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For ~2 years, mine was deposited into 529, because I believed that was only option. Within the last couple years, they unveiled other versions of the card and allowed deposits of rewards into brokerage, so I switched. I left the money that was in the 529 account, but now have all my funds in the brokerage account. I have other accounts with Fidelity, so I sometimes use it for purchases, but other times I simply withdraw.

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Fidelity still offers 529 cards.

The easiest (not to think about tax implication) is redeeming to brokerage instead of 529 or IRA.

"1. Eligible registrations include all nonretirement registrations. Traditional IRA, Roth IRA, Rollover IRA, SEP-IRA, and all Fidelity-managed 529 plans are also eligible. The ability to contribute to an IRA or 529 college savings plan account is subject to IRS rules and specific program policies, including those on eligibility and annual and maximum contribution limits. Full details appear in the Program Guidelines new card customers receive with their card."

https://www.fidelity.com/cash-management/american-express-cards

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ProfessorEd said:   A question is which account to redeem to, if we have a choice.

There may be taxation implications. Usually credit card rebates are not taxed, and I presume that this is true here, at least when the funds come into Fidelity.

If it goes to a brokerage account, it appears you can withdraw the money, and it should be none taxable, and nothing is reported to the IRS. I have not tried this, so I am not certain this is true, but I believe it to be.

Depositing it to an IRA may be more complex, but for most people it is probably not taxed. However, when it comes up as a distribution I would expect it to be reported as a distribution, and to be treated as income. there may be a way to dispute this and avoid paying tax, but I am not certain it would work, and there is a good chance that years from now, you or your heirs will not think to do this, or still have the records. I believe this has been discussed above.

I have mine going to a 529 plan (actually from older Fidelity 2% cards and a Fidelity AMEX, but I don't think the rules would be different). If the 529 plan is used for eligible higher education expenses, the withdrawals would be non-taxable. This is the most likely case.

However, there could be withdrawals for other reasons, in which case a penalty tax is owed on the gain in the value of the account and this increase in value is also treated as ordinary income. Thus, it appears there is some chance that this money could be taxed.

Mine has been going to 529 plans for years, since originally I believe that was the only allowed destination for the 2% 529 plan cards (no longer issued). I believe it is now possible to change the destination and I was wondering whether it might be worth the trouble.

Fidelity has promotions for opening and funding brokerage accounts, which I may wish to take advantage of at some point (since I took one for a IRA account, I cannot do another now). In that case, there would be little work in changing the destination, and a possible tax benefit.

Note, I lack earned income so directing the credit card rebate money to the IRA would appear to not be allowed. Otherwise, a case cold be made for doing this, and then reducing contributions coming from your salary, to stay within the legal limits.

I thought I would raise theses issues here since some may not have thought of them, and there may be others who have long standing 529 plans set up to receive the rebates.
You are reading something into this that does not exist. In all cases whether deposit is to a brokerage account, an IRA, or a 529, this exactly the same as a cash rebate from another card that you deposit into a brokerage account, an IRA, or a 529.

Funds deposited to a brokerage account are not taxable. however any interest, dividends, or capital gains are.
Deductible funds contributed to an IRA are tax deductible and taxable when distributed.
Funds contributed to a 529 are tax-free for qualified distribution and the "gains" are taxed for non-qualified distributions and a penalty assessed

There is nothing unique about this card that cause any different treatment in any of these cases.

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btuttle said:   ProfessorEd said:   A question is which account to redeem to, if we have a choice.

There may be taxation implications. Usually credit card rebates are not taxed, and I presume that this is true here, at least when the funds come into Fidelity.

If it goes to a brokerage account, it appears you can withdraw the money, and it should be none taxable, and nothing is reported to the IRS. I have not tried this, so I am not certain this is true, but I believe it to be.

Depositing it to an IRA may be more complex, but for most people it is probably not taxed. However, when it comes up as a distribution I would expect it to be reported as a distribution, and to be treated as income. there may be a way to dispute this and avoid paying tax, but I am not certain it would work, and there is a good chance that years from now, you or your heirs will not think to do this, or still have the records. I believe this has been discussed above.

