Fidelity Rewards Visa Review: Earn 2% Cash Back for Your Nest Egg
The Bottom Line
4.3
This can be a terrific everyday card, as long as you already do business with Fidelity and don't mind socking away your rewards in a qualifying investment account.
Rates, fees and offers
Annual fee
$0
Rewards rate
2%
Bonus offer
None
Intro APR
N/A
Ongoing APR
APR: 19.24%, Variable
Cash Advance APR: 29.24%, Variable
Balance transfer fee
Either 3% of the amount of each transfer or $5 minimum, whichever is greater.
Foreign transaction fee
1%
More details from Fidelity
- Get unlimited 2% cash back into an eligible Fidelity account to either spend or invest
- Every eligible net $1 spent equals 2 Reward Points
- No limits on total Reward Points and no restrictive categories
- No annual fee
- Reward Points will not expire
Pros and Cons
Pros
Cardholders with eligible Fidelity accounts get a high rewards rate
No annual fee
Earns same rewards rate on all purchases
Cons
Rewards must be deposited into Fidelity account to get full value
Requires excellent credit
No 0% APR period
Detailed Review
If saving money for future goals is a priority for you, the rewards that come with the Fidelity® Rewards Visa Signature® Card are hard to beat. As long as you don't need those rewards immediately and instead park them in an eligible Fidelity account, you'll earn 2% cash back on every purchase.
That flat rewards rate is right up there with the best products on the market and can make this card, issued by Elan Financial Services, a top-notch option.
However, if you don't already have or want a Fidelity account and you'd rather spend your rewards as soon as they're earned, you can find other credit cards that offer 2% back on everything. Just keep in mind those options may have their own downsides or hoops to jump through, such as membership requirements, reward caps or annual fees.
Fidelity® Rewards Visa Signature® Card: Basics
Card type: Rewards.
Annual fee: $0.
Sign-up bonus: None.
Ongoing rewards: 2 points for every eligible dollar spent, which equals 2% cash back when deposited into an eligible Fidelity account to which your card is linked. Qualifying Fidelity accounts include:
Traditional IRA.
Roth IRA.
Rollover IRA.
Simplified employee pension IRA.
Charitable Giving Account.
Health savings account.
Brokerage account.
Cash management account.
Fidelity Go investment management account.
Fidelity-managed 529 college savings plan accounts.
Note that Fidelity 401(k) plans do not qualify.
APR: The ongoing APR is 19.24% Variable.
Foreign transaction fee: None.
Other benefits:
(Note that benefits may change over time.)
Credit of up to 10,000 Reward Points (worth up to $100) every four years for the Global Entry or TSA PreCheck application fee, when you pay with the card.
Rental car insurance when you use your card to pay for the entire cost of a rental.
Compare to Other Cards
Benefits and Perks
Generous rewards rate
Earning 2% back on every purchase is hard to beat among no-annual-fee flat-rate cards. And with the Fidelity® Rewards Visa Signature® Card — unlike cards with rotating or tiered rewards — you don’t have to spend time "opting in" to bonus categories, keeping track of a quarterly calendar or remembering what purchases earn the most back.
Automated savings
For consumers already saving for retirement, college or other goals through Fidelity accounts, the Fidelity® Rewards Visa Signature® Card offers an easy way to contribute consistently without having to think about it. There's also a variety of funding options within the Fidelity ecosystem. You'll be able to deposit your rewards into one eligible Fidelity account or divide them up among several (up to five qualifying accounts). You can also use your rewards to fund a loved one's account.
No annual fee
Since the annual fee is $0, you don’t have to worry about whether you're earning enough rewards to offset the yearly cost of card ownership.
Travel benefits and credits
TSA PreCheck and Global Entry credit: This perk stands out because it’s not common for a no-annual-fee card to offer it. Plus, other cards that offer TSA PreCheck or Global Entry credit are typically travel cards. The $100 credit could cover the price of a TSA PreCheck application, which costs up to $85, and could almost cover the $120 cost of Global Entry — all for a $0 annual fee.
