Fidelity Rewards Visa Signature Review

Full Review of Fidelity Rewards Visa Signature

Pros Explained

• Earn Unlimited 2% Cash Back: You earn 2 rewards points per dollar of purchases which, when redeemed to a Fidelity investment account, equals 2% cash back. This rate is one of the best cash-back rates available with a no-annual-fee credit card.
• Rewards Can Be Automatically Redeemed: Set up automatic redemption of your rewards to your qualifying Fidelity account. That way, your rewards never sit idle and you can keep building your investment account balance.

Cons Explained

• No Bonus: While many cash-back credit cards—even those with no annual fee—come with one-time offers, this card does not. The high 2% cash-back rate on purchases can help make up for this. However, you might earn more in the first year with a card that offers a bonus, since these can easily run to $150 or even $200.
• The Best Rewards Rate Requires A Fidelity Investment Account: Most cash-back credit cards with similar rewards earning rates offer a range of redemption options, including statement credits and checks, with minimal variation in their benefit or conditions. By contrast, this card provides the advertised 2% cash-back rate only if you're a Fidelity customer. Fidelity will open an account for you when you apply for the card over the phone.
• Rewards Redemption Comes With Drawbacks: For one, you can't redeem your rewards to an eligible Fidelity account until your point balance reaches 2,500 (that's $1,250 in card purchases). Secondly, if you choose to redeem your rewards to a Fidelity retirement account and you have a similar retirement account elsewhere to which you’re also contributing, you could exceed the total contribution limit for a year, if you're not careful. That’s a costly mistake that could trigger financial penalties.

The Fidelity Rewards Visa Signature credit card is for people with excellent credit who want to earn cash back that helps them to invest for their future. And invest with Fidelity, specifically. An account is required to earn the card's unlimited 2% cash back on all purchases. So the card makes the most sense for existing customers. While there's little reason to get the card unless you’re willing to open an account, the rich rewards can be a strong incentive.

Rewards Earning Details

This card is marketed as offering 2% cash back. You actually earn 2 rewards points per dollar on net purchases which, when redeemed as a deposit to your Fidelity account, equals 2% of spending. You can earn unlimited points and your points never expire as long as your account remains open and in good standing.

Rewards Redemption Details

To guarantee your 2% cash-back rate, rewards must be deposited into your eligible Fidelity account. However, your points can also be redeemed for travel, merchandise, gift cards or a statement credit. But these redemptions involve a lower redemption value.

Eligible Fidelity accounts include:

• Most non-retirement accounts
• Traditional IRAs
• Roth IRAs
• Rollover IRAs
• SEP IRAs
• Fidelity Charitable Giving Accounts
• Fidelity HSAs
• Fidelity-managed 529 College Savings Plan accounts

There are two ways to redeem rewards to an eligible Fidelity account. You can set up automatic redemption or use the on-demand redemption option. 

For automatic redemption, set up your eligible Fidelity account to receive cash deposits or call 888-551-5144. Once set up, your points balance will be checked at the end of each month. If the balance exceeds 2,500 points (the minimum redemption level), your rewards points will be converted to cash and automatically deposited. Otherwise, they'll continue to accrue until you have 2,500 points.

For on-demand redemption, you manually redeem points when you wish to. You still must have at least 2,500 points to redeem rewards to an eligible Fidelity account. If you redeem your rewards for anything other than a deposit to a qualifying Fidelity account, you'll receive less than the 2% cash-back value.

How to Maximize Your Rewards

To maximize your rewards with this card, you only have to do two things. First, put all eligible purchases on your credit card to earn the most rewards points possible. Next, make sure you redeem your rewards into an eligible Fidelity account to get the most value, a penny per point, out of your rewards. 

Fidelity Rewards Visa Signature's Outstanding Benefits

• Lost luggage reimbursement: Up to $3,000 of supplemental reimbursement coverage for checked luggage or carry-on baggage that is lost due to theft or misdirection by the common carrier (with certain exceptions).

Standard Benefits

• Best available rate guarantee and certain discounts for Visa Signature Luxury Hotel Collection
• Special offers for shopping and fine dining experiences
• Concierge for booking event tickets, travel and other services
• Security insurance can be bought for stolen or damaged purchases
• Roadside dispatch
• Travel and emergency assistance services
• Complimentary ID Navigator by Norton LifeLock for ID theft protection

Cardholder Experience

This card is issued by Elan Financial Services, which was not ranked in J.D Power's 2022 U.S. Credit Card Satisfaction Study. As a cardholder, you can contact Elan Financial Services' customer service department by calling 800-558-3424. You can also manage your card on the Fidelity mobile app for Android phones and iPhones.

Security Features

This card offers standard security features such as zero fraud liability and digital wallet support but does not provide any security features that differentiate it from other cards. 

Fees to Watch out For

The Fidelity Rewards Visa Signature card's fees are in line with most cash-back credit cards. Carefully consider the balance transfer fee of $5 or 3% of the amount of the balance transfer, whichever is greater. There are cards that have an introductory period with no balance transfer fees. Watch out for the 1% foreign transaction fee, as well. While this fee is relatively low, many cards don’t charge a foreign transaction fee at all.

Final Verdict

The Fidelity Rewards Visa Signature credit card can be a smart supplement to a Fidelity investment account. It provides a simple way to regularly add to your investment account balance with a stream of credit-card rewards. While being a Fidelity customer isn’t required to have the card, without a Fidelity account the value of redeemed points is less. So, the Fidelity Rewards Visa Signature card is most beneficial for existing Fidelity customers and those willing to become one.

If you'd rather not mix rewards and investing, which may have some complications, and want to earn the absolute maximum rewards on your spending, consider other credit cards that offer exceptional rewards in the categories in which you spend the most.

Frequently Asked Questions

What Credit Score Do You Need for the Fidelity Rewards Visa Signature?

An excellent credit score is required for this credit card. That translates to a FICO Score 8 range of 800 to 850.

How Does the Fidelity Rewards Visa Signature Card Work?

If you want to redeem your rewards to a Fidelity investment account to add to your savings, apply for the card, open a Fidelity investment account, use the card to earn unlimited 2% cash back, and then deposit cash to your Fidelity account once the points balance reaches 2500. You earn two points per dollar spent. If you prefer to redeem points for travel, merchandise, or a statement credit, you can get the card without opening a Fidelity account. However, the cash back that you earn will be less than 2%.

What Is the Sign-up Bonus for Fidelity Rewards Visa Signature Card?

At this time, there is no sign-up bonus associated with Fidelity's card.

What Bank Issues the Fidelity Visa Card?

Elan Financial Services issues the Fidelity Rewards Visa Signature credit card. Elan Financial Services and Fidelity are two separate companies.