Fidelity 529 Rewards Credit Card
Filed Under 529 Reward Credit Cards · Tagged:
Understanding the MBNA credit 529 card is quite simple: Use the card and get 2% of eligible purchases automatically deposited into one of three 529 plans managed by Fidelity Investments. There are no complicated tiered rebate structures to monitor, no brand-specific rebate variations - just a flat 2% on pretty much everything you buy with the card. A few obvious exclusions (e.g. no rebates on ATM advances, balance transfers or credit card fees) do apply, but these are standard with all rebate cards.
The Fidelity/MBNA 529 Card pays this rebate on up to $75,000 of purchases ($1,500 maximum rebate) made in any 12-month period. Competing 529 reward cards typically pay 1% unless you buy from "partner" merchants in which case the reward levels are higher. The very generous 2% reward level coupled with the high annual rebate cap make this one of the best reward credit cards anywhere.
| Basic Rebate: 2% of Eligible Purchases | Maximum Yearly Rebate: $1,500 |
| Other Rebates: None | Grace Period: 25 Days |
| Annual Fee: None | APR (Purchases): 12.99% |
|
529 Plans: Limited to Plans Offered Through Fidelity |
Minimum Rebate Transfer: $50.00 |
| Transfer Frequency: Quarterly | Cash Withdrawals Permitted?: No |
| Can Others Direct Contributions?: Yes | Issuer: MBNA |
There are some drawbacks. One, the 12.99% APR is high compared to other 529 credit card offers. This won't be an issue, though, if you're a prudent user and pay the outstanding balance in full each month. (On the plus side, the grace period for paying balances in full without finance charges is a relatively generous 25 days.)
A second, shortcoming is the limited selection of [tag]529 Plans[/tag] for investing reward dollars. Understandably, you are required to use 529 plans offered through Fidelity Investments - the card sponsor. All three 529 options are regarded well, but more choices would be nice. You should be aware that account management fees may be assessed to your Fidelity 529 account. These fees are waived if you set up automatic contributions to the account (in addition to the rewards).
Finally, power users of Microsoft Money or Quicken will be disappointed to know that MBNA does not presently support daily download of transaction data.
Summary: Despite these shortcomings, the generous rebate terms of the Fidelity/MBNA 529 College Rewards card make it the best credit card choice for families seeking to maximize college savings.