I have mine going to a 529 plan (actually from older Fidelity 2% cards and a Fidelity AMEX, but I don't think the rules would be different). If the 529 plan is used for eligible higher education expenses, the withdrawals would be non-taxable. This is the most likely case.

However, there could be withdrawals for other reasons, in which case a penalty tax is owed on the gain in the value of the account and this increase in value is also treated as ordinary income. Thus, it appears there is some chance that this money could be taxed.

Mine has been going to 529 plans for years, since originally I believe that was the only allowed destination for the 2% 529 plan cards (no longer issued). I believe it is now possible to change the destination and I was wondering whether it might be worth the trouble.

Fidelity has promotions for opening and funding brokerage accounts, which I may wish to take advantage of at some point (since I took one for a IRA account, I cannot do another now). In that case, there would be little work in changing the destination, and a possible tax benefit.

Note, I lack earned income so directing the credit card rebate money to the IRA would appear to not be allowed. Otherwise, a case cold be made for doing this, and then reducing contributions coming from your salary, to stay within the legal limits.

I thought I would raise theses issues here since some may not have thought of them, and there may be others who have long standing 529 plans set up to receive the rebates.
You are reading something into this that does not exist. In all cases whether deposit is to a brokerage account, an IRA, or a 529, this exactly the same as a cash rebate from another card that you deposit into a brokerage account, an IRA, or a 529.

Funds deposited to a brokerage account are not taxable. however any interest, dividends, or capital gains are.
Deductible funds contributed to an IRA are tax deductible and taxable when distributed.
Funds contributed to a 529 are tax-free for qualified distribution and the "gains" are taxed for non-qualified distributions and a penalty assessed

There is nothing unique about this card that cause any different treatment in any of these cases.

Thanks, I now think you re right.

If I got $500 in cash from a card it would be non-taxable. If I put it into the 529 plan, the contributions to the 529 plan go up by $500, and the amount that would be taxed if there wss a non-qualified distribution does not increase.

However, if the $500 goes directly to the 529 plan,the 529 plan records show the contribution of $500, and if I make a non-qualified distribution, the amount is unchanged.

Thus, the issue of where to send the funds becomes one of convenience (do you need to set up a new account to receive the funds), and how generously you wish to fund your 529 plan, or plans.

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vagrants said:   Does Fidelity read this thread? I now see online check redemption option.

Which specific card do you have which now gives you this option, or does it not matter? https://www.fidelity.com/cash-management/american-express-cards

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slomo007 said:   vagrants said:   Does Fidelity read this thread? I now see online check redemption option.

Which specific card do you have which now gives you this option, or does it not matter? https://www.fidelity.com/cash-management/american-express-cards


Mine is Fidelity® Investment Rewards American Express® Card, but I don't think card type matters. Plus, I have no intention of doing "check" route, so I don't know the redemption rate....worst case scenario, you might have to do the 250,000 pts for $250 anything else won't get you 2%.

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Does this card have any foreign transaction fee? Also is there any iOS app that lets you see your charges and statements?

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Satriani said:   Does this card have any foreign transaction fee? Also is there any iOS app that lets you see your charges and statements?
There is a 1% foreign transaction fee. There's a Fidelity app, but it will only show the balance, payments, and rewards for the card. I recommend Check (formerly PageOnce) for the information you're interested in.

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Woot woot! Finally joining the team!

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Is this eligible for all AMEX benefits and promos like merchant credit rebates, or does being a FIA card affect its perks vs. a regular AMEX?

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Satriani said:   Is this eligible for all AMEX benefits and promos like merchant credit rebates, or does being a FIA card affect its perks vs. a regular AMEX?

No, it is not eligible for $15 statement credit with $75 spent @ WM.

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vagrants said:   Satriani said:   Is this eligible for all AMEX benefits and promos like merchant credit rebates, or does being a FIA card affect its perks vs. a regular AMEX?

