One of your best options when you’re eligible for Preferred Rewards.
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Bottom line
The Bank of America Unlimited Cash Rewards card is free to keep in your wallet, so there’s not much risk in applying. However, unless you’re a Bank of America Preferred Rewards member with a large balance across your checking, savings and eligible investment accounts, the card’s value will likely be eclipsed by other flat-rate cash back options. But, if you keep an average of at least $50,000 in your Bank of America or eligible Merrill accounts, the Unlimited Cash Rewards card should be at the top of your list.
on Bank of America's secure site
Rewards rate
1.5%Annual fee
$0Intro offer
$200Regular APR
16.99% - 26.99% Variable APR on purchases and balance transfersRecommended Credit Score
Good to Excellent (670 - 850)If you’re a Bank of America customer with significant checking, savings or investment account balances, the Bank of America Unlimited Cash Rewards card will prove quite valuable thanks to the Preferred Rewards program, which can boost your flat rate as high as 2.62 percent. This increased rate would make the Unlimited Cash Rewards card not just one of the best flat-rate cash back cards, but possibly the highest-earning flat-rate card on the market today.
Continue reading to learn more about the Unlimited Cash Rewards card’s best features, where it stands among competing cards and whether it’s a good fit for your wallet.
By spending $1,000 on purchases within your first 90 days with the card, you’ll earn a $200 online cash rewards welcome bonus.
That’s a decent, standard sign-up bonus for a no annual fee cash back card, but you can get a slightly better value with a lower spending requirement. Some cards like the Capital One Quicksilver Cash Rewards Credit Card offer the same $200 bonus for only spending $500 within the first three months. Still, $1,000 is an easy threshold to meet in three months, so the spending requirement isn’t a big deal in this case.
The Bank of America Unlimited Cash is a flat-rate cash back card, which is the perfect cash back style to choose if you prefer a no-hassle rewards program or your spending falls outside of typical bonus categories and their spending limits.
Earning rewards with the Unlimited Cash card couldn’t be easier. You’ll collect 1.5 percent cash back on all purchases, no matter how much you spend or where you shop.
The only expenses that generally won’t earn rewards are account costs like balance transfers, cash advances, fees, interest charges and fraudulent charges (naturally). Gambling-related purchases — like lottery tickets — generally don’t earn rewards either. Check with Bank of America for the specific reward restrictions related to your card.
Bank of America provides a solid list of redemption options for your cash rewards:
Although you won’t be able to redeem for other cash back options like gift cards, merchandise or travel — as you can with issuers like Chase — don’t worry because these aren’t typically the most practical options for cash back anyway.
In order to redeem for a qualifying Merrill 529 account credit, you’ll need to have at least $25 in cash rewards. Automatic redemptions are also available starting at $25, but only for eligible Bank of America account direct deposits and contributions to non-529 Merrill accounts.
As with most cash back cards, each percentage point of your cash back rate will earn you 1 cent per dollar of your purchase. That means you’ll earn 1.5 cents per dollar spent with the Unlimited Cash card.
Bank of America Preferred Rewards members will get extra value per dollar spent, either 1.87 cents, 2.25 cents or 2.62 cents depending on your checking, savings and investment account balances, instead of the base 1.5 cents.
Bank of America cards typically don’t carry a heavy roster of benefits outside of Visa card features, but the Preferred Rewards and BankAmeriDeals programs can sprinkle a bit more cash back onto your spending.
Perhaps the most valuable benefit with Bank of America credit cards is the boosted rewards rate you’ll earn if you’re eligible to become a Preferred Rewards member. By keeping a certain minimum three-month average balance across your Bank of America accounts, you may automatically qualify for one of three status levels that award you a bevy of banking benefits, including a 25 percent to 75 percent rewards rate bonus:
The Unlimited Cash is branded as a Visa Signature card and comes with a few staple perks. Bank of America states you’ll receive extended warranty coverage, 24/7 pay-per-use Roadside Dispatch, travel and emergency assistance services along with ID Navigator credit monitoring via NortonLifeLock. The total list of Visa Signature benefits includes special privileges and discounts with select merchants, so be sure to contact Bank of America to confirm your card’s benefits.
These two benefits come with all Bank of America credit cards and are exclusive to Bank of America. BankAmeriDeals is the issuer’s limited-time offer program, similar to Amex Offers or Chase Offers, which lets you activate promotional offers in your account to get an extra 5 to 15 percent cash back at participating merchants (like select restaurants). You’ll also be able to earn “coins” that unlock higher reward offers for regularly using the program.
Museums On Us is a bit more niche, but it’s also available for Bank of America debit cards and perfect for museum lovers. Simply presenting your Bank of America card and a valid photo ID during the first weekend of every month has provided cardholders free admission to over 225 “cultural institutions” for more than 20 years.
The Unlimited Cash card doesn’t charge an annual fee, so you don’t have to worry about earning enough rewards to maintain your account each year. And if you’re considering transferring debt to a Bank of America credit card, the card is a worthwhile option, since its 0 percent intro APR for balance transfers (made within the first 60 days) and purchase is longer than the 12 month intro APR offers you’ll find on many competing cards. The 16.99 percent to 26.99 percent variable APR afterward is also lower than some competitors’ — the low-end is even below the current average interest rate.
