Credit Cards That Help You Save

When we think of credit cards, we usually think of them as a tool to help us shop, to help improve our credit rating and as something that is convenient to use (when we think of them in a positive fashion of course). But did you know that there are a handful of cards which can help you retire better down the line? Of course, it’s a true handful; there are exactly five credit cards which right now give you retirement savings as your reward as opposed to things like cash back and points. What are they and how do they work?

American Express and Fidelity

American express has partnered up with Fidelity Brokerage services and has three investment credit cards:

Fidelity Investment Rewards American Express Card: Your reward cash back goes into a brokerage account

Fidelity Investments 529 College Savings Rewards American Express Card: Your reward cash goes into a 529 college savings plan

Fidelity Retirement Rewards American Express Card: Your cash back goes into a retirement account like an IRA.

These cards give you 2% cash back on your purchases which is then put into an account of your choice. It’s a dead easy way to save for the rest of your life! Add in no annual fee and it’s even easier to save money.

Visa Signature

Visa Signature has also partnered up with Fidelity Investments to offer a single card that gives you 2% cash back towards your Fidelity account. This money can go into whatever account you want: investment, college savings or retirement. You get 1.5 points/$1.00 spent on the first $15,000 in purchases per year and 2 points/$1.00 spent thereafter. 5,000 points can be converted into a $50.00 deposit. It’s a convenient way to shop and pay your bills while saving for retirement, plus no pesky annual fee to worry about.

Upromise, Barclays Bank and MasterCard

Finally, we have the Barclays MasterCard which is partnered up with Upromise. It offers tiered cash back rewards. You get 8% cash back for eating at partnered restaurants, up to 5% for booking hotels and travel and 1% on everything else. This cash back can go into a high yield savings account (10% annual match), into a 529 Savings account plan, to pay down an eligible Sallie Mae Student loan or just in the form of a check. This card isn’t as far reaching as the other two, but for people who love Upromise, it’s a good idea. It too has no annual fee.

While credit cards used irresponsibly will kill your savings, the right credit card can really help you out! These five retirement/savings credit cards are a good example of how you can combine a couple of financial goals in one and make saving just a little bit easier. And who knows; it could be that this style of credit card will grow more popular over time too. Good luck and enjoy!

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