5 Things to Know About the Fifth Third Bank 1.67% Cash Back Card

With the Fifth Third 1.67% Cash/Back card, the value is right there in the name: That flat 1.67% cash-back rate is the figure you get by dividing five by three (or a “fifth third”). It's certainly a unique rate and a clever marketing strategy, and it's slightly better than the 1.5% flat rate you might find on some other cash-back credit cards.

But these days, even 1.67% back is a low-ball offer, especially considering that this card doesn't feature a welcome bonus. If you have good credit (typically, FICO scores of 690 or higher), it’s possible to qualify for credit cards that earn 2% cash back on all purchases.

In fact, Fifth Third Bank itself has just such a product in its portfolio, called the Preferred Cash/Back Card — although it has some additional hoops to jump through.

Here’s what to know about the Fifth Third 1.67% Cash/Back card.

» MORE: What is Fifth Third Bank, and are its credit cards right for you?

1. There's no annual fee, but also no welcome offer

The Fifth Third 1.67% Cash/Back card has a $0 annual fee, and it doesn’t charge foreign transaction fees for purchases made abroad. As a Mastercard, it’s also widely accepted for international purchases.

But unlike many cash-back credit cards, there's no welcome bonus for new cardholders, which is disappointing given that this card's ongoing rewards rate on spending is already underwhelming.

» MORE: NerdWallet's best cash-back credit cards

2. You need a Fifth Third account to apply for the card

Aside from the traditional requirements like a credit history and income, you’ll also need to have a Fifth Third account to apply for the Fifth Third 1.67% Cash Back credit card. Other credit cards typically don’t have this as a requirement to qualify.

If you’re already a Fifth Third customer, this requirement won’t matter. But opening an account just to qualify for this card alone isn't worth it.

3. Better incentives exist

A rewards rate of 1.67% isn't awful, but it's mediocre by today's standards. And as noted above, there's also no sign-up bonus to help you.

You can do better on both fronts.

The Wells Fargo Active Cash® Card, for instance, earns 2% cash back on all eligible purchases. It also has a bonus offer for new cardholders who can meet the spending requirement: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. On top of that, you'll get a 0% intro APR on Purchases for 12 months and 0% intro APR on Balance Transfers 12 months from account opening on qualifying balance transfers, and then the ongoing APR of 19.24%, 24.24%, or 29.24% Variable APR.

And if you're willing to track bonus categories, consider a card like the Blue Cash Everyday® Card from American Express. It earns 3% cash back at U.S. supermarkets on up to $6,000 spent per year; 3% cash back at U.S. gas stations on up to $6,000 spent per year; 3% cash back on U.S. online retail purchases on up to $6,000 spent per year; and 1% cash back on other purchases. Terms apply. This card also has a welcome offer for new cardholders: Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. Terms Apply. In addition, if offers a 0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 18.24%-29.24% Variable APR. Terms apply; see rates and fees.

4. Redemption options are flexibile

With the Fifth Third 1.67% Cash/Back card, you can sign up to receive automatic redemptions to your Fifth Third checking or savings account; you can take the cash back in the form of a paper check or a statement credit to the card; or you can use your rewards to pay down the principal of your Fifth Third mortgage loan. It's also possible to redeem your rewards for gift cards and airline tickets. Rewards won't expire as long as your card account is open and active.

The card's option to redeem rewards toward a mortgage is rare, and it can be convenient and useful. Still, you could do the same thing with rewards earned on a 2% cash-back credit card, as long as you don't mind taking a few extra manual steps.

5. The high APR makes carrying balances expensive

Rewards credit cards tend to charge high ongoing interest on balances, and the Fifth Third 1.67% Cash/Back card is no exception. As of this writing, it has an APR that can range nearly as high as 30%, depending on your creditworthiness.

Unless you can pay off your credit card bill in full every month to avoid interest charges, it’s not worth putting purchases on this card for the purpose of earning rewards. The cost of interest will far exceed any cash-back value.

If you must carry a balance on a credit card, you’re better off considering a low-interest credit card at a credit union, or using debit or cash to avoid interest charges entirely.