Consider a Premium Cash Back Rewards Credit Card From Your Broker

  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |

Nowadays, it seems that just about every large company has hopped on the credit card bandwagon by issuing their own branded card. Normally I am quite critical of this category of cards, because the rewards are usually average, at best. However, broker affiliated credit cards to be an exception...they have higher cash back, better customer service, and the list goes on.

Off course the catch is that they want you to sign up with their brokerage account. However, most people already have accounts with these brokers through their 401K or Roth IRA plans and a simple phone call to them can confirm your eligibility for their high reward and cash back credit cards. Let's take a look at the three of the most popular broker credit cards

Total Merrill Cash Back

If you have or are looking into opening a Merrill Lynch brokerage account, you may want to consider their credit card too. The biggest perk of this card is that it gives 1.25% on virtually all purchases (vs. the average 1.00% seen on most cards). While 0.25% may not seem like much, if you funnel all your purchases through this card, over the course of a year it can really add up. It's a Visa Signature card, which is considered a notch above a platinum card. There is no annual fee and the cash back earned is deposited directly into your Merrill Lynch account.

Schwab Bank Invest First

For those investors with a Charles Schwab account, this is an even better offer than the Merrill credit card. It give an impressive 2% cash back on all purchases. There is no annual fee for this Visa Signature card, but in order to qualify, you will of course need to have a Charles Schwab account.

I was unable to find any documentation online about exactly which accounts qualify, so I called their customer service to find out. They said that any Schwab account with an 8 digit account number will qualify - which you should get with most retirement or brokerage accounts. Another good features : the accumulated cash back is deposited into your account each month, rather than just at year end.

Fidelity Investment Rewards American Express

This is another excellent rewards credit card that gives 2% cash back on purchases. How it works is that you earn points, which can then be redeemed for deposits into your eligible Fidelity account (brokerage or mySmart Cash Account). They also offer two other versions which will deposit your cash back into a Fidelity 529 college savings account or Fidelity IRA account (both of which have obvious tax benefits).

Besides the cash back, what I really like about this card is that it is an American Express, so you can expect great customer service and some added benefits you won't find on most other cards. Another perk is that there is no annual fee, which as you know is not always the case with AmEx cards. For example, the American Express Platinum carries a hefty $450 annual fee (which is worth it if you travel, thanks to the lounge access)!

Conclusion

In the credit card world, there are two types of customers. The first type are the ones that want the prestige and red carpet treatment. They are willing to shell out big bucks on the American Express Platinum, Visa Black Card, etc. in order to get it. On the other end of the spectrum, there are the financial savvy customers that want to get the most bang for their buck... the above brokerage affiliated cards definitely do that! If you're a smart investor, it makes sense to opt for the better value rather than the status symbols.

Rate this Article:
  • Article Word Count: 618
  • |
  • Total Views: 65
  • |
  • permalink
  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |
>