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The Bank of America content in this post was last updated on 08.07.2019.
Bank of America just announced plans to update the reward structure on its Bank of America® Cash Rewards credit card, giving cardholders the opportunity to earn 3% cash back in one of six popular categories.
Starting the week of January 14, 2019, Bank of America® Cash Rewards cardholders will be able to assign their 3% cash back reward to one of six categories: gas, online shopping, dining, travel, drug stores, or home improvement and furnishings, for up to $2,500 in combined spending per quarter. Cardholders can reassign the 3 percent cash back reward once per calendar month; they can also elect to keep their reward in the same category.
Cardholders will earn 3 percent cash back on their chosen category plus 2 percent cash back on grocery stores and wholesale clubs, for up to $2,500 in combined spending per quarter. All other purchases receive cash back rewards at the rate of 1 percent per dollar. Bank of America Preferred Rewards members can also get a 25-75% rewards bonus on every purchase, when redeeming rewards into their Bank of America account.
In addition to increasing the number of categories that qualify for 3 percent cash back, Bank of America has increased the methods through which cardholders can redeem rewards. Cardholders who want to make a one-time redemption into an eligible Bank of America account no longer have a minimum redemption requirement, and cardholders now have the ability to redeem rewards into eligible 529 accounts.
These new reward opportunities make the Bank of America® Cash Rewards more competitive with rotating category credit cards such as the Discover it® Cash Back and the Chase Freedom®, both of which offer 5% cash back after activation on quarterly rotating categories but limit those high-level rewards to $1,500 in purchases per quarter (then 1%). Consumers who want the freedom to change rewards categories without being tied to a rotating rewards calendar may find the Bank of America® Cash Rewards card to be exactly what they’re looking for.