Just be aware of the 3 percent (or $10, whichever is greater) balance transfer fee. There’s also a 3 percent foreign transaction fee in case you decide to use your card while you travel, which would more than eat through any cash back you’d earn.
The Bank of America Unlimited Cash Rewards credit card is a strong choice among flat-rate cash back card with no annual fee, especially due to its potential for boosted rewards through the Preferred Rewards program. However, individuals that are loyal to another bank or do not qualify for the higher tiers of this program may find more value from other cards in this category.
on Bank of America's secure site
Annual fee
$0Intro offer
$200Rewards rate
1.5%Recommended credit
Good to Excellent(670 - 850)on Chase's secure site
Annual fee
$0Intro offer
Earn an Additional 1.5% Cash BackRewards rate
1.5%–5%Recommended credit
Good to Excellent(670 - 850)on Bank of America's secure site
Annual fee
$0Intro offer
$200Rewards rate
1%–3%Recommended credit
Good to Excellent(670 - 850)Other credit cards that carry higher cash back rates with bonus categories, like the Chase Freedom Unlimited, may also be more valuable reward-wise, depending on how much you spend and if your spending is more tailored to specific categories. The Bank of America Unlimited Cash Rewards is ideal for people who cast a wide net on spending and can benefit most from earning on all purchases. The Chase Freedom Unlimited is one of the most lucrative rewards cards available, especially if you spend highly on travel and are a fan of Chase’s Ultimate Rewards portal. Both cards are fairly cost-effective, since neither has an annual fee and the barrier of entry is the same for both cards, as you’ll need at least good to excellent credit for feasible approval (a score between 670 and 850 on the FICO scale).
When it comes to getting a break on interest, the Bank of America Unlimited Cash Rewards wins out marginally, as the intro APR offers on both balance transfers and purchases are three months longer than Chase Freedom Unlimited’s. The ongoing APR is also slightly lower for the Bank of America Unlimited Cash Rewards, though it would still be fairly costly to carry a balance on either card once the APR offers end. It’s also interesting to note that even though you’ll be rewarded higher for travel purchases through the Chase Ultimate Rewards portal with the Chase Freedom Unlimited, the card still charges a foreign transaction fee, making it a less ideal payment option once you reach your overseas destination.
Overall the key differentiator between the two will come down to your spending habits: if you spend broadly across categories and you’re able to qualify for Preferred Rewards, the Bank of America Unlimited Rewards card wins out. If you want to earn a higher rewards rate in key spending categories like travel and dining, you may opt for the Chase Freedom Unlimited.
Similarly, the Unlimited Cash Rewards card’s sibling, the Bank of America® Customized Cash Rewards credit card, may earn more cash back based on your spending habits and gives you more flexibility than the competition. It lets you choose from one of six 3 percent cash back categories that can be swapped each month, plus 2 percent back at grocery stores and wholesale clubs. The only drawback is that the 3 percent and 2 percent categories share a $2,500 quarterly spending limit, after which you’ll earn 1 percent back. Even so, maxing out these categories (with the remaining spend earning 1 percent) would net you $359 per year. You’d need to spend about $8,034 more per year to earn that much cash back with the Unlimited Cash card.
If you value a bit more flexibility and autonomy when it comes to where you earn the most on your spending, we’d recommend going with the Customized Cash Rewards card, as you’ll be able to pick your highest-earning spending category from the eligible options. You’d also benefit even more if you qualify for Preferred Rewards, as this perk extends to both the Customized Cash Rewards and the Unlimited Cash Rewards cards. Both cards have the same ongoing APR and the same intro APR offers, so you won’t see much difference between cards when it comes to carrying a balance. Again, if you want to earn a bit more across all of your purchases, with no spending caps to worry about, the Unlimited Cash Rewards may be the better choice for you.
In order to maximize your flat-rate cash back card, your best move would be to pair it with a credit card that earns higher cash back on your most popular bonus categories. If you bank with Bank of America or are a Preferred Rewards member, the Customized Cash Rewards card is a prime partner. Its choice category flexibility allows you to squeeze the most cash back from your biggest expenses, while the Unlimited Cash card can earn more cash back on purchases outside your categories or beyond the quarterly spending cap.
The Bank of America Unlimited Cash card lands a notch above what’s considered a standard flat-rate cash back card, but the only unique advantages Bank of America offers to set itself apart from the crowd are its Preferred Rewards, BankAmeriDeals and Museums On Us programs.
The Unlimited Cash might be the best unlimited flat-rate cash back card available if you have at least $50,000 sitting in the bank to earn 2.25 percent cash back with Platinum Preferred Rewards status (up to 2.62 percent with $100,000 and Platinum Honors status). However, many cardholders looking for a no annual fee card may not have that much money in their accounts, so a cash back card with a 2 percent flat rate or higher bonus category rates is probably a more worthwhile option.
Bankrate expert Garrett Yarbrough strives to make navigating credit cards and credit building smooth sailing for his readers. After regularly featuring his credit card, credit monitoring and identity theft analysis on NextAdvisor.com, he joined the CreditCards.com and Bankrate.com teams as a staff writer to develop product reviews and comprehensive credit card guides focused on cash back, credit scores and card offers.
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