HUNT VALLEY, Md. (TNND) — Visa announced Wednesday it will try to allow its cardholders to deposit credit rewards into Trump Accounts.
The company said in a statement that directing the benefits into the retirement accounts, which are available for children born between 2025 and 2028, will help families save for their kids’ futures.
“Visa will be working with our U.S. financial institution partners to enable a new capability that will offer cardholders the option to direct credit card rewards into Trump Accounts,” the company said. “It’s a simple way for families to turn rewards earned on everyday purchases into savings for their children’s futures.”
The Trump Accounts, which were established through last year’s One Big Beautiful Bill Act, start with a $1,000 government investment. Parents can contribute to the market-invested funds as their child ages, and at 18 years old, the kid can take control of them.
President Donald Trump said Wednesday that the accounts will give children a head start at financial success, noting they could grow to significant amounts by the time the kid transitions to adulthood.
“Under this administration, we’re going to leave every child with real assets and a shot at financial freedom,” Trump said.
“We’ll ensure that Americans don’t just end their lives with a nest egg, but instead all Americans will begin their lives with a beautiful nest egg.”
Some economists have found fault with the impact the Trump Accounts could have on wealth inequality. The Tax Law Center, a New York University think tank, said in a report last year that the accounts “double down” on a failed approach to address financial challenges.
“Tax-preferred accounts primarily benefit families that already have spare time and money, not the families that need the most help, and come with other downsides including fees, lack of flexibility, and potential penalties,” the think tank said.
Have questions, concerns or tips? Send them to Ray at rjlewis@sbgtv.com.
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