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Fidelity Rewards Visa Signature card review

Fidelity Rewards Visa Signature card review

Published: November 15, 2017
Ratings Policy
Cash Back Rating:
3.8 rating
3.8 rating
3.8 / 5
Rewards Value: 4.3
Annual Percentage Rate: 3.0
Rewards Flexibility: 3.1
Features: 4.0

In a nutshell:

This under-the-radar cash back card offers one of the best cash back rates you can get on a credit card; but instead of using your cash on purchases, you’ll have to deposit your earnings into a Fidelity-branded savings or investment account.

Rewards Rate
2% cash back on general purchases

Sign-up Bonus
None

Annual Fee
$0

Average Yearly Rewards Value ($1,325 monthly spend)
$318

APR
14.99% (variable)

Pros

  • Rewards don’t expire
  • No limit on amount of cash you can earn

Cons

  • Can only deposit cash into a Fidelity brokerage account, cash management account, 539 college savings plan or retirement account

Other Notable Features: Travel and shopping discounts, Visa Signature concierge, purchase security, extended warranty, car rental insurance, travel and emergency assistance, lost luggage insurance, roadside dispatch, emergency card services, VIP access to dining and events

No Annual Fee Rating:
3.7 rating
3.7 rating
3.7 / 5
Rewards Value: 4.2
Annual Percentage Rate: 3.7
Rewards Flexibility: 3.1
Features: 4.0

In a nutshell:

The Fidelity Rewards Visa Signature card offers a high 2 percent cash back rate, but you’re restricted to depositing your rewards into a Fidelity account.

Rewards Rate
2% cash back on general purchases

Sign-up Bonus
None

Annual Fee
$0

Average Yearly Rewards Value ($1,325 monthly spend)
$318

APR
14.99% (variable)

Pros

  • Rewards don’t expire
  • No limit on amount of cash you can earn

Cons

  • Can only deposit cash into a Fidelity brokerage account, cash management account, 539 college savings plan or retirement account

Other Notable Features: Travel and shopping discounts, Visa Signature concierge, purchase security, extended warranty, car rental insurance, travel and emergency assistance, lost luggage insurance, roadside dispatch, emergency card services, VIP access to dining and events

Rewards Rating:
3.1 rating
3.1 rating
3.1 / 5
Rewards Value: 3.2
Annual Percentage Rate: 4.0
Rewards Flexibility: 2.7
Features: 4.0

In a nutshell:

The Fidelity Rewards card offers cash back at a high 2 percent rate, but — if you’re not inclined to open a Fidelity bank account to get the card — you may be better off searching for a cash back card with fewer restrictions or even a travel card with flexible points.

Rewards Rate
2% cash back on general purchases

Sign-up Bonus
None

Annual Fee
$0

Average Yearly Rewards Value ($1,325 monthly spend)
$318

APR
14.99% (variable)

Pros

  • Rewards don’t expire
  • No limit on amount of cash you can earn

Cons

  • Can only deposit cash into a Fidelity brokerage account, cash management account, 539 college savings plan or retirement account

Other Notable Features: Travel and shopping discounts, Visa Signature concierge, purchase security, extended warranty, car rental insurance, travel and emergency assistance, lost luggage insurance, roadside dispatch, emergency card services, VIP access to dining and events

For cardholders who are more interested in growing their savings than cashing in on travel or merchandise, the Fidelity Rewards Visa card is an attractive pick. It offers one of the best flat cash back rates on the market so you don’t have to mess with a complicated rewards scheme to maximize your cash. And unlike most cash back credit cards, it doesn’t compensate for its generous rewards rate with a hefty APR or sizable annual fee.

Instead, the Fidelity Rewards Visa Signature card sets itself apart from its competitors by requiring cardholders to deposit their earnings into an approved savings vehicle, such as a retirement account or a 529 college savings account. That requirement makes the Fidelty card more restrictive, but it also makes it attractive for cardholders who could use some help amplifying their savings.

A solid cash back rate on every purchase

It doesn’t take much effort to earn a solid amount of cash with this hassle-free cash back card. Instead of offering a higher rewards rate on certain types of purchases, the Fidelity Rewards Visa Signature card offers a simple 2 percent cash back rate on every purchase. The Fidelity card’s rewards rate is much more generous than its competitors. Most flat rate cash back cards offer just 1.5 percent cash back on general purchases. As a result, cardholders who use their Fidelity card for all or most of their spending could build up an enviable amount — especially since Fidelity doesn’t limit how much you can earn. For example, just $1,300 in spending per month could net you more than $300 in earnings every year.

No promotions

The Fidelity card doesn’t offer a sign-up bonus, though, nor does it offer any interest-free promotions. That’s disappointing for a cash back card, especially since most competitors offer at least a $100 or more as a reward for signing up. It also makes it less attractive to cardholders who want to consolidate their balances on a lower rate card. But cardholders who are looking for a longer-term card should be able to make up for the Fidelity card’s lack of an opening offer with higher rewards earnings year after year. The Fidelity card also offers a larger suite of perks than most cards with no annual fee, including lost luggage insurance, concierge services and coupons.

Low APR

In addition to its solid 2 percent rewards rate on general purchases, the Fidelity Rewards Visa Signature card outperforms its competitors with an affordably priced APR for every cardholder. Unlike most credit cards that advertise a wide range of potential interest rates, the Fidelity Rewards Visa advertises just one flat rate of 14.99 percent. That’s significantly lower than average for a cash back card. A typical cash back credit card charges at least 16.17 percent on standard purchases.

Restrictions on redemption

The biggest downside to the Fidelity Rewards Visa card is that it sharply restricts how you can use your earnings. Rather than send you a check or deposit your cash in a checking account, Fidelity will only agree to deposit your rewards in an approved savings account or investment vehicle, such as a brokerage account, a retirement account, a Fidelity Cash Management Account, a Fidelity-managed 529 college savings plan, or a Fidelity Go account. That’s a bummer for cardholders who would prefer more flexibility with their earnings. But if you already have an account with Fidelity or plan to open one and could use some help growing your savings, the Fidelity card is a useful tool. The cash you earn will also go much further if you deposit it in a savings account that earns interest or if you invest it.

Why get the Fidelity Rewards Visa Signature card?

  • You would rather use your card to bolster your savings than make additional purchases.
  • You want a low rate card that offers top rewards.
  • You charge a significant amount of your daily expenses and want to earn as much cash back as possible.

 How to use the Fidelity Rewards Visa Signature card:

  • To maximize the amount of cash back you receive, use your card for all or most of your purchases.
  • Choose a savings vehicle that will help you grow your savings more quickly.
  • Use your card for travel purchases in order to take advantage of the extended perks, such as car rental and lost luggage insurance.

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