Fidelity Retirement Rewards Card from American Express
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 Reward Amex 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 5000 points, you can convert it into a $50 current-year IRA contribution. Rewards can be redeemed automatically or manually, so I’m assuming that you can work around IRA contribution limits if you generate more than $5k in rewards (though that would $250k in charges).
Interestingly, this card is actually backed by FIA Card Services (Bank of America) but it uses the Amex network.
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No need to work around IRA contribution limits. The money can be put into a non IRA account.
Per their faq it can be put into “non-retirement brokerage accounts”:
What accounts are eligible for a Fidelity Rewards deposit?
Comment by patty — Feb 1st 2009 @ 2:30 amIndividual Retirement Account registrations include Traditional IRA, Roth IRA, Rollover IRA, and SEP IRA. Other Fidelity accounts that can accept rewards are non-retirement brokerage accounts and Fidelity-managed 529 Plan accounts that accept Automated Clearing House (”ACH”) deposits. If you intend to deposit rewards in an eligible account, it is your responsibility to ensure that the account is one for which contributions on your behalf can be accepted and that, under applicable tax law or program policy, you are eligible to make contributions to that account for the year that the deposit is made. Refer to the applicable Fidelity account customer agreement, custodial agreement or participation agreement for information on the terms and conditions of the Fidelity account.