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
Image Credit: Fidelity/Clark.com

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

  • $100 welcome bonus after spending $1,000 within the first 90 days of the account opening
  • 2% cash back on everything with no limits
  • Rewards are deposited into a qualifying Fidelity investment account
  • No annual fee
  • 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.

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 is no limit 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

This is one of many cash back cards offered. Some, like this card, feature more than 1% cash back on all purchases, but with no bonus categories. While others offer just 1% on most purchases, but with opportunity to earn bonus cash back for certain purchases. For more information, see our article on the The 5 best cash back credit cards right now.

RELATED: 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 accounts 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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