Especially in these tough economic times, rewards cards are a popular way to earn cash rebates, gift cards or other free stuff in return for paying the bills that we have to pay anyway.
But how about rewards cards that deposit your savings in a brokerage or IRA account?
It's in an interesting idea, and since the money is staying with the institution offereing the card, the rebates are actually fairly high - 2% cash back on all purchases.
Interested? Check it out:
Fidelity Investments: the Fidelity Retirement Rewards Cards (AMEX). Users earn 2% cash back on all purchases, with no limit on points. All rebates are deposited in a Fidelity traditional, Roth or SEP IRA. You're still limited to regular contribution limits though.
Nest-Eggz: the Next-Eggz card (Visa). Users earn 1% cash back that can be directed to any retirement or investment account.
Schwab: the Schwab Bank Invest First Signature (Visa). Users earn 2% cash back, deposited into a Schwab (taxable) brokerage account.
Of course, as with any benefits card these rebates are only worth it if you pay your balance IN FULL each month. It makes no sense to pay 17% interest in order to get 2% back!
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