After ending its 12-year partnership with American Express and Bank of America, Fidelity Investments has announced a new card-issuing alliance with U.S. Bank and Visa.
According to the new agreement, U.S. Bank will issue the Fidelity Rewards Visa Signature Card and the Fidelity Investments 529 College Rewards Visa Signature Card.
Cardholders can get unlimited 2% cash back without any fees, caps or categories when directing rewards into eligible Fidelity accounts.
The news cards will be issued with chip technology for security. They also provide access to digital wallets, including Apple Pay, Samsung Pay and Android Pay.
Fidelity’s retail brokerage business president Ram Subramaniam said: "Customers using Fidelity’s 2% cash back credit cards have earned more than $1 billion in cash rewards since 2003, demonstrating that the opportunity to use everyday spending to help bolster contributions for longer-term savings and investment goals is too good to ignore."
Visa president Ryan McInerney said: "We are excited about Visa’s expanded agreement with Fidelity Investments and U.S. Bank, and how together we will bring cardmembers convenient, innovative and secure ways to pay while helping them earn rewards to help fund life’s most important milestones."
U.S. Bank has also signed an agreement to acquire Fidelity’s existing co-brand credit card portfolio worth about $1.6bn in associated balances.