Deal of the Day: Cash-Back Cards

Posted on 31. Jan, 2006 by in Saving & Investing

If you’re in the market for a new credit card – and the thought of cash back on your purchases makes you as giddy as a schoolgirl then this post is for you. recently launched a card advertising “America’s Highest Cash Back Card” at 1.25% back on all purchases.

Fidelity Investments rolled out its “Investment Rewards” card, which yields 1.5%. That card is actually bested by another Fidelity card, which gives back 2%.

Bank of America also has a card that offers 2% cash back.

Too bad the most lucrative cash-rebate cards aren’t actually that simple. Some require an open savings account with the company (sometimes as much as $10,000). Some require that the “cash back” be deposited into the account you have with the company. Some only give you the full percentage once you’ve spent a certain amount (such as $50,000).

And, as always, paying interest on the card wipes out any benefits. So when shopping for cash-back or rebate credit cards be sure to do some comparison shopping and be sure to read the fine print.

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