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Citi UPromise Platinum Select MasterCard
Annual fee: NoneAPR: 12.99%
Default rate: 30.99%
Grace period: 20 days
How it works: Citibank deposits at least 1% of your purchases into the 529 plan of your choice. The reward rate for gas purchases is 2% and the rate for certain grocery and drug store items is up to 10%. The credit card and applicable retailer-issued loyalty cards must be registered at UPromise.
Limit: $300 a year for regular purchases; no limit on selected grocery and drug purchases
The catch: The default rate is severe and the grace period is short, so people who occasionally space on paying their credit card bills shouldn't apply. Also, some people feel weird about registering credit cards and retail loyalty cards at a third-party Web site like UPromise, which shares information about customers with its affiliates (unless the customers specifically opt out).
A good match for: Non-Fidelity 529 plan savers who have read UPromise's privacy policy and who don't charge more than $30,000 a year.
Stockback Visa Credit Card from MBNA
Annual fee: NoneAPR: 9.9%
Default rate: 19.99%
Grace period: 25 days
How it works: The tiered rebate schedule depends on your monthly spending: 0.5% for the first $1,500 spent, 1% for the next $1,499, 1.5% for the next $2,000 and 2% for amounts over $5,000; no rewards for spending over $6,000 a month. Stockback deposits rewards in an investment account of your choice.
Limit: $120 a month
The catch: Unlike most tiered rebates, which are based on annual spending, this convoluted plan starts over every month. Your effective rebate rate, if you hit the $6,000 monthly maximum, is 1.21%; if you spend much more or much less, your effective rate drops precipitously. Also, Stockback is run by the same company that runs BabyMint and NestEggz, so you'll want to read the privacy policy and be prepared for targeted advertising by affiliates.
A good match for: Those who spend between $5,000 and $6,000 a month. Lighter spenders are probably better off in a regular cash-back card that gives you at least 1% on all purchases; bigger spenders might want to check out American Express One or NestEggz (below).
NestEggz Platinum Plus MasterCard from MBNA
Annual fee: NoneAPR: 9.9%
Default rate: 19.99%
Grace period: 25 days
How it works: NestEggz offers 1% rewards on purchases (and 3% on gas until Dec. 31, 2005) to be deposited in the retirement account of your choice.
Limit: None on regular purchases, $3 a month on gas
The catch: Like Stockback and BabyMint, the NestEggz program shares aggregated, non-personally identifiable information with affiliates so they can market their products to you.
A good match for: Those looking to boost their retirement savings and big spenders who aren't Fidelity customers and who want a MasterCard rather than an American Express.
Citi Home Rebate Platinum Select MasterCard
Annual fee: NoneAPR: 13.99%
Default rate: 30.99%
Grace period: 20 days
How it works: Citibank applies 1% of purchases toward the mortgage of your choice.
The catch: The short grace period and high default rate can be a trap for folks who aren't diligent about paying on time. Also, most people have better uses for their money than paying down a low-rate, potentially tax-deductible mortgage.
A good match for: People who have already paid off all their other debt, met their retirement and other savings goals and still want to reduce their mortgages.
Liz Pulliam Weston's column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board.
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