The FINANCIAL — Fidelity Investments, one of the leading retail brokerage and retirement savings providers, on January 4 announced with U.S. Bank and Visa Inc. a new long-term card-issuing program that will offer Visa branded credit-card products to U.S. consumers, including Fidelity’s 24 million customers.
“Customers using Fidelity’s 2% cash back credit cards have earned more than $1 billion in cash rewards since 20033, demonstrating that the opportunity to use everyday spending to help bolster contributions for longer-term savings and investment goals is too good to ignore,” said Ram Subramaniam, president of Fidelity’s retail brokerage business. “We are excited to be working with leaders Visa and U.S. Bank — together we offer the Fidelity Rewards Visa Signature Card — now one of the most valuable cash-back cards in the industry.”
Under the new card program, U.S. Bank will issue the Fidelity Rewards Visa Signature Card and the Fidelity Investments 529 College Rewards Visa Signature Card4, where cardmembers can earn unlimited 2% cash back with no annual fees, caps or categories when directing rewards into eligible Fidelity accounts5. The new cards in the program will be issued with chip technology for security and give access to the payment industry’s leading digital wallets, including Apple Pay, Samsung Pay and Android Pay.
“We are excited about Visa’s expanded agreement with Fidelity Investments and U.S. Bank, and how together we will bring cardmembers convenient, innovative and secure ways to pay while helping them earn rewards to help fund life’s most important milestones,” said Ryan McInerney, President Visa Inc.
“Fidelity Investments and U.S. Bank are two of the most respected brands for helping Americans achieve financial security,” said Shailesh Kotwal, vice chairman of payment services for U.S. Bank. “Together, we are able to offer a new card program that builds on our reputations, making it even easier for customers to plan and build for their financial futures.”
U.S. Bank has also agreed to acquire Fidelity’s existing co-brand credit card portfolio with approximately $1.6 billion in associated balances.
Earn and Be Rewarded
With competitive APRs and no annual fee, cardmembers earn two points for every net dollar spent to build towards future investment goals. For example, with every $5,000 spent, cardmembers will earn 10,000 points, equivalent to $100 cash back6 when directed into an eligible Fidelity account. Cardmembers can opt to receive a one-time or automatic monthly cash deposit into most non-retirement accounts such as a Fidelity brokerage account or Fidelity Cash Management Account, as well as a Traditional IRA, Roth IRA, Rollover IRA, SEP IRA or Fidelity-managed 529 College Savings Plan accounts7. Cardmembers may also exchange points to receive:
Travel benefits: use points when booking flights, hotel stays or car rentals
Merchandise: choose from a wide selection of electronics, apparel, sporting goods and more
Gift cards: select a gift card from leading retailers and restaurants
Statement credits: opt to redeem points for a statement credit
Cardmembers can also enjoy Visa Signature benefits, including acceptance at millions of merchant locations globally, complimentary concierge services, and enhanced travel/lifestyle premium benefits like lost luggage reimbursement up to $3,0008.