Analyze this credit card offer

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Analyze this credit card offer

Postby Rusa » Fri Apr 05, 2013 4:04 pm

Fidelity Investment Rewards: no annual fee, deposits unlimited 2% of every retail purchase directly in "eligible" Fidelity account ("eligible" is defined as "non-retirement, Individual Retirement Accounts, and Fidelity-managed 529 Plan accounts that accept ACH deposits"). I always pay off a card monthly so not worried about the interest rate (13.99% fyi). The only catch I see is that you have to have 5000 points before the reward begins (through purchases at 2 points per $1 = $2500). I can't tell if once you have the 5000 points, you can roll the entire amount into your Fidelity account or starts deposition on purchases made after the 5000 points. It would take me about 3 months to get to 5000 points.

2% sounds like a great deal to me :moneybag since I use credit cards to make most of my purchases.

Has anyone done this? Any comments?
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Re: Analyze this credit card offer

Postby M1garand30064 » Fri Apr 05, 2013 4:12 pm

Yep. I use that and the Fidelity visa card that pays 1.5% cash back. I love them! As long as you are disciplined and pay them off in full every month they are a great deal. They've earned my wife and I several thousand dollars over the past few years. We use them for work and get reimbursements on purchases, so we are making bank there! :D
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Re: Analyze this credit card offer

Postby jeff1949 » Fri Apr 05, 2013 4:36 pm

Rusa wrote:Fidelity Investment Rewards: no annual fee, deposits unlimited 2% of every retail purchase directly in "eligible" Fidelity account ("eligible" is defined as "non-retirement, Individual Retirement Accounts, and Fidelity-managed 529 Plan accounts that accept ACH deposits"). I always pay off a card monthly so not worried about the interest rate (13.99% fyi). The only catch I see is that you have to have 5000 points before the reward begins (through purchases at 2 points per $1 = $2500). I can't tell if once you have the 5000 points, you can roll the entire amount into your Fidelity account or starts deposition on purchases made after the 5000 points. It would take me about 3 months to get to 5000 points.

2% sounds like a great deal to me :moneybag since I use credit cards to make most of my purchases.

Has anyone done this? Any comments?


I seriously considered this Fidelity card but ended up with a Priceline Visa that pays 2% from the get go. I have been quite happy with it for 3 months now. It replaced my Chase Freedom card but I still need/use my Costco AmEx Business card for the 4% off gasoline and for Costco purchases.
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Re: Analyze this credit card offer

Postby bungalow10 » Fri Apr 05, 2013 4:48 pm

I've had that Fidelity card for several years. It's pretty slick, they direct deposit the rewards, I don't have to remember to redeem them.

It's my go-to Amex card and the one I use when I shop at Costco.
An elephant for a dime is only a good deal if you need an elephant and have a dime.
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Re: Analyze this credit card offer

Postby tyrion » Fri Apr 05, 2013 5:02 pm

I also have this card - fidelity amex. It works as advertised. I use it for everything except gas (penfed 5% gas card). When I have more than $50 in rewards it deposits it in my fidelity account, which happens to be the mysmartcash account so it's my primary checking account.

I imagine using it for an IRA could be tricky with contribution limits. Other than that, I don't see any caveats.
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Re: Analyze this credit card offer

Postby centrifuge41 » Fri Apr 05, 2013 6:35 pm

The thing is, credit card rewards and rules change so often that unless you are a heavy spend customer, you are most likely better off going for cards with a larger signing bonus, even if the continuous rewards aren't as great.

Consider the Barclaycard Arrival, for instance. Right now, the signing bonus on that card is worth $444 of travel credit. It earns 2% in travel credit, but the annual fee is $89 (waived first year). The Fidelity Amex doesn't have a signing bonus, whereas the Barclaycard's signing bonus is worth $22k in spending on a 2% card. So, you can ask yourself, how long does it take to spend $22k? If it will take you a long time, you are probably best off getting the Barclaycard, using it for the year, then after ~11 months, considering whether it makes sense to downgrade that card to the free version (which does not earn 2% on everything).
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Re: Analyze this credit card offer

Postby WHL » Fri Apr 05, 2013 11:49 pm

I had the Fidelity AMEX card for about a year after the Schwab 2% VISA was cancelled.

I'm not 100% sure, but I do not remember the cash back being automatically deposited into my brokerage account, I clearly remember having to redeem it through (I believe) FIA card services website in order to get the cash into the brokerage.

Not a terrible card. Not all of my utilities take Amex which was a bit of a pain. Much better rewards by churning credit card bonuses, however.
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Re: Analyze this credit card offer

Postby slug » Sat Apr 06, 2013 12:14 am

I've had this card as a backup to the too good to last Schwab card. Once the Schwab program ended, I took this one out of the drawer and put it into action. It works exactly as described and as far as I know is not headed for extinction nor has it changed its terms. CS on the card has been good. A couple of times they have sent my bonus offers for 5% at home improvement for a quarter which I though was nice but a little weird seeing as it's not a rotating rewards card. I use this as my catch-all card when I can't get a higher % back.
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Re: Analyze this credit card offer

Postby Rusa » Sat Apr 06, 2013 9:55 pm

Thanks, everyone. Think I will look for cash sign-up bonuses instead as I'm not going to spend all that much on this card. In the meantime I still have Discover and a ThankYou Rewards card from Citi to play with.
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Re: Analyze this credit card offer

Postby Sbashore » Mon Apr 08, 2013 1:14 pm

Reminds me of the Schwab Bank Visa I had years ago. It paid 2% and was pretty slick. It's long gone.
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Re: Analyze this credit card offer

Postby midareff » Mon Apr 08, 2013 1:21 pm

I've had it for a few years now and whenever a pay threshold is reached they automatically deposit it to my FIDO account. I like the card a lot, but I like the PenFed 5% off on gas and the AMEX 6% off on groceries better. Then there is the FIDO Visa (1.5%) and the Discover 5% revolving.... I'm sure there are more. I pay everything off monthly and probably received more than $2K back last year.
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