Fidelity Investments 529 College Rewards Card Review | CreditShout

Fidelity Investments 529 College Rewards Card Review

By Dan Rafter / October 7, 2010
Save for retirement with the Fidelity Investment Cash Back Rewards American Express Card

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Editor’s Note: There is an updated version of this review: Click Here

Verdict:

Saving for college is a daunting task. The Fidelity Investments 529 College Rewards American Express card can help.

Cardholders earn points with each purchase that they can later redeem into cash that they can deposit into their Fidelity 529 college saving accounts.

The drawback? It takes a lot of purchases to reach the minimum level to redeem these points.

Overview:

This is an especially good card for consumers who plan to use it often. It’s the only way to build up rewards points quickly enough. The Fidelity Investments 529 College Rewards card can provide anxious parents with a way to save more money for their children’s college education.

The money they deposit into a 529 plan will grow tax-deferred, and can be used to help fund their children’s college goals.

Unfortunately, parents will have to spend at least $2,500 to redeem any of their rewards points. That’s a lot of spending before any reward. The good news is that the card comes with a reasonable interest rate.

How This Card Works:

Cardholders will have at least 25 days from the close of each billing cycle to make their payments.

Cardholders who carry a balance will be charged a minimum of $1.50 for interest, even if their balance isn’t high enough to justify that amount.

Those who make balance transfers will be charged no interest on these transfers for seven consecutive billing periods. After this initial time, balance transfers will be assessed an interest rate of 13.99 percent.

Travel and Shopping Benefits:

For every $2,500 in purchases that cardholders make using their Fidelity Investments 529 College Rewards card, they’ll earn 5,000 points. Once they reach this minimum level, they can redeem their 5,000 points for a $50 deposit into their Fidelity Investments 529 account. They can also send that $50 into any other Fidelity retirement or non-retirement brokerage accounts.

Cardholders also have the flexibility to use their points to purchase merchandise, airline flights, gift certificates or cash through the card’s WorldPoints program.

There is no limit to the amount of rewards that cardholders can earn.

Fees:

Cardholders are charged an interest rate of 13.99 percent. Cash balances, after the initial seven billing periods, will be charged at the same 13.99 per.

Late fee charges can reach as high as $35, while returned-payment fees can run up to $25.

The card comes with no annual fee.

The Bottom Line

Pros

  • No annual fee.
  • Solid 13.99 percent interest rate.
  • Can earn cash to deposit into Fidelity 529 college savings account.

Cons

  • Late fee charges of up to $35.
  • Cardholders must spend at least $2,500 to redeem their rewards points.
The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone.Additionally, the opinions of the commenters are not necessarily the opinions of this site

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