Credit Cards

Schwab Invest First 2% Cash Back Card Officially Dead

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Last updated on October 31, 2019

Now that the Schwab Invest First 2% Cash Back credit card is officially closed, consider one of the alternatives below.

Owners of the very popular Schwab Invest First Visa credit card, which offered 2% cash back on purchases deposited directly into a Schwab account, have started receiving word that their favorite card will be converted to another offer. The card has been closed to new applicants for some time, and when a card stops soliciting new customers, it’s usually a good sign that demise for current cardholders is imminent. Many Consumerism Commentary readers over the past few years have written in to sing praises about this card in comparison with other cash back credit cards.

Bank of America, the bank that has been operating the cards with the Schwab branding, is offering current cardholders a choice between the BankAmericard Privileges Card or the BankAmericard Cash Rewards Card. The Privileges Card offers bonus cash back when linked to a Merrill Lynch account, while the Cash Rewards Card offers up to 3% cash back in certain categories, with a maximum.

Cardholders will have until late October to make their decision.

If the Bank of America options do not interest you, after considering the effect to your credit score, you may want to replace the Schwab Invest First card with a brand new credit card. Today, a number of issuers are willing to pay bonuses for customers who switch.

Chase Freedom® Visa – $200 Bonus Cash Back. With the Chase Freedom Visa – $200 Bonus Cash Back Credit Card, cardholders can earn up to 5% cash back on rotating categories throughout the year.

The cash back bonus is subject to a maximum, but with a $200 bonus for signing up and spending $500 on the card during the initial three months, you could walk away with more cash at the end of the year than sticking with the two Bank of America choices.

Citi® Dividend World MasterCard®. Like the Chase card above, the Citi Dividend World MasterCard offers 5% cash back on rotating categories and 1% cash back on all other purchases. New cardholders who spend $500 during the first three months qualify for a $100 cash back bonus.

Check the Citi website for the latest categories qualifying for the 5% this quarter. Compare it with the Chase offer and your anticipated spending to determine which offer would result in the most cash back.

Here are reviews of the best cash back credit cards. The others don’t reward you for being a new customer, but they might have higher cash back categories such as 3% or 2%. If your expenses are focused in these categories rather than the categories that offer the 5% cash back in the above cards, you may be better off by taking advantage of that offer rather than the above.

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