If you choose to sign up for one of these retirement rewards credit cards, it is critically important to keep track of the money being credited to your account as well as the money you deposit directly to ensure you do not exceed maximum allowable contribution to an IRA account ($3,000 in 2004).
Brokerage Firms
This past spring, Merrill Lynch entered the credit card business with the Merrill+ Visa, joining another brokerage firm, Smith Barney, which offers a Platinum Select Mastercard through Citibank. There is no annual fee for Merrill+ Visa, and the current interest rate is 5.9 percent.
Cardholders earn one point for every dollar charged and points are redeemable for airline flights, hotel stays and more. The benefits are tiered according to the amount spent with "+Benefits" available to all cardholders, "+2 Benefits" for those who spend $20,000 or more each year and "+3 Benefits" for those charging $50,000 or more each year. The Merrill+ Visa is primarily targeted toward current Merrill clients, but others can apply for it too.
Notable Statistics
Thirty-six percent of consumers have had a rewards card for at least five years, but half of them have never actually cashed in their points or miles for a reward, according to Maritz Loyalty Marketing.
