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Credit cards that only allow cardholders to redeem rewards for cash back make up a tiny fraction of the market today. Many cards now have a range of redemption options, from statement credits to gift cards; others allow you to use your rewards to pay off student loans, save for a down payment on a house, or buy a new car.
There are also some credit cards that allow you to deposit your rewards into a 529 plan or retirement account, or to purchase cryptocurrency. Using rewards in this way can add to your overall investment strategy, but it is not a substitute for continued savings to achieve long-term goals. These credit cards restrict cardholders to investing in products from specific financial institutions. Investments can only be in cryptocurrency.
As long as you understand the limitations, a credit card with an investment redemption option can help you reach your savings goals.
Bank of America Credit Card
Annual Fee: Varies.
Awards: Varies.
Redemption: The Bank of America cash back credit card has a variety of redemption options, including applying to a qualified 529 plan with Merrill Lynch. Cardholders must have at least $25 to claim rewards this way.
🤓Nerd Tips
Bank of America cardholders who make positive investment changes in eligible Merrill Lynch accounts may qualify for credit card rewards ranging from 25% to 75% under the bank’s Preferred Rewards program.
Fidelity® Rewards Visa Signature® Card
Annual fee: $0.
Rewards: Earn 2% unlimited cash back on all purchases. Cardholders who participate in the Fidelity Rewards+ program can earn 3% cash back. Minimum asset requirement to join the Fidelity Rewards+ program is $250,000.
Redemption: Cardholders can redeem rewards toward a variety of Fidelity investment vehicles, including Traditional IRAs, Roth IRAs, Rollover IRAs, SEP IRAs, HSAs and 529 plans. Rewards are worth 1 cent each when they are returned to an investment account. To redeem rewards, your credit account must be in good standing and you must have at least 2,500 points.
Fisher College Savings Mastercard
Annual fee: $0.
Awards:
- Earn unlimited 2% cash back when you deposit your rewards into a 529 plan.
- 529 plans get 1% unlimited cash back.
Redemption: Fisher-Price credit cards earn rewards through properly designated College Savings Rewards points. These points can be deposited as a deposit into a linked 529 plan. A minimum deposit of $25 is required at time of pick-up.
Gemini Credit Card
Annual fee: $0.
Awards:
- Earn 4% back on gas and EV charging station purchases. (Up to $200 per month for one year. After that, you’ll earn 1% back on gas and EV charging station purchases.)
- 3% rebate on dining.
- Earn 2% back on groceries.
- 1% will go back to other things.
Redemption: Rewards are available in cryptocurrencies. Cardholders can choose from over 40 currencies, including Bitcoin. The Gemini Card is one such product that allows you to redeem rewards immediately after earning them, rather than having to wait until the end of the billing cycle.
Neon Money Club Cream American Express Card
Annual fee: $128.
Rewards: Earn 1.5x points on all purchases, with no cap. (This amount can be doubled; see next section.)
Redemption: Points can be redeemed for stock market investments. Neon Money Club offers a 100% rewards match.
Owner Rewards Card
Annual fee: $0. To get a rewards rate of 2.5% and above, you need to subscribe to M1 Plus, which costs $36 per year.
Rewards: Earn 1.5%, 2.5%, 5% or 10% cash back. Cardholders will earn the highest reward amount if they shop at merchants in the cardholder rewards program. Earn 1.5% on purchases from non-predetermined retailers. Cash back is capped at $200 per month across all reward levels.
Redemption: Rewards will be deposited directly into an eligible M1 Invest account. Cash rewards cannot be deposited into the following M1 Invest accounts: Traditional IRA, Roth IRA, SEP IRA, Trust Account or Custodial Account.
Robin Hood Gold Card
Annual fee: $0. However, to get this card, you need to subscribe to Robinhood Gold, which costs $5 per month. If you pay an annual subscription, it’s $50.
Awards:
- Earn 5% cash back on travel bookings through the Robinhood travel portal.
- 3% cash back on other funds.
Redemption: Rewards earned using the Robinhood Gold Card can be redeemed for cash and deposited into a Robinhood financial brokerage account. This redemption option is 1 point equal to 1 cent.
Cardholders must have the Robinhood Credit Card app to claim the rewards.
SoFi Unlimited 2% Credit Card
Annual fee: $0.
Awards:
- Earn 3% cash back rewards on travel booked through Sophie Travel.
- Earn unlimited 2% cash back rewards on all other purchases.
Redemption: You’ll earn 1 cent per point when SoFi Credit Card Rewards are transferred to your SoFi Active Invest account. There is no minimum requirement to redeem rewards, but you may not be able to complete a redemption if you have an overdue balance on your credit card.
Update MasterCard.
Annual fee: $0.
Awards:
- Earn unlimited 1.529% cash back when your Upromise account is linked to any of the college savings plans on this list.
- If your Upromise account is not linked to a qualifying college savings plan, you can earn unlimited 1.25% cash back on purchases.
Redemption: Rewards redemption is handled by Upromise, a loyalty program designed to help people save for big goals like college. Upromise makes redemption easy: Rewards earned with the Upromise Mastercard are deposited directly into a linked, qualified college savings plan. Rewards do not accumulate on expired accounts.
Venmo Credit Card
Annual fee: $0.
Awards:
- Earn unlimited 3% cash back on your top spending categories each month (from one of eight possible categories: travel, dining, groceries, entertainment, and bills/utilities).
- Earn unlimited 2% cash back on your second highest spending category for the month (from one of the remaining seven categories).
- Earn unlimited 1% cash back on all other purchases (those that don’t fall into one of the spending categories listed below).
Redemption: If cardholders opt into the cash-back crypto program, the money they earn on their Venmo credit card can be immediately used to purchase one of four cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, or Litecoin. A minimum of $1 is required to purchase cryptocurrencies.