No, it is not eligible for $15 statement credit with $75 spent @ WM.

It might be through the Twitter sync. I know I used mine last year for Small Business Saturday last year, so the promos offered outside of americanexpress.com are probably all fair game.

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It worked for NYC Restaurant Week promos.

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Mine worked for the Twitter Sync deals and Small Business Saturday, so it should work for all regular Amex promotions.

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For those with both the AmEx and Visa Fido cards from FIA, the ones that allow you to transfer points between the cards. I noticed last month the web site now allows you to enter the number of points to transfer between cards, instead of listing them in 2500 increments, so the minimum to transfer between cards is now 1. Great if you're like me and put little on your Visa but always get 5000+ points on your AmEx each month.

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stanolshefski said:   vagrants said:   Satriani said:   Is this eligible for all AMEX benefits and promos like merchant credit rebates, or does being a FIA card affect its perks vs. a regular AMEX?

No, it is not eligible for $15 statement credit with $75 spent @ WM.

It might be through the Twitter sync. I know I used mine last year for Small Business Saturday last year, so the promos offered outside of americanexpress.com are probably all fair game.


Nice! Hack through the twitter sync. Hope they don't catch up on this hack.

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AverageGuy09 said:   For those with both the AmEx and Visa Fido cards from FIA, the ones that allow you to transfer points between the cards. I noticed last month the web site now allows you to enter the number of points to transfer between cards, instead of listing them in 2500 increments, so the minimum to transfer between cards is now 1. Great if you're like me and put little on your Visa but always get 5000+ points on your AmEx each month.

Where can you do this? I looked on the FIA site (where you pay the card) and the worldpoints site and couldn't find a transfer link. Mine automatically sweeps to my fidelity every month but I acrue points in the visa much more slowly than the amex.

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bluegreenturtle said:   AverageGuy09 said:   For those with both the AmEx and Visa Fido cards from FIA, the ones that allow you to transfer points between the cards. I noticed last month the web site now allows you to enter the number of points to transfer between cards, instead of listing them in 2500 increments, so the minimum to transfer between cards is now 1. Great if you're like me and put little on your Visa but always get 5000+ points on your AmEx each month.

Where can you do this? I looked on the FIA site (where you pay the card) and the worldpoints site and couldn't find a transfer link. Mine automatically sweeps to my fidelity every month but I acrue points in the visa much more slowly than the amex.


Don't go to WorldPoints Rewards | Home. Stay in the FIA site. Click "Rewards" tab, if you click the tab, "Transfer Points" is right underneath the "Rewards" tab.

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vagrants said:   bluegreenturtle said:   AverageGuy09 said:   For those with both the AmEx and Visa Fido cards from FIA, the ones that allow you to transfer points between the cards. I noticed last month the web site now allows you to enter the number of points to transfer between cards, instead of listing them in 2500 increments, so the minimum to transfer between cards is now 1. Great if you're like me and put little on your Visa but always get 5000+ points on your AmEx each month.

Where can you do this? I looked on the FIA site (where you pay the card) and the worldpoints site and couldn't find a transfer link. Mine automatically sweeps to my fidelity every month but I acrue points in the visa much more slowly than the amex.


Don't go to WorldPoints Rewards | Home. Stay in the FIA site. Click "Rewards" tab, if you click the tab, "Transfer Points" is right underneath the "Rewards" tab.



Hmm, interesting, mine has that button on my AMEX but not on my VISA.

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bluegreenturtle said:   Where can you do this? I looked on the FIA site (where you pay the card) and the worldpoints site and couldn't find a transfer link. Mine automatically sweeps to my fidelity every month but I acrue points in the visa much more slowly than the amex.
When you select the specific card from the main page, you'll get a list of tabs (Snapshot, statements, etc). Click the Rewards tab. Inside that tab at the top in a fairly light font is a set of links "Overview | History | Earn Points | Transfer Points". Click the "Transfer Points" and it will take you to a page where you can enter the card number you want to transfer from. You have to enter the full card number (16 for Visa, 15 for AmEx) you want to transfer from. It will list the points you can transfer.

