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Use Credit Card Rewards to Save for Retirement

It’s hard for many people to save for retirement. If only there was some cash left over at the end of the month to tuck away for a retirement nest egg.  Well, Fidelity has put a new twist on saving for retirement with their Fidelity Rewards Visa Signature credit card.  With this credit card, one doesn’t need to have money left over at the end of the month to stash away in a retirement plan.  Fidelity allows card holders to use the credit card rewards they earn on purchases as deposits into a variety of savings accounts.

Savings Features

Fidelity offers card holders several different choices when determining which type of account they would like funded with their credit card rewards.  Card holders can choose from a Fidelity Cash-Management account, a brokerage account, a retirement account or even a Fidelity-managed 529 College Savings plan.  All told, Fidelity offers five different accounts in which to make deposits and card holders can split up their rewards between multiple accounts if they like.  If they prefer, they can fund a loved one’s account as well.  With this flexibility, it’s a great way to fund a child’s college education and parents can begin saving right away through diaper and formula purchases for their children.

Add up the Savings

The savings can really add up if one turns the rewards they earn on every day charges into cash for retirement, especially for those who have quite a few spending years ahead of them.  According to, if individuals were to charge $1,250 in purchases each month, within 2 months they would have $50 to add to a retirement account.  Assuming an 8% return on their investment, one could expect to fund their retirement account with an additional $33,984 within 30 years.  That is a substantial amount to save simply for buying things like groceries, gasoline and other every day items.  It is also possible to set up automatic monthly payments with the credit card to pay for items such as utility bills, phone bills, garbage service and the like to gain even more savings.

Credit Card Features

Of course there are other factors to consider when selecting a credit card to apply for and it almost goes without saying that one must diligently pay off the credit card balance every month in order not to accrue interest charges that would offset any savings.  The Fidelity Rewards Visa Signature credit card does well in the features department.  They do not charge any annual fee to use the card and they offer a very attractive 2% unlimited cash back on any type of charge.  There are no restrictive categories, any points earned never expire and there are no limit on the number of reward points an individual can earn.  

They also take advantage of newer technology by allowing charges to the card through mobile payments from Apple Pay, Android Pay and Samsung Pay.  In addition, they take advantage of the newer EMV chip technology for enhanced security when paying at chip-activated terminals.  Fidelity also offers fraud protection and never charges card holders for any unauthorized charges.  They offer 24/7 member support, 24/7 complimentary concierge service — with services ranging from acquiring concert tickets to booking travels plans.  They  periodically have special offers from certain retailers and transportation and hotel discounts, along with a best available rate guarantee.

Who Should Apply

This card is great for anyone who would like to save for retirement but is finding it very difficult to do so.  Particularly for young parents, this card has quite a few attractive features.  No annual fee, 2% rewards on all purchases and the ability to save for retirement almost effortlessly.

For questions about the Rewards Visa Signature credit card, call 1-888-551-5144.

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