Some time ago we sadly reported the excellent Fidelity 529 rewards credit card had slashed the rewards benefit from 2% to 1.5%.

But good news!

As part of their unveiling of the new Fidelity Retirement Rewards credit card, Fidelity has announced that rewards for the popular 529 card will be bumped back to 2% early next year:

The Fidelity Retirement Rewards Card joins the award-winning(7) suite of credit cards offered by Fidelity that help investors save for key investment goals such as a new home or a child’s college education. With enhancements scheduled for early 2009, the new Fidelity(R) Investment Rewards(R) American Express(R) Card and the Fidelity Investments 529 College Rewards(R) American Express(R) Card will be offering a new 2 percent earn rate on retail purchases.

The Fidelity Investment Rewards Card and the 529 College Rewards Card, introduced in August 2005 and January 2003 respectively, offer Cardmembers the ability to redeem points for cash back to their eligible Fidelity account or 529 account. To date, investors using these two cards have received a combined total cash reward of more than $175 million(8).