Bank of America Preferred Rewards Program: Benefits and Qualifications

Maintaining a sizable bank balance has its benefits, but Bank of America rewards loyal customers beyond measure with its Preferred Rewards program.

Through this program, account holders with large amounts of Bank of America or Merrill investment accounts can unlock all kinds of savings, including better interest rates, auto loan rebates, and even higher credit card interest rates.

If you have a Bank of America credit card or issuing bank, understanding the Preferred Rewards program can help you take advantage of all the benefits it has to offer.

What are Preferred Rewards?

Preferred Rewards is a program available to Bank of America and Merrill customers with large checking, savings, and investment account balances. It is designed to reward loyal users with commission discounts, higher reward rates, and more.

Depending on how much money you hold in your portfolio in Bank of America checking and savings accounts, or any Merrill investment accounts, you can qualify for different levels of Preferred Rewards membership and unlock even greater benefits.

This program is especially valuable for Bank of America customers who also have a Bank of America Rewards credit card as they can increase their earning potential. Read on to learn more about Preferred Rewards benefits and eligibility requirements.

Registration Requirements

To qualify for Preferred Rewards, you must have at least $20,000 in Bank of America and Merrill accounts. You must maintain an average daily value of this balance, combined across all of your Bank of America or Merrill accounts, for a minimum of three months to qualify.

Once you have reached the required balance, you can simply sign up and you will not be charged any fees. And depending on your average balance, you will automatically receive the appropriate status in the program.

You retain your status for 12 months, even if your average balance for that period falls below the requirements. If you meet the requirements for a higher level within 12 months, you will be automatically promoted. If your average balance drops to a lower tier, you will have a three-month grace period after 12 months before you automatically downgrade or no longer qualify for priority rewards.

Credit card benefits

Membership in the Preferred Rewards program provides Bank of America customers with many perks (which we will discuss later), but perhaps the most valuable of them are offered to Bank of America Rewards cardholders.

If you qualify for the Preferred Rewards tier and have a Bank of America credit card, you may be eligible for an increase in the rewards you earn – up to 75% more points or cashback.

Here’s how a Preferred Rewards membership can increase your rewards income with a qualifying credit card.

Bank of America Cash Rewards Personal Credit Card

With valuable, customizable reward categories, Bank of America® Customized Cash Rewards Credit Card offers simplicity and flexibility. Choose a 3% cashback category from six options: Gasoline, Online Shopping, Restaurants, Travel, Pharmacies or Home & Furniture. You will also receive 2% cashback on grocery shopping and club bulk purchases. However, keep in mind that the total spending limit for 2% and 3% in each quarter is $2,500 (that’s 1% cashback then).

Here are your cashback rates as a Preferred Rewards member.

Bank of America Unlimited Cash Rewards credit card

Bank of America® Unlimited Cash Rewards Credit Card is a fairly simple card that allows you to get a fixed 1.5% cash back on all your purchases. You can also get a $200 cash bonus by spending $1,000 within the first 90 days – and you won’t pay an annual fee.

It’s true that 1.5% cashback cards used to be the industry standard among flat rate cashback cards, but a card that offers up to 2% cashback on all your purchases is now more common. And Preferred Rewards members can beat that if you have a qualifying Bank of America account balance.

Bank of America Travel Rewards credit card

Travel credit cards can be tricky, but Bank of America® Travel Rewards Credit Card surprisingly easy. Cardholders receive unlimited 1.5x points and can use those points towards any travel purchase within the last 12 months, allowing you to use your rewards on third party travel sites. Because you earn points on every purchase, this is a great everyday card for the aspiring traveler.

Here’s what your earnings as a Preferred Rewards member might look like:

Bank of America Premium Rewards Credit Card

More frequent travelers may prefer Bank of America® Premium Rewards® Credit Card with a Bank of America Travel Rewards card. Although it has an annual fee of $95, you will earn 2x points for trips and restaurant purchases, and 1.5x points for regular purchases.

Here’s what that rate might look like for Preferred Rewards members.

Other benefits

In addition to a higher reward rate, Preferred Rewards customers can enjoy many other benefits as they progress through the tiers.

While these perks don’t have as much immediate value as a credit card interest rate hike, benefits such as a higher interest rate on your savings account can save you significant money in the long run.

bottom line

If you have a Bank of America credit card, Preferred Rewards offers a unique opportunity to maximize your reward potential. As you accumulate balance in your Bank of America or Merrill accounts, you will move up in levels, allowing you to earn even more with your bonus cards. In addition, you will receive discounts on other bank products such as mortgages and car loans.

Emily Sherman is a senior editor at CreditCards.com, specializing in news and product recommendations. She is also a founding member of To Her Credit, a two-week series of women’s financial advice for women. When she’s not writing about credit cards, she’s spending her points and miles planning her next big vacation.