/The best credit cards to turn rewards from everyday spending into investments

The best credit cards to turn rewards from everyday spending into investments


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If you’re financially savvy and want to turn your credit card rewards into investments, there’s likely a card (or two) that can help you maximize your return. Whether you’re investing for retirement, college, or building up a cryptocurrency account, you can choose between several cards made just for your goals.

To earn the most rewards for every dollar you spend, you may want an investment-specific credit card or a general cash-back rewards card. Either gives you rewards that can flow into your investment account to buy stocks, bonds, funds, or anything else your favorite brokerage supports.

Regular APR

13.99% variable


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  • Pros & Cons
  • Details

  • Pros
    • Earn up to 2% cash back on every purchase, with no bonus categories to keep track of
    • Automatic deposit available to your Fidelity account
    • Rewards can potentially grow when you invest them through Fidelity
    • No annual fee
    Cons
    • No welcome bonus
    • Must have or open a Fidelity account to apply
    • Redemptions other than deposits to eligible Fidelity accounts usually offer lower value
    • Earn 2 Fidelity Rewards points per dollar on all purchases (worth up to 2% cash back) with no cap
    • Points are worth 1 cent each when you deposit them into an eligible Fidelity account (brokerage account, Fidelity cash management account, Fidelity-managed 529 College Savings plan, retirement account, Fidelity Go account, Fidelity Charitable Giving Account, or Fidelity HSA)
    • Redeem points for travel, gift cards, merchandise, statement credits, and more (points value varies)
    • No annual fee
    • Visa Signature travel, shopping, and concierge benefits
    • Must have a Fidelity account or open one during the application process

    If you invest with Fidelity, the Fidelity® Rewards Visa Signature® Credit Card should be on your radar. This card has no annual fee and enables you to redeem rewards directly into Fidelity accounts. That includes taxable brokerage, IRA, HSA, 529, cash management, and charitable giving accounts.

    The card gives you an unlimited 2% cash back on all purchases with no limits to what you can earn. Every dollar you spend earns 2 rewards points, worth 1 cent each when redeemed into a Fidelity account. You can fund your account, a family member’s account, or a combination of up to five accounts.

    Charles Schwab offers two co-branded cards in partnership with American Express. If you want to turn credit card rewards into investments, the best choice is the no-annual-fee Schwab Investor Card® from American Express. This card earns unlimited 1.5% cash back on all purchases, deposited directly into your linked Schwab account. 

    New cardholders can start with a $100 statement credit after spending $1,000 on purchases in the first three months of account opening. There’s also a 0% introductory APR on purchases for the first six months (then a 13.99% to 16.99% variable APR).

    Keep in mind the Schwab Investor Card doesn’t have the same bells and whistles as the American Express Platinum Card® for Schwab, but the Platinum version doesn’t fund your investment account and requires a high annual fee. That’s why we picked the Schwab Investor Card for those looking to increase their investment balances.

    Regular APR

    14.99% – 23.74%

    Credit Score

    Good to Excellent

    Featured Reward

    $200 Bonus after you spend $500 on purchases in your first 3 months from account opening

    Intro APR

    0% for the first 15 billing cycles


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  • Pros & Cons
  • Details

  • Pros
    • No annual fee
    • Generous bonus cash-back categories
    • Great welcome bonus
    Cons
    • Booking through Ultimate Rewards portal can restrict outside earning potential
    • Varying percentages and rotating calendar categories require extra attention
    • 3% foreign transaction fees
    • Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
    • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
    • Earn 5% on travel purchased through Chase, 3% on dining at restaurants and drugstores, and 1% on all other purchases.
    • No annual fee.
    • 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 – 23.74%.
    • No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open.


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    You don’t need an investment-specific credit card to earn cash back for investing. If you want to earn a high cash-back rate on popular everyday spending categories, consider the Chase Freedom Flex℠ card. It comes with a welcome bonus of $200 Bonus after you spend $500 on purchases in your first 3 months from account opening, and when you activate, you’ll earn 5% cash back on up to $1,500 in combined spending in categories that rotate each quarter (then 1% back).

