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Updated: Sep 01, 2023

How to Save More With the Fidelity Rewards Visa Signature Card

The Fidelity Rewards Visa Signature credit card offers the best cash back rate that's good for increase investing funds in Fidelity accounts.
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Spending the money and saving money are two very different things - but with the right credit card, it’s possible to do both. Fidelity Investments, the second-largest mutual fund, and financial services provider in the world, offers the Fidelity Rewards Visa Signature Card for people who want to add to their retirement savings, fund a college account, or expand their investment portfolio using cash rewards. This card offers an easy way to increase your nest egg every time you spend without paying an annual fee.

Fidelity Rewards Visa Signature Card Offers the Best Cash Back Rate

Arguably the most notable feature of this card is its cash-back feature. The Fidelity Rewards Visa Signature Card pays unlimited 2% cash back on all purchases, which is something that other cash rewards cards are hard-pressed to compete with. That means you’ll earn the same 2% back on groceries, gas, travel, or dining out, with no complicated bonus categories or spending caps to worry about.

Cash-back is earned as reward points, with 2 points being the equivalent of $1 in net purchases. These points never expire, as long as your account remains open and in good standing. When you redeem these points by depositing them into a qualifying Fidelity account, they’re automatically converted to cash.

How much cash back can you earn?

The more you spend with the card, the more cash back you can add to your Fidelity account. Here’s an example of how quickly your cash rewards can pile up:

  • $500 in grocery purchases = 1000 points
  • $200 on dining out = 400 points
  • $300 on gas = 600 points
  • $300 on entertainment = 600 points
  • $1300 total spending = 2600 reward points

Points are redeemable for cash at a value of 1 cent apiece so those 2600 points would be worth $26 in cash in your Fidelity account. If you averaged the same monthly spending over the course of a year, that’s $312 you could add to your investment capital, just for using your card to cover everyday purchases.

How can the Fidelity Rewards Visa Signature Card grow your investments?

The cash rewards you’re earning with your Fidelity Rewards Visa Signature Card can be extremely valuable over time, thanks to the power of compound interest. As you continue depositing cash rewards in an eligible Fidelity account, the interest continues to accumulate on your investments. This table demonstrates how much growth potential this card offers over the short and long-term.

Potential Growth This Card Offers Over a Short and Long-Term

Investment Term Regular Annual Contributions Investment Value Cash Rewards Contributions Additional Investment Value
1 Year $10,000 $10,709 $360 $385
5 Years $10,000 $61,582 $360 $2,215
10 Years $10,000 $147,954 $360 $5,322
20 Years $10,000 $439,000 $360 $15,792

**These examples assume a 7% annualized rate of return, monthly credit card spending of $1500 and an annual rewards rate of 36,000 points.

As you can see, your cash rewards can carry a lot of weight over time if you’re investing them in a Fidelity account. You stand to get more mileage by investing your rewards than you would with another card that only lets you redeem them for gift cards, statement credits, or merchandise.

What Accounts Are Eligible to Redeem Cash Back?

There are four different Fidelity accounts that you can deposit your Fidelity Rewards Visa Signature Card rewards into:

  • Brokerage account
  • Fidelity Cash Management Account
  • Fidelity-managed 529 College Savings account
  • Retirement account

Fidelity’s brokerage account is a low-cost trading account that offers access to stocks, mutual funds, ETFs, bonds, options, CDs, and precious metals. This account also allows you to trade on margin and invest in 25 global markets. A fee of $7.95 per trade applies.

The Fidelity Cash Management Account is a no-fee alternative to traditional checking. There’s no monthly fee, no minimum balance fee and all ATM fees are automatically reimbursed. You can write checks, pay bills online or use your Fidelity debit card for purchases.

A 529 plan is a tax-advantaged way to set aside money for future college expenses. Parents can set them up for kids, or you can set one up for yourself if you plan to go back to school at some point. Withdrawals are always tax-free as long as they’re used for qualified education expenses. Fidelity manages four different college savings plans:

  • UNIQUE College Investing Plan
  • U.Fund College Investing Plan
  • Delaware College Investment Plan
  • Fidelity Arizona College Savings Plan

You can invest your Fidelity cash rewards into any of these plans, regardless of which state you live in.

Finally, you can add your cash rewards to a Fidelity retirement account. Eligible options include a 401(k), traditional or Roth IRA, rollover or inherited IRA, SEP IRA, or SIMPLE IRA. Just keep in mind that any cash rewards you deposit into a Fidelity retirement account are subject to the annual contribution limits established by the IRS.