Invest Your Rewards With the Fidelity Rewards AMEX Card

By Jason Steele. Last updated 28 August 2014. 7 comments

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Do you want to earn the most credit card rewards possible, but are tired of trying to figure out which purchases are eligible to earn a bonus? Most reward credit cards offer 1% cash back on most purchases and a higher percent on select bonus categories. Others offer a fixed percentage on all purchases, usually 1% to 1.5%. And in most cases, the best reward cards require the payment of an annual fee.

However, there is one exception. The Fidelity Investments American Express Rewards card offers class leading 2% cash back when you direct your deposit into your eligible Fidelity account, but with no annual fee.

How These Cards Work

You can apply for one of three reward cards that are linked to an eligible Fidelity account. The card can be for investment rewards, 529 college savings rewards, or a retirement account. Cardholders then receive 2% cash back on all purchases, with no limits.

Other Benefits

This card offers a basic set of benefits including retail purchase protection, travel and emergency assistance, and rental car insurance.

In addition, cardholders receive a 0% APR introductory financing offer on balance transfers that is valid for seven months after opening the account. (After that, the balance transfer APR is 13.99%.) There is a $10 or 4% balance transfer fee, whichever is greater.

Costs

There is no annual fee for this card, but there is a 1% foreign transaction fee on all transactions processed outside the United States. While I would prefer not to see this fee at all, at least cardholders still earn more rewards than they pay in fees when they travel beyond the border.

The APR on purchases is 13.99%. This is a relatively low rate for a rewards card, but it is by no means one of the lowest interest rate cards on the market. Since this is a reward cards, those who carry a balance should stay away from these products and look for the card with the lowest interest rate.

Pros

The cash back reward of 2% on all purchases is the highest fixed rate of return available on all purchases. In addition, cardholders can look at this card as a savings and investment tool, as their rewards will be deposited into their investment account. It is great that this card has no annual fee and a reasonable slate of benefits.

Cons

Unlike many reward cards, there is no sign up bonus offered. The seven months of 0% APR promotional financing on balance transfers is welcome, although shorter than most other similar offers. However, the 4% balance transfer fee is significantly worse than most others that come in at 3%.

Who This Card Is Best For

As with all reward cards, this card is for those who pay every statement balance in full and on time. Beyond that, this product works for the reward card user who wants to use one card for all purchases while earning the most possible cash back. This is also a great card for those who are not good at transferring money each month to a savings or investment account. With this card, savings happen automatically as cardholders make everyday purchases, and users can check their investment accounts from time to time to see how their savings add up.

By offer leading rates of return with no annual fee and no gimmicks, this rewards card can only be seen as a sound investment.

Terms and restrictions apply.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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Guest's picture
Eph

I have this FIA card and take my 2% as cash (sent as a check) once I hit 25000 points. It's not easy to set up, but it's doable.

Guest's picture
MarioGreat

Hmm, it seems there's a stipulation that the account requires you to have direct deposit into the eligible account in order to get 2%. So the best way to probably set this up is to open a 'Cash Management' account, direct deposit into that, then you pretty much have to use that as your primary bank account.

The alternative, the Visa one, requires you to spend $15K first before you get 2%.

Honestly, the rewards is very attractive and it seems worth it. I'll have to look more into it, though.

Guest's picture
Eph

You can get 2% cash back with this very card once you hit 25000 points. At 20000 points, it's 1.6%. You get 2points for every dollar spent. So, once you spend $12,500, you can get a check for $250. No limits. I do it all the time.

Guest's picture

This is an interesting credit card that kind of helps putting money in your brokerage account on auto pilot. I have a Fidelity account and will check this out as an option.

Guest's picture
Oscar Castillo

I remember trying to apply for this a couple of years ago and getting denied. Now that I do have it, it is my primary credit card and intend on using it as long as humanly possible.

Guest's picture
Guest

Very poor service by FIA Card Services on this Card. Hard to believe a crack outfit like Fidelity would co-brand with this card.

Do not use this card....stay far away !

Guest's picture
Eph

I have had no problem with customer service. Love this card.