Fidelity credit cards are built around cash back tied to your brokerage account
Fidelity issues two main credit cards through Elan Financial Services: the Fidelity Rewards Visa Signature Card and the Fidelity 2% Cash Back Visa Card. Both return cash back directly to a Fidelity brokerage or retirement account rather than to a bank account or statement credit. That structure matters — it means you need an existing Fidelity account to use the card, and the rewards sit in an investment account until you move them.
The Fidelity Rewards card gives 2% cash back on groceries, gas, and utilities for the first year, then 1% on those categories after that, plus 1% on everything else. The 2% Cash Back card gives a flat 2% on all purchases with no category limits or time restrictions. Neither card charges an annual fee, and both offer standard protections like fraud liability limits and purchase protection.
The real difference between Fidelity cards and most other cash back cards is where the money lands. You cannot transfer rewards to a bank account or redeem them for travel or merchandise. They go into your Fidelity account as a cash balance, and from there you can invest them, leave them sitting, or eventually move them out if you close the account.
Key Takeaways
- Fidelity credit cards deposit cash back into a Fidelity brokerage or retirement account, not a bank account or credit card statement.
- You must have an existing Fidelity account to open either card, and the account must remain open to use the rewards.
- The Fidelity Rewards card offers higher rates on groceries, gas, and utilities for the first year, then drops to 1% on those categories; the 2% card gives a flat rate on all purchases.
- Both cards have no annual fee and offer standard fraud and purchase protections.
- Rewards sit in your Fidelity account as cash until you invest them, spend them, or withdraw them.
How rewards land in your Fidelity account
When you make a purchase with a Fidelity credit card, the cash back posts to your Fidelity account within one to two billing cycles. It appears as a cash balance in the account you linked to the card — usually a brokerage account, but it can also be an IRA or other Fidelity account type.
From there, the cash sits available to invest, transfer, or withdraw. You can buy stocks or funds with it, leave it earning the money market rate Fidelity offers on uninvested cash, or request a transfer to a bank account. There is no time limit on how long the cash can stay in your account, and no requirement to invest it.
If you close your Fidelity account, any cash back balance remains yours — you can transfer it to a bank account or another brokerage before closing. The card itself closes when the account closes, so you would need to open a new Fidelity account to use a Fidelity card again.
Comparing the two Fidelity card structures
| Feature | Fidelity Rewards Visa Signature | Fidelity 2% Cash Back Visa |
|---|---|---|
| Groceries, gas, utilities | 2% for 12 months, then 1% | 2% all the time |
| All other purchases | 1% | 2% |
| Annual fee | None | None |
| Foreign transaction fees | None | None |
| Sign-up bonus | Varies by offer period | Varies by offer period |
The Fidelity Rewards card makes sense if you spend heavily on groceries, gas, or utilities and want that extra 1% for a year. After the first year, it becomes a 1% card on those categories, so the 2% card becomes the better choice for most people long-term unless you are willing to track category spending.
The 2% card is simpler: one rate on everything, no categories to track, no bonus period that expires. It works well if you want a straightforward cash back card and already have a Fidelity account for other reasons.
What happens if you do not have a Fidelity account yet
You cannot open a Fidelity credit card without an existing Fidelity brokerage, IRA, or other investment account. Opening an account takes about 10 minutes online and requires basic personal information, a Social Security number, and a funding source (bank account or initial deposit). You do not need to fund it with a large amount — many people open accounts with $1 to $100 just to hold the credit card rewards.
If you are not interested in investing or do not plan to use Fidelity for other financial services, opening an account just to hold a credit card may not be worth the extra step. In that case, a cash back card from another issuer that deposits rewards to a bank account or statement credit might be simpler.
Fidelity does not charge account maintenance fees on brokerage accounts, so there is no cost to keeping an account open even if you do not trade or invest. The account can sit dormant with your credit card rewards accumulating in it.
Rewards and redemption limits you should know
Fidelity credit cards have no stated cap on how much cash back you can earn, and no restrictions on which purchases earn rewards. Groceries, gas, utilities, restaurants, travel, subscriptions — all count toward the cash back rate for that card.
The main limitation is that rewards cannot be redeemed for anything other than cash in your Fidelity account. You cannot transfer them to airline miles, hotel points, or a third-party rewards program. You cannot redeem them for merchandise or gift cards through Fidelity. The only option is cash into your account.
If you want to move cash back out of Fidelity and into a bank account, you can request a transfer or withdrawal at any time. Fidelity typically processes these within one to three business days, though the receiving bank may take additional time to post the funds.
How Fidelity cards fit into a broader credit strategy
A Fidelity card works best as part of a strategy where you already use Fidelity for investing or retirement savings. The rewards feed directly into an account you are monitoring anyway, and the cash back can be reinvested or left to grow. If you are building a portfolio or saving for retirement through Fidelity, the card becomes a natural extension of that account.
If you do not use Fidelity for anything else, a Fidelity card adds a step: you have to open and maintain an account just to hold the rewards. In that case, a cash back card from another issuer might be more convenient, since the rewards go directly to a bank account or appear as a statement credit.
Some people carry both — a Fidelity card for everyday spending that feeds into their investment account, plus another card for specific categories or travel rewards. The key is understanding where each card's rewards land and whether that matches how you manage money.
Frequently Asked Questions
Do I need to invest the cash back, or can I leave it sitting in my Fidelity account?
You can leave it sitting. Cash in a Fidelity account earns the money market rate Fidelity offers on uninvested balances, which changes based on market conditions. You are never required to invest it, and you can withdraw it to a bank account whenever you want.
What happens to my credit card rewards if I close my Fidelity account?
Any cash back balance remains yours. Before closing the account, you can transfer the balance to a bank account or move it to another brokerage. Once the account closes, the card closes too, but your money does not disappear.
Can I use a Fidelity credit card if I only have a retirement account, not a regular brokerage account?
Yes. Fidelity allows you to link the card to an IRA or other retirement account. The cash back deposits there just as it would in a regular brokerage account. Check Fidelity's current rules on whether rewards can be invested within a retirement account type, since some account types have contribution limits that may affect how you use the cash back.
Are there foreign transaction fees on Fidelity credit cards?
No. Both Fidelity cards waive foreign transaction fees, so you can use them internationally without paying extra. The cash back rate stays the same whether you are spending in the United States or abroad.
What is the sign-up bonus, and how does it work?
Fidelity periodically offers sign-up bonuses on both cards, but the amount and terms change. Check Fidelity's website or contact them directly to see what bonus is current. Bonuses typically require you to spend a certain amount within a set timeframe, and the bonus posts to your account as cash back once you meet the requirement.