A Fisher-Price Credit Card? The Toy Company Wants to Help You Save For Your Child's College Tuition

Fisher-Price has recently partnered with Concerto Card Company to release a no-fee rewards card that earns 2% back when points are redeemed as a 529 plan deposit. Though it's not the first credit card designed for college savings plans -- the Upromise Mastercard® beat Fisher-Price to it -- its 2% earn rate is competitive with other cash back credit cards and its purpose might compel you to set more aside for your kids' college funds.

It might have good intentions. But is the Fisher-Price College Savings Mastercard® really worth it for the bait it's casting?

The Fisher-Price College Savings Mastercard®: a quick breakdown

The Fisher-Price College Savings Mastercard® earns 1% back on every purchase, which becomes 2% when you deposit your "College Savings Rewards Points" into an eligible 529 savings plan. Your points are calculated at the end of each billing cycle, and you can redeem them at a minimum of $25 for each linked 529 plan.

Currently, this card earns a $50 bonus ($25 if redeemed as a statement credit) when you spend at least $250 within your account's first three months. Not too shabby, but definitely not the best welcome bonus I've seen on a rewards card.

If you don't redeem your College Savings Rewards Points as a 529 deposit, you can apply them as a statement credit to your balance. Just be aware that your points won't be doubled, meaning your card's effective earn rate will be 1%.

Is it worth it?

If you deposit your College Savings Rewards Points into a 529 plan, then the 2% earn rate is fairly competitive with the base rates on other cash back and rewards credit cards. And if you like the idea of restricting your credit card rewards to a financial goal (like saving for your kids' college), then the card might make you feel better about where your earnings are going.

That said, the card isn't the best rewards card I've seen. And if you're really serious about saving for your kids' college, there are more powerful credit cards that can help you accomplish that goal.

Let's start with the earn rate. A base rate of 2% isn't bad. But for certain purchase categories -- like groceries, dining out, and gas -- you could be earning between 3% and 5%. For instance, the Discover it® Cash Back card earns 5% back on rotating rewards categories that cardholders must enroll in, up to a quarterly cap of $1,500 spent (or $75 in cash back). And after your first year, Discover will match the cashback you earned, which is how I earned $1,656 on mine last year.

Now let's talk about that welcome bonus -- $25 (which becomes $50 if you deposit it in an eligible 529 plan) after you spend at least $250 within your account's first three months. Compare that with the Wells Fargo Active Cash® Card, which earns 2% on every purchase, regardless of how you redeem rewards. With this card you'll earn $200 when you spend at least $500 in the card's first three months. If you deposit this cash into your Wells Fargo checking account, you can transfer it into a 529 plan, effectively giving you $150 more than the Fisher-Price credit card.

So is the Fisher-Price College Savings Mastercard® worth it? For some avid college savers, it might be. But even so, I would compare the card with other cash back credit cards. You could earn more on other rates and heftier welcome bonuses, and as long as your card's provider lets you deposit rewards into a checking account, you can transfer potentially bigger earnings into a 529 plan.