The 529 plan is a savings plan that is used to save the cost of future universities and provide various tax benefits that are superior to other forms of savings. It makes sense that families with children choose to use credit card rewards with the 529 plan. This bonus credit card is best suited for cardholders using 529 reward cards to complete all purchases and then watch the rebate for 529 college savings accounts.
Notes for 529 Rewarded Credit Cards
If you can't pay off your monthly full balance every month, you won't benefit from a 529 Rewards credit card. The interest you pay on the card is almost always higher than the amount of rebate you earn from your balance from one month to the next.
Although the 529 Rewards Credit Card asks you to associate a credit card account with a specific 529 plan, others allow the cardholder to design any investment account to deposit the rebate. If you do not have children or are unsure if your child wants to go to college, you may decide to deposit your rebate in another investment account.
Most Popular 529 Rewards Credit Cards Without Annual Fee
Fidelity 529 Academy Rewards Card: This MBA card offers all 2% rebate purchases. Use this card to earn up to $1,500 a year. Your credit card discount will be automatically credited to the 529 program managed by Fidelity. People living in New Hampshire, Delaware, Arizona, and Massachusetts are currently eligible to receive the [1945900] Fidelity 529 University Awards Card.
Citi Upgrade Credit Card: Issued through Citibank, this credit card offers 1% rebate on all general purchases. The maximum amount of money you can use for this card is $300 per year. When using a Citi Upromise card at a specific location, including Mobil and Exxon, you will receive a 2% discount rebate with no annual maximum limit; grocery stores and pharmacy purchases are 10% full, with no annual rebates. You can connect your Citi Upromise credit card to any 529 plan managed by Upromise Investments Inc.
GHESP / Futuretrust MasterCard: Issued by Juniper Bank and managed by TIAA-CREF, this credit card offers 1 Percentage rebate for all regular purchases, no annual maximum rebate. Most people link their cards to the Georgia 529 program, but you can also use Futuretrust's own-brand credit card and link it to almost any investment or bank account to get your rebates.
BabyMint College Savings Card: Issued by MBNA this credit card offers a 1% rebate with no maximum limit. You can associate your credit card with any 529 plan or investment account and automatically deposit the rebate.
In today's economy, using a credit card is almost necessary. If you are disciplined and can settle your balance in full every month, it's a good idea to use 529 or one of the investment plan rebate credit cards to help your spending work. If you have to spend money, then you'd better use a credit card to help you deposit funds into an investment or 529 plan.
The credit card rebates of the 529 plan are handled in the same way as direct cash transactions, which means that you will treat them as gifts on taxation. You can deposit $12,000 to 529 plans each year, so rebates from credit cards will not cause problems for most families.
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Orignal From: 529 plan credit card
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