How does bank of america cash rewards work

Categories can be changed up to once per month. Bank of America is fairly liberal when it comes to how it defines its retail categories.

You can, however, earn the higher rate on purchases from wholesale clubs, which many cards exempt from their premium rewards category. Those who qualify and sign up for Bank of America's Preferred Rewards program have the opportunity to increase their rate. Cardholders have fewer redemption options than with most other cards, especially if they aren't a Bank of America banking or investment customer.

Cash back rewards can be redeemed for a statement credit at any time for any amount. Rewards can also be deposited into a Bank of America checking or savings account or redeemed for a credit to an eligible Merrill Lynch or Merrill Edge account. Cardholders can also opt to redeem cash back in the form of contributions to a account with Merrill Lynch or Merrill Edge. Since that figure represents a relatively high amount for most households, you may want to shop strategically to maximize your cash back.

For example, you might switch to making the richest rewards on apparel during the holiday season, to buy clothing gifts and take advantage of sales. Here's how our math breaks down. To do that, you'd have to be a big, diverse spender who tactically switches categories to make the most of where you're spending. Those earnings probably aren't sustainable.

Bank of America ranked third and scored above average in the J. Power U. Credit Card Satisfaction Study. Bank of America provides standard security features, including automatically receipt of fraud monitoring and freedom from liability for fraudulent purchases.

This card also comes with chip technology, overdraft protection, online and mobile banking and account alerts. You can add this card to your digital wallet, sign up for account alerts to get reminders about balances and due dates, and get a free FICO score update each month.

That's a unique feature. Such account holders aside, this card isn't necessarily an optimal choice for everyone. That said, this card's offer is generous enough, although there's a fee for balance transfers, which some cards do not impose. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.

These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Bank of America joins Wells Fargo and Citigroup which have both rolled out new cash-back cards in the past few months. Unlimited 1. There are three Preferred Rewards tiers.

If you're in the highest tier, Platinum Honors, you earn 2. If you're in the lowest tier, Gold, you receive 1. It pays to have a relationship, or a full relationship, with us [Bank of America].

The more you do with us, the more you get rewarded," Don Vecchiarello, spokesperson for Bank of America, said. The ability to earn a greater cash-back rate by being a Preferred Rewards member, up to 2. Most other cash-back cards offer rewards rates of 1. While cardholders have the ability to earn more by being a Preferred Rewards Program member, there are other cash-back cards on the market with better rewards systems if you're not a member.

See rates and fees , terms apply. It remains worth arguing that for those interested in sporting multiple credit cards, this card could make an excellent additional card. Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates.

He remains most at home on a tractor, but has learned that opportunity is where he finds it and discomfort is more interesting than complacency. She has visited over 45 countries and lived in Thailand, China, and Ireland where her son was born. Her kids have over 20 stamps in their own passports. Her passion lies in showing families how to travel more while keeping their savings and sanity.

Her guidebook, Disney World Hacks, is a bestseller on Amazon. Select Region. United States. United Kingdom. Apply Now. Chauncey Crail, Dia Adams. Contributor, Editor. Editorial Note: Forbes may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. The Discover offers on this page are no longer available on Forbes. As a result, offers described on this page may be out of date. All ratings are determined solely by our editorial team.

Welcome Bonus. Annual Fee. Regular APR. Credit Score. That means you could earn up to 5. After the intro APR offer ends, Contactless Cards — The security of a chip card, with the convenience of a tap This online only offer may not be available if you leave this page or if you visit a Bank of America financial center.

You can take advantage of this offer when you apply now. More Highlights. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.

Introduction A card that might appeal to those solely interested in cash-back rewards, the Bank of America Customized Cash Rewards credit card offers no complex points system or luxurious travel rewards. Rewards Potential To determine the rewards potential of the Bank of America Customized Cash Rewards credit card we have to look at the bonus categories and calculate what an American household might spend in those areas.

Contactless Chip Technology: Fast and easy contactless use where made available by vendors.