Although I still like my Fidelity 529 College Rewards Card and its 2% back towards a 529 account, there are some hurdles like having to set up recurring deposits and dealing with potential tax issues. But that doesn’t mean you should settle for any of those 1% cashback cards everyone else is offering! The similar Fidelity Investments Rewards Card offers you the equivalent of 1.5% cash back on virtually everything with minimal hassle.
You get one point for each dollar you spend, and 5,000 points is the same as $75 payment deposit into an eligible Fidelity account, including taxable brokerage accounts and IRAs. The beauty is that Fidelity accounts have no annual maintenance fees, so if you don’t already have an account you can just keep the balance at $0 and transfer the money immediately back into your own bank account.
The only catch is that you need to open the account initially with at least $2,500, which you can withdraw right afterwards. But, if you have $10,000 available, you can get a separate $100 bonus for opening a taxable brokerage account (IRAs don’t count). You get the $100 in about 7 days after your deposit clears according to the terms, and then you can take all $10,100 back out.
Even if you already use another card that gives you higher than 1.5% – like the Citi Driver’s Edge Card (mentioned previously) or the HSBC Rewards Card that give you 5-6% back on gas, groceries, and drugstores, if you use them together (one card for gas/groc/drugs, this for everything else), you’ll have a great 1-2 combo.