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Bank of America content was last updated on July 25, 2022.
The Bank of America® Customized Cash Rewards Credit Card is unique in that you can choose the category in which you earn the highest reward rate. This card also provides new cardholders with a generous bonus offer and no annual fee.
Cardholders can also save money with a 0 percent starting APR on purchases for 15 billing cycles followed by variable APRs from 15.49 to 25.49 percent. This makes it ideal for getting rewarded for your spending as well as paying for large purchases without any interest for a limited time.
How to earn rewards
Once your Bank of America Customized Cash Rewards credit card is approved, you can qualify for three different reward tiers based on your spending:
- 3 percent cashback in your chosen category: Gasoline, Online Shopping, Restaurants, Travel, Pharmacy, Home & Furniture.
- 2% cashback at grocery stores and wholesale clubs
- 1% cashback on all other purchases
Just be aware that while you can earn unlimited 1 percent rewards on your spending, the 3 percent and 2 percent bonus categories are capped at $2,500 in total spending each quarter, after which you’ll get 1 percent back.
Bank of America says you can change the 3% refund category on your card once per calendar month through online banking or the Bank of America mobile app.
Also, remember that the rewards you earn with this card are backed by a generous bonus offer. This initial offer allows you to earn $200 in online cash rewards when you spend $1,000 on your card within 90 days of opening an account.
How to earn more with Bank of America Preferred Rewards
If you want to earn even more rewards, having a deposit account with Bank of America or a Merrill investment account can help. Having any of these accounts and maintaining a minimum average daily balance may help you qualify for the Bank of America Preferred Rewards program.
This program has three different tiers, each allowing you to earn progressively higher levels of rewards for your spending. The following chart shows the average daily balance you need to maintain in Bank of America deposit accounts and Merrill investment accounts, as well as the percentage of bonus rewards you can earn.
| Gold | Platinum | Platinum Awards | |
|---|---|---|---|
| Three months cumulative average daily balance required | from 20,000 to 49,999 USD | $50,000 to $99,999 | $100,000 or more |
| Credit card bonus | 25% | fifty% | 75% |
As you can see, in order to qualify for this program, you need to deposit quite a lot of money. On the other hand, joining and earning the highest level of bonus rewards may not be that difficult if you use a Merrill investment account for retirement.
In any case, by becoming eligible for the Bank of America Preferred Rewards program, you will be able to earn significantly more in the form of rewards. You can get up to 5.25% back on the 3% category of your choice, 3.5% back at grocery stores and wholesale clubs, and 1.75% back on all other purchases.
Maximum reward for what you spend
There are several ways to maximize your rewards with the Bank of America Customized Cash Rewards credit card, and it all starts with the initial bonus. When you receive your card in the mail, make sure you have spent at least $1,000 within 90 days of the approval date. This ensures that you can claim $200 in online rewards.
Below is a list of additional strategies for maximizing rewards.
Transfer your savings to Bank of America or open a Merrill investment account.
If you have a large reserve fund or have the flexibility to choose where to invest, consider transferring money to a Bank of America deposit account or a Merrill investment account. You can access the Bank of America Preferred Rewards program if you have at least $20,000 in your accounts, and joining this program can earn you additional rewards from 25 to 75 percent.
Change categories 3% depending on your spending
Also, keep in mind that you can change your card’s 3 percent category each month using the Bank of America website or mobile app. This can help you align your bonus rewards with major purchases you need to make, like a new living room sofa or vacation.
At a time when you don’t have big expenses planned, you can set the 3 percent tier to something you normally spend money on, like food or online shopping.
Use your card for everyday expenses and bills
Finally, you will get more rewards if you use your credit card for all your regular purchases and bills. This is true for recurring expenses, but even more true for the 3 percent tier of your card and every dollar you spend at grocery stores and wholesale clubs.
Best Ways to Redeem Your Rewards
Bank of America allows you to use rewards in several ways, including:
- Cash awards, offsetting statements, or deposits made directly to or credited to a Bank of America checking or savings account with Merrill
- Redeem to a qualifying 529 savings plan at Merrill or $25 check.
- Automatic redemption to a qualifying Bank of America or Merrill account starting at $25.
While you cannot directly use the rewards earned with this card for travel, merchandise, or gift cards, please be aware that Statement Credits allow you to do the same. Just write off whatever you want from your credit card and then refund to have all or part of the amount deducted from your account.
bottom line
Many cashback credit cards don’t let you choose your own bonus reward categories or make more money when you save and invest. The Bank of America Customized Cash Rewards credit card stands out for its flexibility and the incentive it gives cardholders to be smart with their money. If you need more than just a set-and-forget fixed-rate cashback card, this card might be for you.
Editorial disclaimer
The editorial content on this page is based solely on the objective judgment of our contributors and is not based on advertising. It was not provided or ordered by credit card issuers. However, we may receive compensation when you click on links to our partners’ products.
