Why Retirement Savings Are Part of My Credit Card Rewards Strategy

When I earn credit card rewards, my goal is usually to redeem them for travel. I still prioritize travel, because I’m not waiting for retirement to enjoy trips. But supplementing retirement savings has become another major way I use credit card rewards.

Some credit card rewards can be deposited into brokerage accounts, which gives rewards I might otherwise leave unused a purpose in contributing to long-term goals. Valuable travel gives me experiences now, while investment rewards have the potential to grow into something much larger over time.

Here’s why I’ve started incorporating investing into my rewards strategy and the credit cards that make it possible.

Why I Look Beyond Travel Rewards

Travel rewards are incredibly valuable, especially when I can redeem them for more than 1 cent per point. But the reality is that a points balance doesn’t have any value until I use it, and that value can erode when loyalty programs raise award prices.

Cash deposits into an investment account can potentially appreciate, generate dividends, or earn interest. They could lose value, though investments have growth potential that an unused rewards balance doesn’t.

Sometimes, I accumulate points faster than I can reasonably use them. I can only travel so much, and once I have enough points and miles for upcoming plans, excess rewards are better invested than left unused in a loyalty account or redeemed for cash-back.

Vacation Now vs. Investment Later

I still use credit card rewards to make trips more affordable, but every reward I use for travel is also money or points I could potentially invest. Seeing what rewards could be worth after years of investment helps me decide what to spend now and what to save for later.

Let’s say I spend $3,000 per month on a card ($36,000 annually) and that spending earns 2% back, which I send straight to an investment account. That’s $720 in rewards each year, deposited at $60 per month. If I do that for 20 years and get an average 7% investment return, it becomes $30,452.

Likewise, a $1,000 reward could cover part of a vacation today. With an average 7% return, the investment could nearly quadruple to about $3,869 after 20 years with no additional contributions.

That math doesn’t mean investing every reward or waiting until retirement to travel. Trips are worth taking now, knowing I have the health, time, and opportunity. Instead, I view investment rewards as an extra way to contribute to retirement after I’ve checked other boxes: paying my card balances in full each statement period, maintaining emergency savings, making regular retirement contributions, and earning enough travel rewards for the trips I want to take.

Hot Tip:

Maybe you’re already considering retirement? Here are our top cards for seniors and retirees.

Amex Platinum Cards Can Turn Points Into Investments

The Platinum Card^® from American Express Exclusively for Morgan Stanley* and American Express Platinum Card^® for Schwab** earn Membership Rewards points that can be redeemed for deposits to investment accounts. That can be useful when you have more points than you can realistically redeem for travel.

Both cards have an $895 annual fee and earn rewards at the same rates as the Platinum Card^® from American Express:

• 5x on flights booked directly with airlines or on AmexTravel.com (up to $500,000 in purchases per calendar year) and prepaid hotels on AmexTravel.com
• 1x points on all other purchases

*The information regarding The Platinum Card^® from American Express Exclusively for Morgan Stanley was independently collected by Upgraded Points and neither provided nor reviewed by the issuer.

***The information regarding the American Express Platinum Card^® for Schwab was independently collected by Upgraded Points and neither provided nor reviewed by the issuer.

American Express Platinum Card^® for Schwab

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

The Amex Schwab Platinum card offers all of the benefits of the Amex Platinum card plus additional perks for Schwab customers.

American Express Platinum Card^® for Schwab

The Amex Schwab Platinum card offers all of the benefits of the Amex Platinum card plus additional perks for Schwab customers.

Welcome Offer

Earn 150,000 Membership Rewards^® points—up from the previous offer of 80,000—after spending $12,000 in purchases on your Platinum Card^® from American Express Exclusively for Charles Schwab in your first 6 months of Card Membership. Offer ends 7/8/2026. Terms apply.

150,000 points

Annual Fee

$895

Why We Like This Card

The Amex Schwab Platinum card is suited for Schwab customers who want all the benefits of the regular Amex Platinum card, along with additional benefits exclusive to Charles Schwab customers, such as the ability to invest rewards and an annual Schwab appreciation bonus.