Normally once I've done this I have to logout and log back in to get the rewards page to refresh with the new points total. Then I do a manual redeem to my MyCash account for all the points between the 2 cards.

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bluegreenturtle said:   Hmm, interesting, mine has that button on my AMEX but not on my VISA.
What Visa card do you have? Some of the early ones had a slightly different program and don't allow point transfers. I opened both of mine in 2009 and have been doing point transfers between them for years. It's just in the last month or two that they switched from 2500, 5000, 7500, etc at a time to any amount. If your Visa is older or one of the original full 2% Visa cards, I don't think it will let you transfer to the AmEx because the point structure is different somehow.

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Yes, I've had it for a long time - can't remember when i got it but it was 2007 or earlier.

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I am thinking about getting this card as a good "everyday" use card. From what I read so far, the reviews aren't bad except for the account closures. I am hoping that if I get this card and open a cash management acct just for CashBack that they won't drop me since I have another acct with them.

Can someone give me an idea of credit score that they look for?

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I recently applied with my 763 score and was given a 7k line.

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Not sure if it has been asked already, but I have had the 1.5% rewards card for several years. Is it automatically upgraded to 2% rewards?

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Squeezer99 said:   Not sure if it has been asked already, but I have had the 1.5% rewards card for several years. Is it automatically upgraded to 2% rewards?
Isn't the 1.5% card a Visa? They are separate cards and you won't be upgraded.

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Squeezer99 said:   Not sure if it has been asked already, but I have had the 1.5% rewards card for several years. Is it automatically upgraded to 2% rewards?

Short answer: No.

Longer answer:
I had the old 1.5% Visa once upon a time. Then I went to the Schwab 2% and the 1.5 went to the sock drawer. In that time the 2% visa, 1.5% on the first $15K of annual spend card came out (in effect a 2% card with an $75 AF, 15K * 0.5%). After the Schwab card was killed, I called and asked to product change to the 2.0/1.5 Visa, denied, had to do a fresh app. I did this and closed the 1.5% Visa.

About that time I noticed all the action was in sign on bonuses, and now I do that.

The Visa product is different than the Amex product (which was always 2% IIRC).

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Is there any way to get Fidelity to stop mailing me deposit slips every month?  I will never use them.

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Data point on the credit line for this card. I recently got my Fido Visa bumped up to a 100k credit line (from 50k) last month - they were pretty cool about it. No begging or groveling was required like with some other banks.

It took about 10 mins on the phone - they asked several standard financial questions such as household income/total liquid savings/duration of employment, she looked at my BofA bank account balances then and ran a credit check. There was no tax returns or verification of income required. I was honest about everything, but I would suspect that you could fib to get your credit line up on this card.

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qcumber98 said:   Is there any way to get Fidelity to stop mailing me deposit slips every month?  I will never use them.
  Fidelity deposit slips are coming from Fidelity, not FIA or this credit card.  Just call Fidelity and tell them what you (don't) want.  They are very pleasant to deal with. 

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cdancer20 said:   I am thinking about getting this card as a good "everyday" use card. From what I read so far, the reviews aren't bad except for the account closures. I am hoping that if I get this card and open a cash management acct just for CashBack that they won't drop me since I have another acct with them.

Can someone give me an idea of credit score that they look for?

  The account closure was reported for the $25,000+ on the Fideilty part to get "free" airline miles or hotel points or whatever.

Check the "creditpull" on another forum.

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I think the report of account closure was a one off situation.

Getting almost $1k/month in rewards only to ACH it all out and not doing any real business with them will probably get anyone in trouble after a while.
Coupled with the opening of the account with 50k+ only to withdraw the whole amount just shows that one isn't interested in doing 'business' with them so they decided they'd return the favor. I think ACHing $$$ out would not be an issue if you had some investments with them and made new ones ever so often.

