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 for full purchases and then viewing rebates for 529 college savings accounts.
Note for 529 Rewarded Credit Cards [19659003] If you cannot pay your full monthly balance each month, you will not benefit from the 529 Rewards credit card. The interest you pay on the card is almost always higher than the rebate amount you get for the balance from one month to the next.
Although the 529 Reward credit card requires that you place your credit card account with a specific 529 plan, others allow the cardholder to designate 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 No Annual Fees
Fidelity 529 Academy Rewards Card: This MBA card offers all 2% rebates to be purchased through MBNA. 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. This card can earn up to $300 a year. When you use a Citi Upromise card at a specific location, including Mobil and ExxonMobil, you will receive a 2% purchase amount in your rebates, and there will be no annual ceiling; shopping at grocery stores and drug stores will be 10% full. No annual maximum rebate. 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 from 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 required. 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, you can also use a credit card to help you deposit funds into an investment plan or a 529 plan.
The credit card rebates of the 529 plan are considered the same direct cash donations, which means that you will treat them as gifts in terms of taxation. You can deposit $12,000 per year into the 529 plan, so credit card rebates won't cause problems for most families
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Orignal From: Plan 529 credit card
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