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Tuesday, February 17, 2009

Reward Cards May Help You Save.


CNNMoney.com posted an article today "New reward cards make it easier to Save."

There are a lot of rewards cards from Discover's 1 % unlimited cah back to American Expresses Delta Skymiles credit card.

As we reported before Americans are saving more. Even in these tough times, savings requires a fair amount of self discipline. With all the means of saving out there such as 401k paycheck deductions, socking away money can still be excruciatingly difficult.

Here's a look at some the new reward cards out there:

Wells Fargo Home Rebate Card- Allows users to earn 1% back on purchases and there is no cap on the amount you earn. But the rebate doesn't result in cash in your wallet; instead, it's paid in$25 increments toward the loan principal on most Wells Fargo Mortgages.

Fidelity Retirement Rewards or the 529 College Rewards American Express Cards: You earn 2% cash back on purchases with no cap, but the money must be deposited into a Fidelity IRA or 529.

Schwab Bank Invest First Visa Credit Card-Offers 2% cash back on purchases. This one has no cap either, but you get your cash back at the end of the month, no matter how much you've spent. With one catch. The money is deposited into a Schwab One Brokerage account. The good new, as you know we like good news around here, is this investment account is completely free as long as it's linked to your card, so there are no monthly service charges or minimum balance requirements.

Of course these cards are NOT a license to spend money just to save. The interest rates, which are from 10 to 22% can be steep. So, if you're not paying your balance off every month, forget it. But if you charge only what you can payoff every month and don't carry a balance then 2% back is a nice little bonus.

2 comments:

Anonymous said...

yes, it's cool, and useful for me
Fidelity 401k

Anonymous said...

Yes, it's cool, and useful for me
Fidelity 401k

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