Visa CEO Ryan McInerney has announced that Visa will be working with US financial institution partners to allow cardholders the ability to deposit credit card rewards into Trump accounts. President Trump welcomed the news.
How useful the program is will really depend on the redemption rate. I suspect we will see other card payment networks (Mastercard, American Express) follow suit. It also wouldn’t surprise me if this appeasement is enough to spell the end of any talk regarding capping interest rates at 10% and is the whole reason this program is being rolled out in the first place.
What Is A Trump Account?
I forget that not everybody is terminally online as much as I am and forgot to mention what a Trump account is. It’s a 530A account that was authorized into law by by the One Big Beautiful Bill Act (OBBBA) of 2025. Funds cannot be withdrawn before January 1 in the calendar year a child turns 18 years old. It has more restrictions and less tax advantages than other accounts such as 529. The main advantage is that deposits will be made for some people:
- Federal government to deposit $1,000 for U.S. Citizen children born in 2025-2028
- Michael and Susan Dell to deposit $250 for children born in 2014-2024 who live in ZIP codes where median family income is $150,000 or less
Main advice seems to be to take the free money but then put additional funds into an account that is better tax advantaged.
