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According to Bankrate.com, the average contribution is .05 percent, or half a penny, for every dollar spent. For example, if you charge $1,000, the financial institution behind your Visa or MasterCard will contribute $5 to the charity linked to the card.
While the individual donation is fairly insignificant, the aggregate donations (those from other card users linked to the same charity) can definitely add up. One final point — it is important to keep in mind contributions made via an affinity card are not tax deductible.
Retirement Rewards
Rewards cards are also targeting those who are concerned with saving for retirement. Specifically, credit cards such as MBNA's Fidelity Investments card and MBNA's NestEggz.com card allow you to direct cash rewards to a retirement or investment account.
The Fidelity Investment Rewards Mastercard allows you to earn 1.5 percent on your purchases which can be credited to your Fidelity account (both taxable and non-taxable accounts, such as IRAS, are eligible). There is no annual fee for this card, but you can only earn $1,500 per year on your purchases (you would have to spend $100,000 to reach this limit).
With NestEggz, you can earn a 1 percent rebate on every purchase, and when you shop within the NestEggz merchant network your rebates are even higher, ranging from 2 percent to 20 percent for each purchase. The money you earn can then be directly deposited into your retirement account (Traditional, Roth or Rollover IRA) — balances of $25 or more are deposited monthly. While there is no annual fee and no annual maximum on the amount you can earn, your retirement account must be enrolled in the NestEggz program to be eligible for the rebates.
