New Fidelity Rewards Visa Signature Card Review – Unlimited 2% Cash Back
Fidelity Investments, Visa and US Bank today launched a new version of the Fidelity® Rewards Visa Signature® Card. The new card, issued by US Bank, will feature unlimited 2% cash back on all purchases with no annual fees, caps or categories when directing rewards into eligible Fidelity accounts.
Benefits of the card include:
- Earn 2 rewards points for every net $1 spent
- Points do not expire, with no limits on the number of points you can earn
- EMV chip technology, with access to Apple Pay, Samsung Pay and Android Pay
- No annual fee
It’s important to note that the 2% rewards value applies only to points redeemed for a deposit into an eligible Fidelity account. While you do not need to have a Fidelity account or other relationship with Fidelity Investments in order to get a card, or redeem for other rewards, it appears that you’ll need one in order to obtain the 2% rate. The redemption value is different if you choose to redeem your points for other rewards such as travel options, merchandise, gift cards, and/or a statement credit. Full details appear in the Program Rules new card customers receive with their card, but do not appear to be yet available.
When redeeming their rewards, cardmembers can opt to receive a one-time or automatic monthly cash deposit into most non-retirement accounts such as a Fidelity brokerage account or Fidelity Cash Management Account, as well as a Traditional IRA, Roth IRA, Rollover IRA, SEP IRA or Fidelity-managed 529 College Savings Plan accounts.
Fidelity allows a significant amount of flexibility in how you decide to distribute your rewards, as you can deposit your rewards into one account or divide them among many–including using rewards to fund a loved one’s account.
Existing Fidelity cardholders
Existing Fidelity cardholders will eventually be transitioned to the new untiered 2% Visa card issued by US Bank sometime in mid-2016. In the meantime, they can continue using their cards as normal.
Depending upon what you value, the change may or may not be welcome for current Fidelity American Express cardholders. Current Fidelity Amex cardmembers also earn an unlimited 2% rebate on all purchases, but enjoy perks such as access to Amex Offers. On the other hand, as a Visa, the card will enjoy much greater acceptance from merchants.
Comparing perks should be more straightforward for those who currently have a Fidelity Visa issued by FIA. The older version of the Fidelity Visa essentially earned 1.5% on your first $15,000 in spending per year and 2% afterwards, so this change should be a nice upgrade for those cardholders.
Current Fidelity cardholders will begin to receive information from Elan Financial Services–a division of U.S. Bank that will manage the program–in mid-2016. For more information now, visit www.fidelity.com/cardmember-faqs.
For more information on the new card, including how to apply, see this link.