Fidelity Rewards Visa Review

fidelity_rewards_visaThe Fidelity Investment Rewards Visa is a rewards credit card which allows members to earn cash back on every purchase with no limits and no rotating categories.  This card does not currently offer a signup bonus to new members.  Fidelity previously offered two cash back credit cards, a Visa and an American Express, which were both issued through FIA Card Services which is part of Bank of America.  These two cards have now become the Fidelity Investment Rewards Visa which is issued through US Bank.

Members earn 2% cash back on all purchases, all the time.  Every net dollar spent equals two rewards points.  Net purchases are the total amount of transactions minus any credits, returns or other adjustments.  Important note:  The 2% rewards value only applies when points are redeemed for a deposit into an eligible Fidelity account.  These accounts include but are not limited to:

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

If you choose to redeem points for other rewards such as travel options, merchandise, gift cards, and/or a statement credit, the redemption value will be less than 2%.  Establishment or ownership of a Fidelity account is not required to apply for and obtain the Fidelity Investment Rewards Visa.  However, to receive the full 2% cash back rewards value upon redemption, you must have an eligible Fidelity account in which to deposit your earned rewards.

Redemption of rewards into a Fidelity account requires a minimum of 5,000 Fidelity points which is equal to a $50 deposit.

There are no limits on rewards points and no rotating categories.  Points do not expire as long as your account remains open, active and in good standing.

Cardholders receive a variable APR of 14.24% on purchases and balance transfers.  Additionally, all balance transfers are subject to a fee of 3% of the total amount of the transfer or $5 (whichever is greater).

The Fidelity Investment Rewards Visa is Digital Wallet-enabled for:

  • Apply Pay
  • Samsung Pay
  • Android Pay

This feature allows members to make mobile purchases conveniently and securely.

Account holders receive additional Visa Signature benefits such as:

  • Zero fraud liability – You are never responsible for any unauthorized charges.
  • Concierge Service – 24/7 access to complimentary assistance with travel bookings, restaurant reservations and getting concert tickets.
  • Travel and Shopping offers – Enjoy hotel and transportation discounts, a best available rate guarantee and special offers from premium retailers.
  • Cardmember support – Rely on 24/7 U.S. – based customer service for any questions concerning your account.
  • Worldwide acceptance – Use your card anywhere in the world that displays the Visa logo.

Members are charged a 1% foreign transaction fee on all purchases made while traveling outside of the U.S.

The card comes with EMV chip technology for enhanced security when making purchases at a chip-enabled terminal.

The Fidelity Investment Rewards Visa has no annual fee.

The Facts

Below we have broken down the specific details of the Fidelity Investment Rewards Visa to help you determine if it’s worth signing up.

The Good:

Simple rewards program:

Card members earn 2% cash back on every purchase, all the time.  Every net $1 spent equals two rewards points.  Net purchases are defined as the total amount of transactions minus any credits, returns or fees.

Easy to redeem:

To earn the full value of the 2% cash back rewards, members must deposit earned rewards into an eligible Fidelity account such as:

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

If you choose to redeem points for other rewards such as travel options, merchandise, gift cards, and/or a statement credit, the redemption value will be less than 2%.

Rewards are not capped:

There is no limit on the amount of rewards you can earn with the Fidelity Investment Rewards Visa.  Plus, points never expire as long as your account remains opens, active and in good standing.

No rotating categories:

There are no rotating categories to remember or sign up for.  No matter where you shop, you earn 2% cash back on your purchases.

Good choice if you want to invest:

Members earn the full 2% redemption value when depositing earned rewards into an eligible Fidelity account.  This feature makes it easy to invest for your retirement or your child’s college fund.

Digital Wallet-enabled:

Account holders can make mobile purchases conveniently and securely using the following services:

  • Apple Pay
  • Samsung Pay
  • Android Pay

Additional Visa Signature Benefits:

  • Zero fraud liability
  • Concierge Service
  • Travel and Shopping offers
  • Cardmember support
  • Worldwide acceptance

Smart-Chip Technology:

The card comes with EMV chip technology for enhanced security when making purchases at a chip-enabled terminal.

No annual fee:

There is no annual fee associated with this card.

The Bad:

No signup bonus:

There is no signup bonus currently available with this card.

No introductory APR:

The Fidelity Investment Rewards Visa does not offer an introductory APR on either purchases or balance transfers.  All members receive the same variable rate – 14.24% – at the time of approval.

Foreign Transaction Fee:

Cardholders are charged a 1% foreign transaction fee on purchases made while traveling internationally.

The Ugly:

Restriction on redemption values:

Members earn 2% cash back on all purchases but the 2% rewards value only applies when points are redeemed as a deposit into an eligible Fidelity account.   While you are not required to open or already own a Fidelity account to apply for and obtain the Fidelity Investment Rewards Visa, you do have to deposit your rewards into an eligible Fidelity account in order to receive the full 2% redemption value.

If you choose to redeem points for other rewards such as travel options, merchandise, gift cards, and/or a statement credit, the redemption value will be less than 2%.

The Fidelity Investment Rewards Visa is a good choice for people who want a simple rewards card without the hassle of spending caps and rotating categories.  The card also gives members an easy way to invest earned rewards into a retirement account or a child’s college savings account.  The card’s rewards lose value when used for other redemption choices such as travel options or statement credits.  For this reason, it is best suited to someone who wants to invest or save for the future.