Rental car insurance: Similarly, it's rare that a non-travel card offers secondary rental car coverage — a perk typically reserved for travel-related products on the market.
Drawbacks and Considerations
You must be a Fidelity customer to get the most value
To earn 2% back on everything with the Fidelity® Rewards Visa Signature® Card, you must deposit rewards into an eligible Fidelity account. You can opt for other redemptions, including travel and statement credits, but points are worth less when you choose those options.
Other cards offer similar rewards rates without such a requirement. The $0-annual-fee Wells Fargo Active Cash® Card, for example, earns 2% back on all purchases. You don't need an existing relationship with Wells Fargo, and you can use that money for whatever you like. Better yet, this card has a generous welcome offer: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
You can't spend rewards as they're earned
Socking away your rewards in an investment account may make financial sense for you. But many people look to credit card rewards to help defray the costs of everyday purchases like groceries or gas. If that's you, you might be happier with a card that pays higher rewards on those kinds of purchases and allows you to take your rewards as a statement credit, such as the Blue Cash Everyday® Card from American Express. It earns 3% cash back* on up to $6,000 a year in spending in each of three categories: U.S. supermarkets, U.S. gas stations and U.S. online retail purchases. Other purchases earn 1%. Terms apply (see rates and fees).
Requires excellent credit
The Fidelity® Rewards Visa Signature® Card is marketed to people with excellent credit — meaning FICO scores of 720 and up. If your credit is good but not excellent, you'll need to build a stronger credit history before you apply. Or you could consider the $0-annual-fee Citi Double Cash® Card, which is available for a wider range of applicants. It earns 2% back on all purchases: 1% back when you buy, and 1% back when you pay it off.
How To Decide If It's Right For You
If you already have a Fidelity account that you’re using to save for retirement or college, then augmenting those savings with a Fidelity® Rewards Visa Signature® Card could be a smart move. That’s especially the case if you enjoy straightforward rewards that don’t require much thought or management.
But if you're not a Fidelity customer and you prefer to have essentially immediate access to your rewards, you’re better off looking elsewhere.
To find out how this card stacks up to the competition, see NerdWallet's list of best credit cards.
To view rates and fees of the Blue Cash Everyday® Card from American Express, see this page.
*Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
This card earns 2% back on all purchases: 1% back when you buy, and 1% back when you pay it off. You don't need a relationship with Citi and can spend your rewards as you earn them. The annual fee is $0.
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Methodology
NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.
Frequently asked questions
What credit score do I need to get the Fidelity Rewards Visa?
The Fidelity® Rewards Visa Signature® Card requires excellent credit, generally defined as a credit score of 720 or above. Credit scores alone don't guarantee approval, though. Credit card issuers will also look at your income and other information.
How can I redeem rewards with the Fidelity Rewards Visa?
Rewards on this card are earned as points, and the value of a point varies depending on how you use it. If you redeem directly into a linked Fidelity account, you get a rewards rate of 2% on everything you purchase. You can also redeem them for travel, merchandise, gift cards or statement credits, but points used that way aren’t worth as much. You need a minimum of 2,500 points to redeem rewards.
Can I use the Fidelity Rewards Visa to save for college?
Yes. Rewards can be deposited directly into a Fidelity-managed 529 college savings plan, and the 2% cash back rate applies.
Can I use the Fidelity Rewards Visa to save for retirement?
Yes. Rewards can be deposited directly into eligible Fidelity retirement accounts, including a traditional IRA, Roth IRA and rollover IRA. However, Fidelity 401(k) plans don’t qualify to receive the rewards.
Can I use the rewards from my Fidelity Rewards Visa right away?
If you want to cash in your rewards rather than put them in an investment account, you can redeem them for travel, merchandise, gift cards or statement credits, but the redemption value is lower. Consider a different 2% cash back card if you don’t want to redeem into an investment account.