    You’ll also earn 5% back on travel booked through Chase, 3% back on dining and at drugstores, and 1% back on everything else. There’s no annual fee, and the card includes valuable travel and purchase protections like trip cancellation and interruption insurance, extended warranty, and cell phone protection.

    Regular APR

    13.99% – 23.99% (Variable)

    2% cash back on all purchases

    Intro APR

    0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% – 23.99%, based on your creditworthiness.

    Balance Transfer Fee

    Either $5 or 3% of the amount of each transfer, whichever is greater.


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  • Pros & Cons
  • Details

  • Pros
    • No annual fee
    • Simple earning structure without confusing bonus categories
    Cons
    • Some cards earn higher rates of cash back on rotating categories
    • No sign-up bonus
    • If you don’t have any account activity for 12 months, unredeemed rewards can expire
    • While it offers a 0% introductory APR for 18 months, that’s only on balance transfers, not purchases, so you can’t use it to fund a major expense without interest. After those 18 months, it’s a 13.99% – 23.99% (Variable) APR.
    • Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
    • To earn cash back, pay at least the minimum due on time.
    • Balance Transfer Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% – 23.99%, based on your creditworthiness.
    • Balance Transfers do not earn cash back.
    • If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
    • There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater.
    • The standard variable APR for Citi Flex Plan is 13.99% – 23.99% based on your creditworthiness. Citi Flex Plan offers are made available at Citi’s discretion.


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    If you don’t want to worry about bonus categories and prefer the flexibility to redeem your cash back however you choose, the Citi® Double Cash Card is a solid pick. You’ll effectively earn 2% cash back on all purchases (1% when you buy, and 1% when you pay it off), and there’s no annual fee.

    While the Citi® Double Cash Card doesn’t currently offer a welcome bonus, it does come with an introductory 0% APR on balance transfers for the first 18 months, then 13.99% – 23.99% (Variable). Once you have at least $25 in rewards, you can redeem your cash back for a check, a statement credit, or a credit to your linked account.

    Bitcoin, Ether, and other cryptocurrency coins are all the rage. If you want to turn credit card swipes and other purchases into crypto rewards, the Crypto.com card is a good choice. This card comes in five versions and can be a little complicated for those without a cryptocurrency background.

    If you have this card and a large balance of CRO (Crypto.com’s own currency) in your account for at least six months, you can qualify for a growing cash-back rate. With no balance, you earn a flat 1%. With a sizeable $400,000 balance, you earn a massive 8% back rewards rate on all purchases.

    There are other versions between paying 2%, 3%, or 5% for different balance tiers. Higher-tier cards also reimburse you for purchases at popular merchants like Spotify,

    Netflix
    , and an Amazon Prime membership. Rewards are paid in CRO, which you can keep or convert into another coin through a Crypto.com account.


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  • Pros & Cons
  • Details

  • Pros
    • 5% cash back at Amazon and Whole Foods is hard to beat
    • Earns 2% cash back on other popular categories (restaurants, gas stations, drugstores)
    • No annual fee (though you have to be an Amazon Prime member)
    Cons
    • Other cards offer higher cash-back rates on non-Amazon purchases
    • 5% Back at Amazon.com and Whole Foods Market with an eligible Prime membership*
    • 2% Back at restaurants, gas stations, and drugstores
    • 1% Back on all other purchases
    • No annual credit card fee
    • No foreign transaction fees

    One of the best store cards around comes from Amazon.com. With the Amazon Prime Rewards Visa Signature Card , if you’re a Prime member, you can earn 5% back on Amazon and Whole Foods purchases. Some purchases qualify for an even higher rewards rate. It also includes 2% back at restaurants, gas stations, and drugstores and 1% everywhere else. There’s no annual fee, though the cost of Prime is required.

