Investment Account Contributions are Reward for some Credit Cards

A recent Foxbusiness.com article calls attention to the fact there are credit card reward programs designed to help consumers contribute to a variety of investment accounts including, IRAs, 529 accounts, brokerage accounts, and others.

Reward points earned with the Fidelity Visa Signature Card, for example, can be redeemed for contributions to a variety of investment accounts, and at rates slightly more favorable than other no annual fee cash back credit cards. Fidelity also offers a range of similar American Express branded products.

Similarly, the rewards program on the BarclayCard UPromise World MasterCard enables cardholders to contribute to 529 plans, Sallie Mae high-yield savings accounts, or make payments towards payments toward some Sallie Mae serviced loans.

Investment-oriented reward programs may prove useful as a way to reach high net-worth individuals, a segment that is especially desirable for card issuers and networks.

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