Bank of America Cash Rewards credit card
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In summer 2018, Bank of America modestly boosted the sign-up bonus value on its Bank of America Cash Rewards credit card (formerly known as BankAmericard Cash Rewards), but that was enough reason to move this card from a “no thanks,” to a “maybe.” This card has solid rewards rates in both groceries and gas, which makes it worth consideration. Plus, if you are a Preferred Rewards client with Bank of America, you can really boost the value of this card.
You’ll earn $200 in online cash rewards after you make just $500 in purchases during the first 90 days of account opening. That spending requirement is fairly low – even for a rewards card that carries no annual fee.
This card’s most direct competition is the Blue Cash Everyday Card from American Express, another card that doesn’t charge an annual fee. Both cards offer extra rewards on gas station and supermarket spending.
Bank of America Cash Rewards offers 3% cash back on gas purchases and 2% at grocery stores and wholesale clubs up to $2,500 in combined spending per quarter. You’ll earn 1% on all other purchases. The AmEx card pays 3% cash back at U.S. supermarkets up to $6,000 per year (then 1%), 2% at U.S. gas stations and select U.S. department stores and 1% on all other purchases.
If you purchase much of your household’s groceries, there’s a better card for you.
We do like that this card comes with a potential for extra rewards for Bank of America deposit account customers, but the 10% bonus probably isn’t enough to offset other cards that offer a 2% flat rewards rate.
Who should get this card
This card is good for someone who wants an easy-to-follow cash-back card that rewards them for typical household spending. There are no rotating categories to keep track of and if you have a bank account or brokerage account with Bank of America or Merrill Lynch, the rewards value starts to exponentially increase.
This card also may be good for anyone looking to make a big purchase who wants the flexibility to pay it off over time. Cash Rewards comes with an introductory 0% APR for the first 12 billing cycles on purchases and on balance transfers made in the first 60 days. After that, a variable APR of 14.99%-24.99% will apply.
Fees and APR
- There is no annual fee.
- You’ll pay a 3% foreign transaction fee on all purchases made outside the United States.
Extras, perks and using rewards
Cash-back rewards can be redeemed at any time in any amount as either a statement credit, deposited to your Bank of America bank account, or used to buy gift cards through Bank of America’s online shopping portal.
Bank of America clients receive a 10% bonus for depositing the cash-back rewards into their bank account. Preferred Rewards clients can get an even bigger bonus — ranging from 25% to 75% depending on your Preferred Rewards status.
You have to maintain a combined balance of at least $20,000 with either Bank of America, Merrill Lynch or Merrill Edge to get these increased rewards, but if you do, the cash-back rewards go from good to outstanding.
For example, if you have the highest status of Platinum Honors with Bank of America, which comes with a hefty $100,000 minimum account balance requirement, you can earn a bonus on your cash-back rewards of up 75%.
If you have just the Bank of America Cash Rewards card and spend $1,000 in three months on gas, you earn $30 back. If you have a Bank of America bank account, with the 10% customer bonus, that gives you another $3 back for a total of $33 back.
But if you have the highest Platinum Honors Preferred status, that additional 75% back means you get a total of $52.50 on the $1,000 spent at the pump.
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 Chase Freedom Unlimited’s 1.5% cash-back on everything is an excellent reward coming from a no-annual-fee credit card.
If you also hold a premium travel rewards card from Chase like the Sapphire Preferred or Sapphire Reserve, you can transfer your rewards from the Freedom Unlimited to one of the premium cards to redeem for travel at an increased value.
The Capital One Quicksilver Cash Rewards Credit Card is simple. And that’s a good thing.
The card’s rewards program is structured so you don’t have to think about whether this is the month that gas station spending pays more or that it’s time to take advantage of warehouse club spending. There’s also no annual fee, so you don’t have to do the math about how much you’ll have to spend to make the card worth it.
When it comes to rewards value, the Citi Double Cash Card ranks among the very best cash-back credit cards that charge no annual fee.
Longer-term, the Citi Double Cash Card may earn you more rewards. Earn an unlimited 1% cash back when you make a purchase and another 1% back when you pay for those purchases.