Fidelity Rewards Visa Signature Card Review

The Fidelity Rewards Visa Signature Card is a great way for Fidelity customers to give their savings or investment account a little boost each time they make a purchase. The flat rewards rate of 2 points for every $1 you spend translates to 2% cash back if you redeem into an eligible Fidelity account—a deal that’s hard to beat. If you have excellent credit, this is a standout option for vigilant savers.

• Compelling rewards rate: A card offering 2% cash back across the board is hard to find, and the fact that there’s no limit on how much you can earn is an added bonus. Just keep in mind you’re only guaranteed this value if you put your points into a Fidelity account. 
• Incentive to save: Even a bit of extra savings now can make a huge difference later in life. This card helps you stay motivated to save by offering the best value for points when they’re added to a Fidelity account. And to remain disciplined, you can set up automatic redemptions. You can even contribute points to someone else’s account, like a grandchild’s college savings fund.
• Low APR: Accruing finance charges by running a balance on your card will quickly negate the value of the rewards. That said, if you have the occasional need to borrow for longer than a month, you don’t want a card with a high interest rate. The variable APR on this card is 13.99% for all approved applicants, below even the average low end offered by cash-back cards, according to data collected by The Balance. 

• No bonus for new cardholders: Most rewards credit cards, including investment credit cards, give new cardholders a jumpstart on their rewards, offering a one-time bonus or match at the end of the first year. The Fidelity Rewards Visa Signature Card doesn’t offer this benefit, so you’ll start from scratch.
• Low-value redemption options if you don’t invest: If you deposit your points into a Fidelity account, you’ll get 2% of every dollar back, but if you choose to use your rewards for anything else, they may be worth much less. For instance, redeeming for a credit against your card balance or a cruise trip gets you just half that value. (More on this below.)

The Fidelity Rewards Visa Signature Card keeps it simple. You’ll earn 2 points for every $1 you spend, with no limit and no restrictions on spending categories. That means you can use this card wherever you need to without having to worry about maximizing the rewards you earn.

What’s more, rewards don’t expire as long as your card account is open. 

To invest your rewards, you must redeem them into one or more eligible Fidelity accounts in 5,000-point increments worth $50 each, or 1 cent per point. In other words, for every $2,500 you charge to the card, you’ll receive $50, or 2% back. (Other investment cards offer around 1.5% back.) You can set it up so your points are automatically deposited at the end of each month or you can let them accrue and decide when to deposit them as you go along. 

Eligible accounts include:

• Fidelity brokerage account
• Fidelity Cash Management Account
• Fidelity-managed 529 college savings account
• Fidelity retirement accounts like traditional or Roth IRAs
• Fidelity Go account
• Fidelity Charitable Giving Account
• Fidelity HSA

You can also redeem your rewards to take a trip, buy merchandise or gift cards, or as a statement credit. However, you may very well get less value from your points if you go that route. Here are some of those options and their redemption values, according to rewards program rules accessed in January 2020: 

• Airline tickets: Up to 1 cent per point 
• Hotel bookings: Up to 0.75 cents per point 
• Car rentals: Up to 0.625 cents per point 
• Cruises, activities, packages or tours: 0.5 cents per point 
• Statement credit: 0.5 cents per point (must be redeemed in 5,000-point increments worth $25)

Make sure to redeem your rewards as a deposit into an eligible Fidelity account to get the best value for them. If you like to treat yourself with your rewards rather than save them, look for a different card.

And keep in mind that even small contributions now can make a big difference later, especially when the investment funds are essentially found money. For example, if you spend $1,000 a month on your card, you’d earn $240 in rewards over the course of a year. While that may not seem like much, over 20 years, it could grow to $10,729, assuming an annual return of 7%. (Your investment returns, of course, are based on market conditions and aren’t guaranteed.)

Credit cards can come with a lot of perks, so editors at The Balance have narrowed down the best ones. Among those we’ve chosen for their exceptional value, the Fidelity Rewards Visa Signature Card has two: 

• Insurance coverage for lost luggage: As long as your tickets were purchased with the card, you will be covered for up to $3,000 per trip if your carry-on or checked luggage is stolen or lost by an airline or other common carrier. 
• Travel accident insurance: If you paid for a trip with this card, you’re automatically covered if there’s an accident while you’re a passenger on a plane, train, or other common carrier. Loss of life, limb, sight, and hearing are covered by the $250,000 benefit, which also applies to your spouse and any unmarried children.

• Insurance for stolen or damaged purchases
• Extended warranties
• Rental car collision insurance (secondary to your own policy)
• Travel and emergency hotline

The Fidelity Rewards Visa Signature Card is issued by Elan Financial Services, which partners with financial institutions that want to outsource their credit card programs. Cardholders have access to U.S.-based customer service 24/7 and a Fidelity mobile app that lets you pay your bill and monitor transactions.

This card has standard security features, including zero fraud liability, which protects from unauthorized charges.

This card has pretty standard fees. It’s worth noting that it does charge a foreign transaction fee while many don’t. However, at 1% of the transaction amount, it’s lower than the typical 3%.