Purchasing Stocks & Bonds with Reward Cards (brokerage, fund, credit card)

[mshultz]

Is it possible? I was looking at satellite TV offers which include reward cards that cannot be used for cash or recurring payments. Is it still possible to beat the system by investing the money rather than using it to buy junk?

I won't ask about using Flexible Spending Accounts to buy stocks & bonds. Pretty sure that is not allowed.

[Southern man]

Originally Posted by mshultz

Is it possible? I was looking at satellite TV offers which include reward cards that cannot be used for cash or recurring payments. Is it still possible to beat the system by investing the money rather than using it to buy junk?

I won't ask about using Flexible Spending Accounts to buy stocks & bonds. Pretty sure that is not allowed.

https://www.fidelity.com/go/fidelity...MIjw&gclsrc=ds

The rewards are deposited monthly to your brokerage account. Its the card I use.

[jiminnm]

I think any vendor that accepts those reward cards still has to pay the transaction fee to process the payment (just as if it was a credit card). It is unlikely any brokerage is going to accept those cards and pay the associated fees. I also don't think any brokerages accept a credit card for stock purchase.

[ccm123]

I also have the Fidelity Rewards Visa card.

[ServoMiff]

Originally Posted by Southern man

https://www.fidelity.com/go/fidelity...MIjw&gclsrc=ds

The rewards are deposited monthly to your brokerage account. Its the card I use.

Eh, but that's really no different than any cash back card. You could transfer the funds you earn on any cash back card to an investment account. Fidelity's 2% award is better than most for non-category spend, and would be my daily card if I couldn't beat it with my USAA Limitless 2.5% card.

Also, that's not at all what the OP was asking, though.

They're talking about earning a "rewards card" from the purchase of a satellite - effectively a prepaid debit card that comes preloaded with the reward balance and you can spend it down like a debit/credit card.

The answer to the OP's question is that you cannot buy stocks or bonds with a debit or credit card directly, so you cannot use one of those "rewards cards" to do the same either. However, you CAN indirectly do this with a small charge. Purchase a cheap money order at Wal-mart for the amount on the card, less their fee for the MO and then you can cash that MO into a brokerage checking via mobile deposit capture and then transfer the funds to your actual brokerage account. It takes some work, but it can be done.