Best Credit Card for Everything Except Grocery, Gas, and Drugstore Purchases

This is part of the TFB Awards for Best In Class in Financial Services series.

The Fidelity Investments Rewards Card wins the award in the category of Best Credit Card for Everything Except Grocery, Gas, and Drugstore Purchases. For grocery, gas and drugstore purchases, you are better off using the other card, but for everything else, this card wins the award. For the maximum benefit, you need a Fidelity Investment account, which is also a TFB Award winner. You earn 1 point for each $1 purchase. You can redeem every 5,000 points for $75, deposited to your Fidelity account. Most other reward cards gives 1% cash reward on purchases. You get 1.5% cash reward from this Fidelity card. That’s 50% more! The card is offered by FIA, formerly MBNA, now part of Bank of America. It has a unique bill payment service which allows you to pay other bills from the credit card. Although bill payment from the card does not earn reward points, you can consolidate all your other bills into the card and pay only one bill from your bank account. This makes managing your checking account really simple. If you use the card to pay all your bills every month, the float gained is easily worth over $150 a year.

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Comments

  1. indexfundfan says

    I use the 529 rewards card with 2% rewards. Anyone can use this card. If you do not really need a college fund, you can periodically “cash out” the 529 plan. The penalty is minimal, which is a 10% tax penalty on the appreciation in whichever fund you selected.

    Many think that MBNA’s Bill Pay using the credit card will go away on 10/23. We will see.

    Good blog by the way.

  2. Harry Sit says

    I knew about the Fidelity 529 card but I didn’t give it the TFB Award because it involves a Fidelity 529 plan, which is not the best 529 plan and not everyone needs a 529 plan. Come to think about it, 10% penalty on the appreciation is not bad at all. Say you earn $200 rebates and the $200 earned $10 interest in a money market fund, the penalty is only $1. Hmm … setting up a 529 plan for depositing rebates only. Is it worth it? I will have to do some digging. Thanks for the tip!

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