Fidelity Credit Card Explanation

The Fidelity cash back credit card, or is it? The caveat is that it is a cashback card, but you actually have points that you have to redeem for cash, and only the way that they allow you. (and I’ll explain at the end of the video, which will be short and quick and to the point). Usually, these are when they’re cashback, why I like this particular one so much and why I use it.

Okay, what do you get? Well, first of all, there’s no annual fee. That’s typically what’s happening in the industry now. Why charge an annual fee when you’re charging outrageous interest rates, and those people aren’t paying their cards on time? They’re getting charged interest rates; they’re making plenty of money. They don’t need annual fees.

So, with the Fidelity card, for every dollar you spend, and it doesn’t matter what category it’s in, you’ll get two points. If you redeem those points into a Fidelity managed account, then you’ll get cash. So, it is a two percent cashback as long as you’re putting it into their brokerage account. I believe it’s an IRA account, HSA account, 529 account, and some others, but it has to be at Fidelity. It’s real simple. You can actually automate it when your statement comes, and you can see it online. It’ll tell you once a month exactly how many points you have, and you can set it up to redeem it to any of those accounts. You can actually set it up to redeem it 20 percent into your IRA and 80 percent into your brokerage, however you want to do it.

So, zero annual fee as long as you put it into their account, you can use it for cashback. And I’ll tell you why I really like it. A lot of people have trouble, not a lot, some people have trouble saving their money. So when they put cashback into their checking account or savings account, they typically will just spend that money if they’re not already putting it aside. The nice thing about this Fidelity account is that if you put it into your brokerage account, which is what I do, then you might go ahead and invest it. If you put it into a vehicle, you can look online, S&P 500 or some sort of fund that you can kind of just set and forget if you’re going to leave it there for a long period of time. Now you’re getting two percent cashback every month. You’re investing into whatever fund or stock it might be, which means you’re dollar-cost averaging. You’re not picking the highs; you’re not picking the lows; you’re just buying it consistently over a period of time, and hopefully, that money will then also grow.

If it’s something like the S&P 500, it might grow 5%, 7%, 10%. I think the average is around 12% a year. That’s a great return on the money, and it forces you or allows you to save it instead of going out and spending it. So, take a look at the Fidelity card, two percent. And if you use one of our other hacks, you can 2x it, 4x it, 6x it, or even more on a monthly basis to get even more cashback. Follow our channel, please subscribe, and if you like it, please like it. We’ll have many more to come. Thank you.

See a full Fidelity Cash Back Credit Card Review.