Pros & Cons

Pros

• 5x points on flights purchased directly with the airline or with AmexTravel.com (up to $500,000 per year)
• 5x points per dollar spent on prepaid hotels booked with AmexTravel.com
• Annual and monthly statement credits upon enrollment (airline credit, Uber Cash and Uber One, Resy, lululemon credit, streaming credit, prepaid hotel credit on eligible stays, Walmart+ credit, CLEAR+ credit, and Equinox credit)

Cons

• $895 annual fee
• Doesn’t offer many bonus categories to help you earn points faster

Read Full Review

Card Highlights

• Earn 150,000 Membership Rewards^® points—up from the previous offer of 80,000—after spending $12,000 in purchases on your Platinum Card^® from American Express Exclusively for Charles Schwab in your first 6 months of Card Membership. Offer ends 7/8/2026. Terms apply.
• 5x points on flights purchased directly with the airline or with AmexTravel.com (up to $500,000 per year)
• 5x points per dollar spent on prepaid hotels booked with AmexTravel.com
• Annual and monthly statement credits upon enrollment (airline credit, Uber Cash and Uber One, Resy, Saks Fifth Avenue credit, lululemon credit, streaming credit, prepaid hotel credit on eligible stays, Walmart+ credit, CLEAR credit, and Equinox credit)
• Airport lounge access to over 1,550 worldwide lounges, including the luxurious Amex Centurion Lounges, Priority Pass lounges (enrollment required), Plaza Premium Lounges, and many more
• TSA PreCheck or Global Entry credit
• Access to Amex Transfer Partners
• Access to American Express Fine Hotels and Resorts and Amex International Airline Program
• Complimentary hotel elite status with Hilton, Leading Hotels of the World, and Marriott upon enrollment
• Excellent travel and purchase protections
• Invest with rewards and use your Amex points for deposits with Schwab to your eligible brokerage account
• Annual Schwab Appreciation Bonus: Receive a $100 to $1,000 statement credit depending on your qualifying Schwab holdings
• $895 annual fee

Financial Snapshot

• Foreign Transaction Fees: 

The Amex Schwab Platinum card offers a redemption rate of 1.1 cents per point on up to 1 million points per calendar year. Any points redeemed beyond that threshold are worth 0.8 cents per point. While 1.1 cents per point is below the 2.2 cents per point valuation Upgraded Points currently assigns Membership Rewards, investing those points could ultimately produce more value over the long term.

For example, redeeming 100,000 Membership Rewards points at 1.1 cents per point yields a $1,100 deposit with Schwab. When I don’t need the points for a high-value trip, a $1,100 investment deposit could be more useful than holding those points indefinitely for a good redemption.

The Amex Schwab Platinum card offers up to $1,000 in annual statement credit based on qualifying Schwab holdings.

The redemption value is 1 cent per point with the Amex Platinum card for Morgan Stanley, or $1,000 for 100,000 points. But cardholders with a Platinum CashPlus account can also receive an $895 annual engagement bonus deposited into their account.

Hot Tip:

Compare the Amex Platinum card to the Amex Schwab Platinum card and the Amex Platinum card for Morgan Stanley.

Fidelity’s Card Makes Investing Rewards Easy

Fidelity’s flexibility and automation make it easy to use rewards for investment. It allows deposits into brokerage accounts, including cash management, Fidelity Go, IRAs, and HSAs.

The Fidelity^® Rewards Visa Signature^® Card has no annual fee and earns unlimited 2x points on all purchases, which equals 2% cash-back when deposited into an eligible Fidelity account. It can be set up to automatically deposit cash-back into a designated Fidelity brokerage account each month once rewards reach the 2,500-point minimum.

Fidelity^® Rewards Visa Signature^® Credit Card

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

Give a boost to your savings and investment goals with the Fidelity Rewards card.

Fidelity^® Rewards Visa Signature^® Credit Card

Give a boost to your savings and investment goals with the Fidelity Rewards card.

Welcome Offer

No welcome offer available.

No offer available

Annual Fee

$0

Why We Like This Card

The Fidelity Rewards card allows you to earn 2% back on every purchase, with rewards deposited into eligible Fidelity accounts to reach your investment and retirement goals faster.

Pros & Cons

Pros

• Unlimited 2% cash-back on all purchases
• Global Entry or TSA PreCheck rewards credit
• Auto rental collision damage waiver

Cons

• No bonus categories to optimize the purchases you spend the most on

Read Full Review

Card Highlights

• Unlimited 2x points on all purchases
• Global Entry or TSA PreCheck rewards credit
• Auto rental collision damage waiver
• $0 annual fee
• No foreign transaction fees
• Travel protections, including roadside dispatch, travel accident insurance, lost luggage reimbursement, and travel assistance

Financial Snapshot

• Foreign Transaction Fees: $0

Depositing rewards into a brokerage account doesn’t necessarily invest the money, as cash can sit until an investment is selected. But Fidelity Go automated investing accounts can automatically manage and invest rewards once they’re deposited.