    New cardholders earn an Amazon gift card on approval to treat themselves to something fun. Instead of 5% back on Amazon purchases, you can choose a 0% APR for up to 18 months on purchases of $50 or more. However, you may want to keep every cent of cash back to fund your investment account. 

    Regular APR

    15.99% – 24.99% variable APR

    Featured Reward

    Earn a one-time $300 cash bonus once you spend $3,000 on purchases within 3 months


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  • Pros & Cons
  • Details

  • Pros
    • High cash-back rate for dining and entertainment
    • No foreign transaction fees
    Cons
    • Many other cash-back cards don’t charge an annual fee (but at least this one’s waived for the first year)
    • Unlimited 4% cash back on dining and entertainment, 2% at grocery stores (excluding superstores like Walmart® and Target®) and 1% on all other purchases
    • No Foreign Transaction Fees
    • One-time $300 cash bonus once you spend $3,000 on purchases within 3 months from account opening


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    The  Capital One® Savor® Cash Rewards Credit Card is the best cash-back card for foodies and anyone who enjoys a good night on the town. The card features 4% cash back on dining and entertainment purchases, 2% back at grocery stores, and 1% everywhere else. It offers a substantial welcome bonus: Earn a one-time $300 cash bonus once you spend $3,000 on purchases within 3 months.

    This card has a $95 annual fee, though it has a little sibling, the Capital One® SavorOne® Cash Rewards Credit Card, with a lower rewards rate and no annual fee. Either one allows you to cash out your rewards to any bank account, so you can use your cash back on some diversified ETFs to help you reach your retirement investment strategy or any other investment.

    For college-bound families, the Upromise® Mastercard® from Barclays may be the best choice. This card includes 1.25% cash back by default. If you link to an eligible college savings plan for your rewards, you earn a higher 1.529% rate. There is no annual fee for this card.

    New cardholders can start with a $150 bonus after spending $500 on purchases in the first 90 days of account opening. The Upromise® Mastercard® also includes a round-up feature that can help you earn rewards faster than the standard rate. This card is best for people who link it to an eligible 529 college savings plan and will invest for their child’s, grandchild’s, or even their own education.

    If you just want a plain and simple cash-back rewards card that allows you to easily send rewards to any brokerage, the PayPal Cashback Mastercard® is another solid option. Not only does it offer 2% cash back and a useful set of benefits, but you can also use your PayPal account to purchase and hold certain cryptocurrencies directly.

    Supported cryptocurrencies include bitcoin, ethereum, litecoin, and bitcoin cash. Or you can transfer the funds to any linked bank or brokerage to invest however you’d like. This card has no annual fee and requires you to cash out to a PayPal account. But as anyone who has used PayPal knows, it works almost like a bank and makes it easy to send your funds to any account you own, even internationally.

    How did we choose the best credit cards for investing?

    To pick the

    best credit cards
    for investing, we looked at dozens of credit cards, including brokerage, cash-back, and cryptocurrency reward credit cards. We picked cards that offered the best rewards rates with reasonable annual fees for the rewards or no annual fee at all.

    Every card here allows you to turn your rewards into investments in some form, including stocks, bonds, funds, and cryptocurrencies.

    How do brokerage accounts work?

    If you are new to investing, you will need a brokerage account to invest. Brokerage accounts are like bank accounts, but they can hold both cash and investment assets. You can fund a brokerage account from linked bank or investment accounts or with credit card rewards in some cases.

    How do I use cash-back rewards for investments?

    You can turn cash-back rewards into investments no matter what cash-back credit card you use. As long as the card allows you to withdraw funds into a bank account or check, you can deposit those funds into a brokerage account.

    Once the funds are in a brokerage account, you can use them to buy stocks, bonds, or other investments supported by your brokerage.

    Eric Rosenberg is a finance, travel, and technology writer in Ventura, California. He has in-depth experience writing about banking, credit cards, investing, and other financial topics, and is an avid travel hacker.

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