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. For Preferred Rewards clients, this card is a no-brainer.
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||Earn an additional 25% rewards bonus||$5,000 spend on dining and travel = $125 in rewards|
|3-month average combined daily balance of $50,000 to $100,000||Earn an additional 50% rewards bonus||$5,000 spend on dining and travel = $150 in rewards|
|3-month average combined daily balance of $100,000+||Earn an additional 75% rewards bonus||$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.
- 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.
- This card comes with a variable APR of 17.74% to 24.74%
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
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.