Earn 2% Rebates With Fidelity Rewards

Credit cards are threatening to get stingier with their reward cards after Congress cracked down on some of their most abusive fees and practices last week.

But so far this spring we’ve been seeing reward cards with more generous deals.

The Fidelity Rewards American Express card, for example, is offering a 2% cash rebate on all purchases.

The rebate can be directly deposited into a Fidelity IRA, 529 college savings plan, brokerage or savings account.

There are no limits on how much you can earn and there’s no annual fee.

(Here’s how it works: You earn 2 points for every dollar you spend and you direct those points to a designated Fidelity account. Once you’ve accumulated 5,000 points, they will automatically be converted into a $50 deposit.)

Most cash back credit cards only return 2% of what you spend at a few types of stores, such as gas stations and grocery stores, and 1% of what you spend everywhere else.

There’s only one other card we know of that pays 2% on every purchase and that’s a new one from Charles Schwab Bank.

The interest rate for purchases is a very average 16.99%. But this is a card for consumers who never carry a balance because interest charges quickly wipe out whatever you’ve earned in rebates.

Click here to compare Fidelity’s deal with other cash back credit cards.