Bank of America Premium Rewards Credit Card
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Bank of America’s newest credit card gives top-notch rewards to cardholders who show some loyalty to the bank. In a nutshell, the more money you have deposited with Bank of America, the greater your earnings potential with the Bank of America Premium Rewards Credit Card.
On the surface, the goodies offered by the Bank of America Premium Rewards Credit Card are similar to other mid-level cards. Premium Rewards offers enhanced travel benefits and cash-back benefits. But customers enrolled in the bank’s Preferred Rewards program will receive enhanced credit card reward benefits in one of three tier levels based on the combined sum held in their Bank of America accounts.
How the rewards tiers work
|Deposit balance||Rewards rate||Rewards value|
|No deposit account||2% dining and travel, 1.5% all else||$5,000 spend on dining and travel = $100 in rewards|
|3-month average combined daily balance of $20,000 to $50,000||2.5%; about 1.9%||$5,000 spend on dining and travel = $125 in rewards|
|3-month average combined daily balance of $50,000 to $100,000||3%; 2.25%||$5,000 spend on dining and travel = $150 in rewards|
|3-month average combined daily balance of $100,000+||3.5%; 2.65%||$5,000 spend on dining and travel = $175 in rewards|
Those at the highest tier though will get a best-in-class rewards rate on all their spending.
If you only qualify for the lowest rewards rate of 2% on dining and travel and 1.5% on all other spending, you’re probably going to do better with a card offering different cash-back rewards opportunities.
There’s a nice sign-up bonus of 50,000 bonus points, worth $500, if you spend $3,000 on the card within the first 90 days of opening the account. The card also offers an annual $100 airline incidental credit and a $100 application fee reimbursement every four years for a Global Entry fee application or TSA Precheck.
Who should get this card
If you’re already doing your banking with Bank of America or you have a qualifying Merrill Lynch or Edge account, the rewards benefits potential of this card could be amazing — especially if you qualify for the highest tier.
Fees and APR
- Annual fee is $95.
- You’ll pay a variable APR of 16.99% to 23.99% on purchases and balance transfers based on creditworthiness.
- Penalty APR is a variable 29.99% that may apply indefinitely if you pay late or miss a payment, plus a late fee of up to $38.
- Balance transfer fee is $10 or 3% of the amount transferred, whichever is greater.
- Pay no foreign transaction fee for purchases made outside the U.S.
Extras, perks and using points
Cardholders get Visa Signature perks including travel and auto insurance and protections, as well as benefits and discounts at hotels that are part of the Signature Luxury Hotel Collection.
You can redeem your points, starting at 2,500 points, through the Bank of America website or over the phone. Points can be redeemed for booking travel, buying gift cards, as a statement credit or deposited into your qualifying Bank of America or Merrill Lynch account.
How this card compares
The Chase Freedom Unlimited is a solid, straightforward cash-back rewards card that’s ideal for cardholders who just don’t have the time or energy to track spending categories. It ranks among the very best cash-back credit cards we track.
There are other cards that offer better rewards, but the Freedom Unlimited’s 1.5% cash back on everything is an excellent reward coming from a no-annual-fee credit card.
Depending on your spending habits, the no-annual-fee Blue Cash Everyday Card from American Express may ultimately give you better cash-back earnings with a rate of 3% at U.S. supermarkets (up to $6,000 in annual spending, then 1%), 2% at U.S. gas stations and select U.S. department stores and 1% on all other eligible spending.
The Chase Sapphire Preferred Card’s hefty sign-up bonus, boosted redemption value when using the Chase portal, and a generous rewards program make this card a stand-out among travel rewards cards offering big value for minimal cost. Since Chase Ultimate Rewards points can be used for everything from flights to lodging to cruises, this also makes it one of the most flexible redemption programs among travel cards.
The Alliant Cashback Visa Signature Credit Card pays 3% back during the first year of card ownership, then 2.5% thereafter. You have to be a credit union member to be eligible for the card.
Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines, or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.