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A lot of readers send me email regarding the “Best Cash Back Credit Card”. Most credit cards offer 1% cash back but only a few credit cards are still offering 2% cash back without any restrictions. But the Fidelity Rewards American Express Cards are the only credit card that I will recommend to you. (Yes, I know that Orchard Bank credit card or Household Bank credit card are offering 2% cash back but their credit limits are too low!) There are three versions of this credit card. Most people will go to the Fidelity^® Investment Rewards American Express^® Card. If you are a college student, then you can also consider the Fidelity Investments 529 College Rewards^® American Express^® Card. Others might want the Fidelity^® Retirement Rewards American Express^® Card.

Main features of this credit card:

Different versions of this credit card need to be linked to different Fidelity accounts to be eligible to get the 2% cash back.

Customers earn 2 points for each $1 in net retail purchases. Once you reach 5,000 points, they can be redeemed automatically or on demand for cash at a 1% exchange rate into an eligible Fidelity account (i.e. 5,000 points = $50 deposit). 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.

I receive a post card from American Express which indicates that I could earn 25,000 bonus American Express membership rewards points for opening an account at Fidelty and make required deposit. I think this is a good chance to earn membership points which only requires an easy transfer of your money to Fidelity account and then you can close it after you get the bonus points.

The massage on the post card is very short:

Earn 25,000 membership rewards bonus points from American Express when you invest $50,000 or more in a new Fidelity non-retirement brokerage account before May 1, 2009.

To open your account, go to Fidelity.com/bonuspoints, or call 800-814-5165.

Fine print:

Bonus points offer valid 10/15/08-9/30/09. To be eligible to earn Membership Rewards bonus points, you must be enrolled in the Membership Rewards program (”Program”) at the time of registration for the offer. Offer available to individuals who open a retail Fidelity brokerage account and who meet the following eligibility requirements. New accounts must be opened within 30 days of registering for the offer. Initial and subsequent deposits totaling $50,000 must be made within 90 days of Fidelity account opening to qualify for bonus points. Your Fidelity account must remain open with the qualifying funding for six months from the date that the qualifying assets are first received in the eligible account. Offer is not transferable or valid in conjunction with any other Fidelity promotional offer. Bonus points will be credited to your Program account within 10-12 weeks of the qualifying activity. Individual terms and conditions, as well as annual Program fees, apply for certain American Express Card products. For more information on the Program, visit membershiprewards.com/terms or call 1-800-AXP-EARN. Bonus ID-1785.

I remember that Fidelity offered bonus AAdvantage Miles and Unites Airline Miles for opening eligible accounts at Fidelity. My friends have already opened an account at Fidelity and got the bonus miles. If you do have an account at Fidelity and want to earn some bonus points from American Express, this is a good opportunity for you.

Fidelity Investments, the No. 1 provider of Individual Retirement Accounts (IRAs), partnered with Bank of America to launch a new credit card product—the Fidelity Retirement Rewards American Express Card. Fidelity currently has two credit cards: Fidelity 529 College Rewards American Express Card and Fidelity Investment Rewards Visa Signature Card with WorldPoints Rewards. The new credit card is a great choice in the credit card market.

The Fidelity Retirement Rewards American Express Card is claimed to “give investors an innovative way to save for retirement while purchasing everyday necessities”. This new credit card product is offering a 2 percent earn rate on everyday purchases when Cardmembers redeem their cash rewards as a current year contribution into their Fidelity IRA.

Features of this credit card:

• Turn 2% of purchases into a contribution for your Fidelity IRA
• No limits on cash rewards
• No annual fee

Here is how the Fidelity Rewards Card works:

• You’ll earn 2 points for each $1 you spend on purchases.
• Reach 5,000 points after you make $2,500 in purchases and $50 can be automatically swept into your Fidelity IRA as a current year contribution or other Fidelity account.
• Enjoy more flexibility with additional WorldPoints rewards options, including travel, merchandise, travel, and other rewards.

This is a really great credit card if you have a Fidelity IRA account. Combine the Fidelity Retirement Rewards Card with the tax-advantaged benefits of the Fidelity IRA, you can really save a lot of money. The Fidelity 529 College Rewards American Express Card and Fidelity Investment Rewards Visa Signature Card with WorldPoints Rewards are rated as the top 5 credit cards by SmartMoney.com in 2006. Thus this new credit card is really promising.

This new credit card is accepting applications now via www.fidelity.com/retirementrewards. Or you can call 866-598-4971 and mention priority code FAC5D2.

Fidelity Investments is one of the world’s largest providers of financial services, with custodied assets of nearly $2.7 trillion, including managed assets of over $1.2 trillion as of October 31, 2008. Fidelity offers all kinds of financial services to American people. Fidelity is the largest mutual fund company in the United States.