Fidelity Fine Print

The Clark.com website’s review of the Fidelity Rewards Visa Signature credit card includes a comparison matrix which indicates that the unlimited 2% cash back from this card is available for a deposit into a Fidelity Investment Account, travel, merchandise, gift cards, or statement credit… but the fine print specifically says the following: The 2% cash back rewards value applies only to Points redeemed for a deposit into an eligible Fidelity account. The redemption value is different if you choose to redeem your Points for other rewards such as travel options, merchandise, gift cards, and/or statement credit.

So…which is it?? Is that Clark.com comparison review matrix incorrect, or did they recently change how the 2% is actually earned?

Thanks

I hope they do a review of Robinhood’s new gold card. It’s only available to Robinhood gold investors (gold status costs $5/month or $50/year, but you then earn 5% on your uninvested cash; otherwise, only 1.5%). But their gold card has no annual fee, no foreign transaction fees, a bunch of other benefits, and 3% cash back in all categories except for travel booked thru their own travel portal - you get 5% cash back on that.

I did not see the matrix but their discription is correct. If you redeem into any Fidelity Brokerage account you get 2%. If you use the points for an Amazon or other retailer gift card you get 1%.

Jim

Right- but getting <2% for Amazon points/credits and/or any other retailer gift card is understood- what is incorrect is that the Clark.com credit card review indicates that you get the equivalent of 2% if you simply ask for the rewards to be converted into a statement credit- the fine print indicates otherwise.

Hi, StGeorge. Thanks for reading and posting your concern here.

As per the article’s first few paragraphs, the unlimited 2% cash back does require that you direct your rewards to an approved Fidelity account to get the full 2%: "The Fidelity® Rewards Visa Signature® Card offers the chance to earn unlimited cash back on everyday purchases and have that money sent directly to your Fidelity investment account.

Choosing to invest your credit card rewards in a qualified Fidelity investment account will net you 2% back on every purchase regardless of spending category."

I do mention the other redemption options later in the article, including statement credits. These redemption options are valued at less than 2%. And I do see where the wording in the matrix may muddy the water on that a little.

I will make some adjustments to the article to increase clarity on what gets 2% back and what does not.

Hope this helps. Appreciate your input!

Nick

Thanks- yes- I would suggest that you modify the matrix’s “cash back” block to list the ‘Unlimited 2%’ if you have the rewards directly deposited into your Fidelity Accnt, and I would suggest you list as an additional Con (in the Pros/Cons section) that you can only get the full 2% cashback if you have it directly deposited into your Fidelity Accnt- any other use will result in less than 2% cash back.

It’s sort of a shame because I really like the no foreign transaction benefit of that card, but I’m more of a Schwab guy than a Fidelity guy and since they won’t give you unlimited 2% if you apply the reward as a credit to your statement, it’s not good for me.

You didn’t link to the matrix, so I don’t know whether it lists Alliant CU’s 2.5% cash back card. It also has a couple of minor drawbacks, i.e., that you need to have their checking account with a minimum balance and direct deposit to get the full 2.5% instead of a measly 1.5%. The checking account is good, so it’s not much of a drawback for me. If you like cash back, it’s hard to beat 2.5% with a single card. And it has no foreign transaction fees.

The matrix is embedded in the review of the Fidelity Rewards Visa Signature card on Clark.com- just search the website for the review.

That Alliant CU’s 2.5% cash back card would be good if it was truly unlimited, but it’s not. After you spend $10k, the reward drops to the “measly” (as you describe it) 1.5%.

While that is a limitation, I don’t expect to spend more than $10k in any month (and indeed have never hit the maximum yet). I couldn’t do that for very long and remain solvent.

I have accounts with Fidelity, but I opted to not get the 2% cash back Visa card. I learned that the card is offered and managed by Elan Financial. A few years ago, I had another credit card managed by Elan Financial and I had a bad customer service experience with them. I closed the account for the credit card.

I used to use the American Express Blue Cash card for everything. American Express has great customer service. I still have the American Express card, but they have spending tiers and categories that must be met to receive the best benefit. I also have a Wells Fargo Active Cash Credit card which I now use for most purchases. The Wells Fargo Active Cash Credit card pays 2% cash back on everything. So far, I have been very happy with it.