The end of the 2nd quarter of 2006 brings me a nice $135 deposit from my MBNA Fidelity 529 Card into my 529 account. Paying for everything humanly possible with credit cards has its rewards!*
Remember, you can take the principal for non-educational purposes out without any tax consequences or penalties, kind of like a Roth IRA. Click here for more.
* Please consume credit responsibly.
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Hey, is there any simpler way (online, perhaps) to pull money out of the Fidelity 529 other than the ol’ phone call to the CS?
Got mine as well…though my amount was half of yours 🙁
WW
Got our first deposit of $95.60 as well.
I just noticed my deposit too. I am very glad I got this card. It appears they give out disbursements of your rewards every 3 months.
Yep, they disburse every quarter automatically, if you reach $50 in balance.
Miller, you just have to fill out a disbursement request form (available online… somewhere) and mail it to them, if I recall correctly. I don’t think I called CS at all.
Do you have to use the rebate check for educational purposes?
The principal you put in? No.
The earnings on that principal? Yes.
I have updated the original post to be more clear. You must keep the paperwork for your principal deposits and withdrawals, in case the IRS comes knocking.
Any reason why the cents are blurred out in the image?
Ha, I don’t know why I did that why editing the image. Paranoid moment or something.
I have had problems updating this credit card on Yodlee for the past week or so. Has anyone else had this problem? Any ideas on how to fix it?
Is there any need to withdraw the cash rebate quickly? i.e. if you earned a $200 rebate as of January 1 of 2006 and earned, say 5% interest on it over the course of the next year, could you then withdraw $200 on January 1 of 2007 without penalty, as long as you didn’t touch the $10 in interest generated by the principal in the meantime?
Brian – It’s working fine for me on Yodlee. Perhaps it has something to do with the BofA/MBNA merger. Either way, it looks like they are upgrading to something called MoneyCenter tomorrow.
Anon – No need that I know of, besides the chance of loss if you picked a aggressive allocation for your 529. Also I suppose they could change the rules on taking out principal in the future, I’m keeping an eye on that.
The Fidelity card may make sense for some people, but state sponsored 529 plans offers tax advantages that national plans don’t. Just something to consider when funding a plan.
Yes, I’m basically using it just for the 2% cash back. You can keep this 529 open for the card, and also have other 529s that have lower expense ratios or other tax advantages.
Thanks to you. I had my 529 credit card about two months now. I used 529 CC for most of my purchase. It’s been great.
FYI:
I also used the bill pay from the their website to pay for my MGAC bank mortgage. It stated that it is a Out of Network transactions. Thus we don’t get the 2% rewards.
However, it does give us to a grace period. So, I can pay the mortgage using the credit card BILL PAY. And I will pay the credit card balace in full when the bill is due each month. Basically I delay the mortgage about 30 days, and put the money in the bank to earn extra interst. What do you think?
Just wonder do you know anyone doing this trick? thanks.
-luu