As a followup to me previous article about the Charles Schwab 2% Cash Back Reward Card, I wanted to let you guys know about a new offering from Fidelity and American Express. The Fidelity® Retirement Rewards American Express® Card offers 2% cash back in the form of a contribution to your Fidelity IRA. There’s no limit on your rewards, and no annual fee.
Here’s how it works: Receive 2 points for every dollar spent. When you reach 5,000 points, you can convert it into a $50 current-year IRA contribution. Every $2,500 spent equals a $50 deposit. Rewards can be redeemed automatically or manually, so I’m assuming that you can work around IRA contribution limits.
Interestingly, this card is actually backed by FIA Card Services, Bank of America, but it uses the American Express network.