Christmas and the gift-giving season is usually here faster than we expect.  As you begin shopping for yourself and others, we want you equipped with the best credit card on the market.  There are many choices for each financial lifestyle stage (borrower, spender, saver) and reward goal (cash savings, college savings, travel, debt transfers) but at HIT our focus is on savers and cash back.

There is plenty of competition in the credit card market, which is a benefit to the cardholder who can seek out the best deal (or finish reading this blog post, hehe).  The competition has led to credit cards with no annual fees, and a slew of perks like airline miles, reward points, cash back, and sign on bonuses.

Credit card companies offer these incentives because they earn 2-3% each time the cardholder makes a purchase.  This 2-3% is called an interchange fee and is charged to the merchant making the sale by the credit card company.  There are other profit centers that credit card companies have, such as interest on a debt, but as savers we do not succumb to these.  Therefore, we have gone out and searched high and low for the credit card that returns most of the interchange fee back to us, the cardholder.

After researching 100’s of cards we had a tie for the top 2020 cash back credit card.  The winners are the Citi Double Cash Card and the Fidelity Rewards Visa Card.  These two cards give back most, if not all their interchange fee revenue, the incentives are straightforward, they have no annual fees, no spending limits, and the cashback is a full 2%.

Before you go out and apply, these cards are for savers who always pay off their monthly bill on time and never carry a balance. Second, these cards are simply for those of you who want to put more cash back in your pocket.  For example, if you are like me and spend $5000 month over an entire year, you’ll earn an additional $1200 from the 2% cash back!

Is 2% enough incentive for you to apply for one of these cards?  The link to each card and the highlights and drawbacks are below.

The Citi Double Cash and Fidelity Rewards Credit Card Highlights

  • 2% cash back on everything
  • No cash back spending limits
  • No annual fees
  • No rotating categories

Citi Double Cash MasterCard

  • Drawback – 3% Foreign Transaction Fee

Fidelity Visa

  • Bonus – You may be able to catch Fidelity’s sign up special that gives you $50 if you spend $500 within the first 60 days
  • Drawback – Required to have a fidelity account to receive cash back (direct deposit)

Important Reminders:
These cards are recommended only if you are a saver and always:

  • Pay on time
  • Pay off the full balance
  • Do not use for balance transfers
  • Do not use for cash advances