers an affordable internet access program called Internet Essentials that provides high-speed internet service for $9.95 a month + taxes, a subsidized $150 computer with Microsoft Office, and free digital literacy training to eligible … [Read the rest]

The Continued Decline of Cooking at Home

nocook2

Quartz published an article with the provocative title No one cooks anymore, noting that for the first time Americans are spending more money eating out (including bars and restaurants) than at grocery stores. The trend has been very steady for the … [Read the rest]

Ally CashBack Credit Card Review: 2% Cash Back on Gas and Groceries + 10% Relationship Bonus

allycbcc

If you have an Ally Bank savings or checking account, you've likely been pitched their new Ally CashBack credit card recently. Here are the highlights: $100 bonus when you make $500 in eligible purchases during the first 3 billing … [Read the rest]

Infographic: 401(k) Plan Participation Stats

401k_bw2

As we pass the halfway mark of this year, it was time for my quarterly check-in on my 401(k) account. The best-case scenario for a 401(k) plan is: Company match. A little extra help from your employer is always nice. Good default … [Read the rest]

Google Fi: Simple, Pay As You Go Cell Plan With High-Speed International Data Included

filogo

We recently returned from a family trip to Europe, and I found myself missing my data plan more than ever before. I kept thinking about the slow 2G data that T-Mobile includes in their postpaid plans and how it might power data-light apps like … [Read the rest]

UberPool vs. Public Transportation: New York City Promotion

uberpool1

It's no secret that Uber wants to take over the world... or at least replace individual car ownership. Uber just announced a New York City UberPool promotion that offers unlimited rides this July and August: Two-Week Unlimited Commute Card … [Read the rest]

Infographic: The Best Paying Job In Each State, Relative To National Average

bi_jobpay

Business Insider mined data from the Bureau of Labor Statistics and compared the state average salary and the national average salary for each job occupation. The single occupation with the largest percent difference is listed in the infographic … [Read the rest]