Signing up for credit cards through partner links earns us a commission. Terms apply to the offers listed on this page. Here’s our full Advertising Policy.
Update: One or more card offers in this post are no longer available. Check our Hot Deals for the latest offers.
Big news for folks with an AMEX Fidelity card!
By July 1, 2016, Fidelity will transition all of its customers to new Visa Signature cards issued by US Bank. And the new Fidelity Visa card still offers unlimited 2% cash back on purchases.
I’ll explain what this means if you already have the card. And show you a few new perks you’ll gain!
Emily and I don’t earn a commission on this card, but we always tell you about the best deals!
What’s Going On?
Starting today, folks can apply for the new Fidelity Visa Signature card, which offers 2% cash back on purchases, with no limits or caps. And no category bonuses to think about!
The card also has NO annual fee. So it’s an excellent card to keep forever to help boost your credit score.
There is NO sign-up bonus for opening this card.
Because it’s a Visa Signature card, it’s widely accepted at lots of merchants. And you’ll be able to enjoy Visa Signature perks!
However, it does have a 1% foreign transaction fee. That’s low, but something to consider when overseas.
What If You Already Have the Card?
Fidelity used to offer 2 cash back credit cards, an AMEX and a Visa, through FIA Card Services (which is part of Bank of America). But now both of those cards will become a Fidelity Visa issued by US Bank.
And folks with 1 of these cards will get a new card by July 1, 2016.
I wrote about the AMEX version of the Fidelity card. It’s been a great way to load your AMEX Serve account because you can only add funds online with an American Express credit card. And until now, folks with the AMEX Fidelity card have been able to earn 2% cash back on up to $1,000 a month.
They’ve also been able to access valuable AMEX Offers.
They can use their card until they receive a new Fidelity Visa. There’s not a clear timeline for the change, but Fidelity wants to replace all cards by July 1, 2016. So if you have the AMEX Fidelity card, use it while you can!
If you currently have the Visa version, the new card actually has better rewards. That’s because the old Visa card offered 1.5% cash back until you reached a $15,000 spending threshold each year, then 2% cash back after that.
But the new Fidelity Visa Signature card offers 2% cash back starting with the 1st purchase.
How Does the Cash Back Work?
You’ll earn 2% cash back on all purchases when you deposit rewards points into your eligible Fidelity account, including:
- Fidelity brokerage accounts
- Fidelity Cash Management Account
- Fidelity-managed 529 College Savings plan
- Fidelity retirement accounts
The cash back is earned as 2 points per $1 spent. And each point is worth 1 cent, which adds up to 2% cash back.
And you’ll earn compound interest when you redeem toward investments, which makes any rewards you earn worth more over time. The longer you let any interest you earn accrue, the more you’ll potentially earn.
You can redeem a minimum of 5,000 Fidelity points for a $50 deposit into 1 of the accounts mentioned above.
That said, you can add money to more than 1 account. So it’s easy to add cash to the Fidelity Cash Management Account (which works as an online-only bank account), or an investment account.
We don’t know yet if US Bank will add new redemption options. But I suspect it will still be easy to redeem your Fidelity points for cash in your Fidelity account.
Use the Fidelity Visa at Costco!
Starting in April 2016, Costco stores will only accept cash and Visa cards as payment (although you can still purchase Costco cash cards up to $1,000 on their website with any major credit card).
Until March 31, 2016, Costco stores will still accept AMEX cards. So if you have the AMEX Fidelity card, you can use it at Costco to pay for purchases. And when you receive your new Fidelity Visa card, you can use it at Costco for cash back beginning in Spring 2016.
This is an easy way to get an additional 2% rebate when you shop at Costco stores (or anywhere else that accepts Visa cards)!
Should You Sign-Up for The New Fidelity Visa?
This card is a fantastic option for folks who like simplicity. That’s because you’ll earn a flat 2% cash back everywhere you shop.
That said, there are other cash back cards that don’t require you to have a separate account. For example, the Citi Double Cash Card earns 1% cash back on your purchases and 1% cash back on your payments.
And you can earn even more with the Discover it® Miles card, you earn 1.5 miles per $1 you spend on all purchases and your miles are matched after the 12th billing cycle.
I prefer earning points with cards like the Chase Sapphire Preferred. Because you can transfer your points to travel partners like Hyatt and United Airlines for Big Travel.
But the Fidelity Visa card is a good choice if you want:
- To invest your money for retirement or your children’s college fund
- An easy cash back card with no category restrictions or limits to think about
- A Visa card to use when AMEX or Discover isn’t accepted by a merchant
The Fidelity Visa Signature card doesn’t currently have a sign-up bonus. But if that changes, or if US Bank adds new reward options to the card, I’ll post an update and let you know!
There’s a new Fidelity cash back card! Starting today, you can apply for the new Fidelity Visa, issued by US Bank. Folks who already have the AMEX Fidelity or Fidelity Visa card from Bank of America will receive their new card by July 1, 2016.
The new Fidelity Visa will earn 2% cash back on purchases, which you can add to your eligible Fidelity accounts.
Instead of cash back, I prefer cards like the Chase Sapphire Preferred for Big Travel!
Emily and I don’t earn a commission on the Fidelity Visa, but we’ll always tell you about the best offers!