rescueme
Thinks s/he gets paid by the post
No need to deposit it to a Fidelity account in that manner. I deposit mine directly to my Fidelity Income Management account, which acts just like a MM account, with no minimum. CC cash rebates have nothing to do with cap gains. They are neither earnings nor income.Only 'catch' to get the 2% is you need to set it up to deposit to a Fidelity account, and that 'ties up' $2,000. I use a cash account so I don't create any cap gains issues with a bunch of small deposits, so by some calculations, I guess you could say I'm missing out on an average long term 7% gain each year (based on 3% inflation, 4% SWR SWAG), ~ $140/year. Since it is 'cash' but not really liquid, it's a 'waste' of cash.
I don't know if they still offer the IMA, since they came out with the mySmartCash account. I've had the IMA for many years before mySmartCash was created, but I'm sure you can deposit your CC earnings to the new account with no problem.
BTW, FIDO (through FIA) offers two cards - the AMEX which is a 2% cash back on all purchases and the VISA, which gives you 1% back on the first $15k charged annually, and 2% for all purchases thereafter.
The two cards work for me, with AMEX as my primary with the VISA as the backup.
BTW, you should never give up/cancel a CC. Just put it in a drawer and just don't use it - or better yet use it once a year for a minor charge, which will keep it active. If you cancel it, it will affect your FICO score since FICO uses the ratio of total outstanding credit used vs. the combined limit of all your cards (regardless if you pay them off monthly - as I/DW do).
Additionally, it will affect the term that you have had the card active (longer is better).
Here's some info on what to consider if you are thinking about closing a CC account/card:
The Dos and Donts of Closing Old Accounts