529 Reasons to Use PlasticMarch 6, 2005
Here's a random tip I've been wanting to share. If you have children and are constantly looking for ways to save for their college education, Fidelity and MBNA offer a great tool. If you start a 529 College Savings Account for your child with Fidelity, you can get a MBNA MasterCard that earns 2% on all your purchases. In other words, 2% of everything you charge is automatically invested in the college fund each quarter.
If you use your credit cards for everything, but pay them off every month, this is an awesome way to save a little bit more for college. As tempting as the air miles, Amazon dollars, Starbucks points, and other offers are (I know, we use most of them) there is something particularly satisfying about adding to the college fund for free. Also, many other reward programs only earn 1 or 1.5 percent.
The yearly maximum is $1500 and other people (presumably relatives) can sign up for the same card and link it to your child's 529 fund. Very cool!