Fidelity is switching their Fidelity Investment credit card from American Express to Elan. The Fidelity Investment Rewards Card [1] earns 2% cash back on all purchases.
I rotate our credit cards quarterly [2] to earn the highest reward on all of our purchases, but I do have a favorite everyday spending card.
I’ve used our Fidelity card exclusively for everyday spending as the best cash rewards credit card for years (ever since the old Schwab card [3] disappeared seven years ago).
As I mentioned in the Best Credit Cards to Maximize Cash Back at Costco [4] the new card will also be a Visa card so you can still use it at Costco.
Fidelity Rewards Visa Signature Card
New Visa cards will be sent to current Fidelity American Express cardholders between mid-June and mid-July; we received our new cards earlier this week.
If you do not have a Fidelity card you can open one at: Fidelity Investment Rewards Card [1].
Eligible Fidelity Accounts
You can choose to link your cash back credit card to a variety of Fidelity accounts, including the following:
- Most non-retirement accounts
- Traditional and Rollover IRAs
- Roth IRAs
- SEP IRAs
- Fidelity–managed 529 Plans
Terms and Conditions
- No annual fee.
- Earn 2 points per dollar, up to 150,000 points per year.
- Account must be open and in good standing to earn and redeem rewards and benefits.
More on Fidelity
IRS Rules. Be aware that if you select a retirement or college savings account, the cash back will count against your yearly contribution limits [5], so you’ll have to keep careful track.
Earning Points. The 2% cashback is tracked in points. You earn 2 points for each $1 you spend. The redemption value is different if you do not deposit your points into a Fidelity account.
Redeeming Points. You can automatically redeem your cashback as a $50 deposit into your Fidelity account after you reach 5,000 points.
Link Your Account. You need to link your card to your Fidelity account online. Once you link your account redemptions will happen automatically.