Credit Card News: Shopping

A new rewards card from Fidelity Investments, Visa, and U.S. Bank will give members unlimited 2% cash back on all purchases, as well as the chance to invest in long term savings programs.

When cardholders put their rewards toward eligible Fidelity accounts, they will receive 2% cash back on all purchases, with no limits. The Fidelity Rewards Visa Signature Card and the Fidelity Investments 529 College Rewards Visa Signature Card will feature chip technology and be compatible with Apple Pay, Samsung Pay, and Android Pay.

“We are excited about Visa’s expanded agreement with Fidelity Investments and U.S. Bank, and how together we will bring cardmembers convenient, innovative and secure ways to pay while helping them earn rewards to help fund life’s most important milestones,” said the president of Visa Inc., Ryan McInerney.

Fidelity’s existing co-branded credit card portfolio, worth an estimated $1.6 billion in balances, will be acquired by U.S. Bank.

No fees, plenty of rewards

The cards will have no annual fee, low APRs, and lots of opportunities to earn rewards. For every $5,000 they spend, cardholders will earn the equivalent of $100 cash back. The catch is that they must direct deposit that cash back into an eligible Fidelity account. Eligible accounts include non-retirement accounts, like Fidelity brokerage accounts and Fidelity Cash Management accounts, as well as traditional IRA and Roth IRAs. Fidelity’s 529 College Savings plans are also eligible.

For folks who don’t want to put their credit card rewards into savings, there are other options. They can use points to book flights, hotel stays, or car rentals, they can redeem them for gift cards, or they can choose to get statement credits or shop merchandise from a rewards mall featuring electronics, clothing, sporting goods, and more.

Visa Signature benefits

As with all Visa Signature cards, these new cards will be accepted at millions of merchants across the globe, and they will come with a slew of perks. These include concierge service, lost luggage reimbursement, travel and lifestyle benefits, purchase protection, car rental insurance, and zero liability for fraud.

Current cardholders of Fidelity co-branded cards can continue to use their cards. Information about the new benefits will be sent to them, and they will be able to use all the perks and benefits offered to new cardholders.