We here at the Investor Junkie household have multiple accounts with Fidelity, and it is the primary account for our taxable investments. In addition, our low interest “fixed” rate credit cards suddenly skyrocketed to over 9% and are now at variable rate. It was time for a new credit card strategy, because low interest rate credit cards are going the way of the do-do bird. We primarily used the cards for their points anyways, and after thinking about it, %1 return wasn’t such a hot deal.
I thought it would be a good time to scout for a new credit card and focus on points since we primarily pay off our card monthly. I noticed that Fidelity offers two credit cards, one American Express based and the other is a Visa Signature Card. While the AMEX card offers 2% for all purchases, we already had an American Express with Costco. We also wanted a more widely accepted card so most transactions could go on the card. The Visa card offers:
- 1.5% cash back when spending up to $15,000 annually
- 2.0% cash back on any purchases above $15,000
- No limits on cash rewards
- No annual fee
- Direct deposit into any Fidelity account when the cash balance is greater than $50.00
Sign me up! We easily charge over $15,000 per year to our primary credit card. The card has a somewhat high interest rate (13.99%), which is fine for us since we pay it off monthly. We charge EVERYTHING on the card: daycare, telephone bills, home repairs, grocery shopping, etc.. Heck, I would even put our mortgage payment on it if we could. I realize that defeats the purpose of paying off the debt. I’m just saying…
Based upon my estimates, we should get approximately $1,000 annually into our Fidelity account.
We thought it was the best credit card with cash back, especially since we already use Fidelity. I am aware that Schwab offered a 2% cash rebate credit card. It looks like, unfortunately, that offer is no longer available. Right now, for us, this appears to be the best deal available that will deposit money directly into an investment account.