New Fidelity Credit Card Hopes To Boost Retirement

Boston-based Fidelity Investments is out with a credit card today where cash back rewards go straight into customers' retirement savings.

WBUR's Curt Nickisch reports.

The new Fidelity Retirement Rewards Card offers two percent back on retail purchases. That money counts as a current year contribution to an IRA. John Ragnoni is Fidelity's senior vice-president for retirement products. He says the card is not designed as a substitute for regular contributions:

RAGNONI: Most Americans know that they should be saving more. This is just another way to help them along the path.

Fidelity is partnering with American Express to offer the credit card. If users hit the federal limit for an IRA account in a given year, they can roll the rewards over to the next.