When paired with an automated investing account (Fidelity Go), this card offers 2% cash-back each month, and it’s totally hands-off except for spending and paying the bill. That keeps cash-back from disappearing into everyday checking account spending.

Hot Tip:

Depositing rewards into self-directed brokerage accounts doesn’t mean the money is invested. Cash sitting in a brokerage account doesn’t have the same growth potential as money in the market, so making the most of investment rewards requires an additional step: selecting an investment.

Why I Love Robinhood’s IRA Match

With 3% cash-back on all purchases, the Robinhood Gold Card is a strong earner. It has no annual fee, but requires an active Robinhood Gold membership to earn 3% back. Without the membership, it earns 1.5% cash-back. Robinhood Gold costs $5 per month ($60 annually).

Rewards from the Robinhood Gold card can be deposited into a Robinhood cash brokerage account or automatically redeemed into crypto investments.

Robinhood Gold members receive a 3% match on eligible annual Robinhood IRA contributions, compared with 1% for non-Gold Robinhood customers. Maxing out the 2026 IRA contribution limit of $7,500 would earn $225 in matching funds with Gold compared to $75 without it. Since the match doesn’t count toward the annual IRA contribution limit, it effectively increases the amount saved for retirement.

That said, the IRA match has conditions, including holding certain assets for at least 5 years and maintaining Gold membership for at least a year after receiving the match. This is more of a long-term benefit than immediate cash-back.

Hot Tip:

The upcoming Robinhood Platinum Card offers a complimentary Robinhood Gold membership, but also has a $695 annual fee. Most purchases earn 1% cash-back, but dining and flights earn 5%, and hotels and car rentals earn 10%.

Bank of America Cards Can Boost Investment Rewards

Bank of America rewards cards can meaningfully increase rewards rates for customers who keep qualifying balances with Bank of America and Merrill accounts:

• Member (no minimum): 10% card rewards bonus
• Preferred Plus ($30,000 minimum qualifying combined balance): 25%
• Preferred Honors ($100,000 minimum): 50%
• Premier ($1 million minimum): 75%

For the Bank of America^® Unlimited Cash Rewards Credit Card, which earns 2% on all purchases for the first year, the relationship bonus translates to these earning rates:

• Member: 2.2%
• Preferred Plus: 2.5%
• Preferred Honors: 3%
• Premier: 3.5%

Bank of America rewards can be deposited directly into eligible Merrill accounts, including brokerage accounts and IRAs.

How I Decide Between Travel and Investing

Instead of letting travel rewards balances grow indefinitely, I consider when it makes sense to earn travel rewards and when retirement investing would be a better option. That said, I typically use rewards for travel when:

• I have a specific trip that requires points or miles, and award availability fits my plans.
• I can get more value from travel than from cash-back.

I invest my rewards when:

• I have enough rewards available for planned travel, and rewards balances are increasing faster than I can use them.
• Cash-back would otherwise be absorbed into my everyday spending.

Usually, my strategy is to use travel cards for strong category earnings and welcome offers, and an investment card for recurring nonbonus spending, such as utilities and subscriptions.

I still calculate the value of travel rewards at the time of booking by comparing the cash price to the number of points required. Investing rewards are less predictable, as their future value depends on market performance and time. Still, investment rewards could be worth much more than the original cash-back value.

For example, redeeming 100,000 Membership Rewards points with the Amex Schwab Platinum card could generate about $2,200 worth of travel or a $1,100 investment deposit. Assuming an average annual return of 7%, that deposit could grow to approximately $4,256 over 20 years without any additional contributions — almost double the travel value.

Final Thoughts

I haven’t entirely replaced travel rewards with investments, but I’ve started assigning different rewards to different goals. Sometimes, investing rewards creates more long-term value than holding onto points indefinitely or cashing them out into everyday spending.

If I already have enough rewards for the trips I want to take, I’d rather put the rest toward my future goals. Travel rewards help me enjoy experiences now, and investment rewards give me greater security for years to come.