This is a great card to have. I'm doing both contributions and ACHing out.

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I got am amendment to my credit card agreement today. Cash Advance fee is now 5%, and they specifically list that it applies to "cash equivalents".
Nothing else to note in the amendment. Don't have the previous terms to know if they listed cash equivalents as a cash advance or not, but I assume they did.

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imbatman said:   I got am amendment to my credit card agreement today. Cash Advance fee is now 5%, and they specifically list that it applies to "cash equivalents".
Nothing else to note in the amendment. Don't have the previous terms to know if they listed cash equivalents as a cash advance or not, but I assume they did.


Don't worry about the use of the term cash eq. as it relates to churning. To them (and as far as they cash see) CE is limited to CAs at a bank (in branch, ATM and probably online for GCs), courtesy checks and transfers to checking accounts (unless a promo waives the fee).

CEs do not mean retail bought reloads, GCs or MOs (if you are luckily enough to have that option).

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I funded a new bank account and did not receive any fees. The new bank account seems to have classified it as a purchase. (They limited the amount you could charge to a credit card and the option is only available for new accounts). I doubt that cash advances on the credit card are that popular, except for emergency use when traveling, etc. Still, 5% seems steep.

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I received the same letter that iambatman mentioned-- it specifies under "cash equivalents" that "person-to-person money transfers" will be subject to the 5% fee. Might that include AP?

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if person to person payments count, then person to business payments should count too!
corporations are people too, my friend!
we can't pay anybody no more.

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Can someone confirm if this card offers purchase protection:
90 day breakage warranty
Doubles manufacturers warranty for up to a year
etc.

I need a replacement card for my amx blue card - but don't want to give up the purchase protection.

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KYBOSH said:   
imbatman said:   I got am amendment to my credit card agreement today. Cash Advance fee is now 5%, and they specifically list that it applies to "cash equivalents".
Nothing else to note in the amendment. Don't have the previous terms to know if they listed cash equivalents as a cash advance or not, but I assume they did.

Don't worry about the use of the term cash eq. as it relates to churning. To them (and as far as they cash see) CE is limited to CAs at a bank (in branch, ATM and probably online for GCs), courtesy checks and transfers to checking accounts (unless a promo waives the fee).

CEs do not mean retail bought reloads, GCs or MOs (if you are luckily enough to have that option).

According to the credit card agreement from FIA, cash advance means the use of your account "for a loan obtained": at an ATMby a transfer of funds to a deposit account initiated by FIA at your request; at any financial institution to obtain cash, money orders, wire transfers, or travelers checks; by a same day online funds transfer to a deposit account, and at any non-financial institution (to obtain cash, e.g., Western Union or Moneygram registers, or at casinos); to buy "cash equivalents" (e.g. foreign currency, money orders, and travelers checks from a non-financial institution, person to person money transfers, bets, lottery tickets, bail bonds, casino gaming chips); for any payment made to FIA that is returned to FIA for any reason, including the related interest charges. Cash advances" include the transaction fees associated with the cash advance or cash equivalent. Both CA or CE and the associated transaction fees are considered CA for interest calculations.
    MCC such as 4829, 6010, 6011, 6012, 6050, 6051, 6529, 6534, 7995 are definitely considered "Cash Advances".
Source (2009): http://www.federalreserve.gov/CreditCardAgreementsContent/creditcardagreement_514.PDF  . Similar agreement is at Barclays: Barclays Standard Credit... 
Also, discussed here: Beware of Cash Equivalent...    and New BOA terms: person-to-person...

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I didn't see this mentioned anywhere else, so I thought I'd bring it up:

I just recently applied, and activated my card about a week ago.  When I spoke to the rep, he said that as a bonus, if I spend $500 on retail purchases within the first 60 days, I'll get a 5,000 point bonus.  I just called back today to confirm, and the second rep agreed, but he said I had 90 days..  I'll keep my expectations at a reasonable level as to whether it will actually happen or not, but just a heads up for new appliers.

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