Investing

A Complete Fidelity Credit Card Review: Is The 2% Worth It?

Javier Simon

Published: April 29, 2024 9:00 am

The Fidelity Rewards Visa Signature Credit Card offers an impressive 2% cash back on all purchases. And it comes with no annual fee. That’s a solid combination that helps the Fidelity credit card stand out in the crowd. But it does have its downsides.

For instance, you need to be an existing Fidelity customer to apply. And you can only deposit your rewards points into an eligible Fidelity account such as a brokerage account. This means you can’t redeem your rewards for cash or credit.

Still, the Fidelity credit card can be a great way for new and current Fidelity customers to put their investment earnings on auto pilot.

So let’s take a closer look.

Fidelity credit card: The pros

With the Fidelity credit card, you get 2% cash back on every-day purchases and these points don’t expire. Plus, there are no restrictive categories. So you can earn points by grocery shopping, going out for the night or making a big purchase.

So it’s nice to know that you can be growing your retirement nest egg just by using your credit card at the supermarket.

And you can deposit these earnings into one of these eligible Fidelity accounts.

• Brokerage account
• Traditional individual retirement account (IRA)
• Roth IRA
• Fidelity Go account (robo-advisor)
• Cash Management Account
• Health savings account (HSA)
• 529 College Savings plan
• Charitable Giving Account

Moreover, the Fidelity rewards credit card offers up to 3% cash back for Fidelity Wealth Management clients. But Fidelity offers the following perks to all card holders.

• No cap on earnings
• Zero foreign transaction fees
• Travel benefits
• Compatibility with Apple Pay, Google Pay, and Samsung Pay

Nonetheless, the Fidelity credit card may not be right for everyone.

The cons

One major drawback to the Fidelity Rewards Visa Signature credit card is that you can only apply if you’re an existing Fidelity customer. And you’re limited to depositing your rewards into an eligible Fidelity account such as a brokerage account or a Fidelity Roth IRA.

That’s good news for satisfied Fidelity customers who want some extra cash to boost their investment accounts. But not so much if you’re just shopping for a rewards card that lets you redeem your rewards for cash, credit, or other bonuses.

Additionally, you’d likely need good-to-excellent credit to qualify for the Fidelity credit card.

Fidelity credit card: The verdict

The Fidelity credit card can be an effective option for a current or new Fidelity customer who wants an extra way to fund an eligible investment account.

But if you’re seeking a solid rewards credit card that can allow you to redeem your rewards for cash and other benefits, you may want to consider banks like Wells Fargo, Capital One, and Chase.

Still, if you like the idea of setting up a rewards credit card to complement an investing account and you’re new to Fidelity, the firm has a lot to offer. You can open a brokerage account with no minimums and start investing in commission-free stocks, exchange-traded funds (ETFs), and options today. You’d also have free access to advanced research tools.

But before you decide on Fidelity, be sure to explore similar credit card options linked to brokerage accounts such as the Charles Schwab credit card, as well as offers from other providers like E-Trade and Robinhood.

Why we covered this

Considering volatility in today’s economy, many consumers are seeking ways to access credit in a way that pays them back. One popular option is a rewards credit card. But not all are built equally and some may have cons that outweigh the pros for you. So to make your search easier, we evaluated the Fidelity Rewards Visa Signature Credit Card.

If you want to learn more about Fidelity, check out our regularly-updated list of Fidelity Investments guides, news and coverage.