Fidelity Rewards review: Earn 2% cash back with no annual fee

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Fidelity Rewards review: Earn 2% cash back with no annual fee
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Review Summary: The Fidelity® Rewards Visa Signature® Credit Card offers a simple but valuable cash back offer. This card is also appealing to those who want their rewards to go directly into an investment account.

Pros

Cons

  • 2% cash back on everything with no limits
  • Rewards are deposited into a qualifying Fidelity investment account
  • No annual fee
  • No sign-up bonus
  • Must be a Fidelity customer to apply
  • 1% foreign transaction fee

How the Fidelity Rewards credit card works

This card offers you 2% cash back on all purchases and your rewards must be deposited into a qualifying Fidelity account such as a brokerage account, 529 college savings plan, retirement account or health savings account (HSA). Otherwise, it’s a very simple card that comes with some valuable shopping and travel benefits. There’s no annual fee and a 1% foreign transaction fee.

Fidelity Rewards Visa Signature review: Table of contents

How to earn rewards 

The Fidelity Rewards card offers you a blanket two reward points per dollar spent, and reward points don’t expire as long as your account remains open. There are no bonus categories and no limits to the number of points you can earn.

How to redeem rewards 

Reward points can be redeemed for one cent each as a cash deposit into an eligible Fidelity account. You need to earn a minimum of 5,000 points before you can deposit the funds into an account. You can redeem these points manually or configure your card to redeem points automatically on a monthly basis. Other rewards options include travel, merchandise, gift cards or statement credits, but these don’t offer the value of cash deposits.

Additional cardholder benefits 

  • Purchase Security: Repairs or replaces items in the event of theft or accidental damage within 90 days of purchase
  • Extended warranty coverage:  Will add up to one year to your manufacturer’s warranty of three years or less
  • Auto rental collision damage waiver: Covers rental cars when you decline the optional insurance
  • Lost luggage reimbursement: Covers you for up to $3,000 if your luggage is lost by an airline or another common carrier
  • Visa Signature benefits: This program offers additional travel and shopping discounts

Alternatives to the Fidelity Rewards Visa Signature

  • Citi® Double Cash: This card offers up to 2% cash back on all purchases, with no annual fee. And even though this is an excellent rate of return, it doesn’t offer the ability to automatically direct your rewards to savings; you would have to have the dedication to do so manually. Also, it has no sign-up bonus, lacks premium travel benefits and has a 3% foreign transaction fee.
  • Upromise® Mastercard® from BarclaysThis card offers you 1.25% cash back on all purchases, and your rewards can be directly linked to an eligible 529 college savings plan. Upromise’s Round Up lets you round up your purchases to the nearest dollar so you can voluntarily increase your savings. Finally, you’ll receive a 15% bonus on your rewards, including the Round Up as long as your account is linked to an eligible 529 plan. There’s no annual fee and no sign-up bonus.
  • Schwab Investor Card® from American ExpressThis card offers you unlimited 1.5% cash back on all purchases, automatically deposited into your eligible Charles Schwab brokerage account. It also offers a $100 sign-up bonus as a statement credit when you spend $1,000 on your card within three months of account opening. There’s no annual fee for this card.

RELATED: 8 of the best rewards credit cards right now 

Final thought

Other than the 2% cash back, the most appealing thing about the Fidelity Rewards card is that your rewards can be automatically deposited into an investment account. The feature makes it a great way to add to your retirement, college savings or other investment account every month. And while you won’t earn a sign-up bonus when you open a new account, you’ll never have to pay an annual fee, either. That’s why the Fidelity Rewards Visa Signature is one of our best rewards credit cards.

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