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Bank of America Cash Rewards Review: A Cash-Back Contender

June 19, 2018
BankAmericard Cash Rewards credit card review
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    Loyalty pays when you carry the Bank of America® Cash Rewards credit card. This $0-annual-fee cash-back card can earn a dazzling rewards rate on gas, groceries and wholesale club spending — but only if you have a lot of money in Bank of America® affiliated accounts. If that’s not the case, the card will fetch only so-so rewards.

    Bank of America® Cash Rewards Credit Card

    Bank of America® Cash Rewards Credit Card

    Apply Now on Bank of America's secure site
    • Recommended Credit Score
    • 690
      850
      Good - Excellent
    • Card Details
    • Pros

      • No annual fee
      • Cash bonus offer
      • Cash rewards

      Cons

      • If you're a big spender with excellent credit and willing to pay an annual fee, there are cards with higher rewards

      Annual Fees

      $0

      APR

      • APR: 14.74% - 24.74% Variable APR
      • Penalty APR: up to 29.99% APR

      Bonus Offers

      $150 online cash rewards bonus after you spend at least $500 on purchases in the first 90 days of account opening.

      Intro APR

      • 0% on Purchases for 12 billing cycles and 0% on Balance Transfers for 12 billing cycles for balance transfers made in the first 60 days
    • Additional Information
      • No annual fee
      • $150 online cash rewards bonus after you spend at least $500 on purchases in the first 90 days of account opening
      • Earn 1% cash back on every purchase, 2% at grocery stores and wholesale clubs, and 3% on gas for the first $2,500 in combined grocery/wholesale club/gas purchases each quarter
      • No changing categories and no expiration on rewards
      • 0% Introductory APR for 12 billing cycles for purchases AND for any balance transfers made in the first 60 days, then, 14.74% - 24.74% Variable APR. 3% fee (min $10) applies to balance transfers
      • Get a 10% customer bonus every time you redeem your cash back into a Bank of America® checking or savings account
      • If you're a Preferred Rewards client, you can increase that bonus to 25% - 75%
      • Easily add your Mastercard® credit card to any digital wallet for a simple, secure, and convenient way to pay online, in-app, and in-store

    Bank of America® Cash Rewards credit card: At a glance

    Card type Cash back
    Annual fee $0
    Interest rate 0% on Purchases for 12 billing cycles and 0% on Balance Transfers for 12 billing cycles for balance transfers made in the first 60 days, and then the ongoing APR of 14.74% - 24.74% Variable APR
    Rewards • 3% cash back on gas
    • 2% cash back at grocery stores and wholesale clubs
    The 3% and 2% rates apply on up to $2,500 in combined gas/grocery/wholesale club spending per quarter.
    • 1% cash back on all other purchases
    Sign-up bonus $150 online cash rewards bonus after you spend at least $500 on purchases in the first 90 days of account opening.
    Foreign transaction fee 3%
    Balance transfer fee 3% of the amount of each transaction or $10, whichever is greater.
    Credit required Good (read about credit score ranges here)
    Our assessment Bank of America® Cash Rewards Credit Card Editor's Rating: 3.6 / 5

    Bank of America® Cash Rewards credit card: Benefits

    • High rewards for certain Bank of America® and Merrill Lynch customers. The rewards rates for gas, grocery stores and warehouse clubs are nice, but not too compelling. You get 3% on gas and 2% at grocery stores and wholesale clubs on up to $2,500 in combined gas/grocery/wholesale club spending per quarter. All other purchases earn 1%. Bank of America® checking or savings customers get a 10% bonus on redemption, pushing the effective reward rates to 3.3%, 2.2% and 1.1%. But things really get good if you have at least $20,000 in accounts at Bank of America®, Merrill Lynch or Merrill Edge. That allows you to join the Preferred Rewards program and earn bonuses of 25% to 75%:
      Combined balance required to qualify Effective gas rewards rateEffective grocery store/ wholesale club rewards rateEffective rewards rate on everything else
    Gold (25% boost)$20,000 to $49,9993.75%2.5%1.25%
    Platinum (50% boost)$50,000 to $99,9994.5%3%1.5%
    Platinum honors (75% boost)$100,000+5.25%3.5%1.75%
    • A decent sign-up bonus. The $150 bonus is in line with what other $0-annual-fee cash-back cards offer.
    • A 0% intro APR period. Need time to pay down a major purchase interest-free? This card has an APR of 0% on Purchases for 12 billing cycles and 0% on Balance Transfers for 12 billing cycles for balance transfers made in the first 60 days, and then the ongoing APR of 14.74% - 24.74% Variable APR. Just be sure to make on-time payments. A single late payment could cut the card’s introductory period short.

    » MORE: Bank of America® credit cards mobile app review

    Bank of America® Cash Rewards credit card: Drawbacks

    • Lower rewards for non-customers. As mentioned, if you’re a Bank of America® checking or savings customer and especially a member of Preferred Rewards, the Bank of America® Cash Rewards credit card is a definite winner. If you’re not a customer, though, the value proposition is a lot weaker.
    • Bonus rewards are complicated and capped. Quick: How much did you spend on groceries, gas and wholesale clubs combined in the last three-month block of the year? Limiting how much spending is eligible for bonus rewards is a downer, but it gets worse when you have to track your spending in multiple categories. A card with a simpler rewards structure might be less of a headache.
    • The 0% period isn’t as long as it could be. Several other no-fee cash-back cards offer longer 0% periods on purchases.

    Bank of America® Cash Rewards credit card: Alternatives

    For a simple, high uncapped rewards rate: Citi® Double Cash Card – 18 month BT offer

    The Citi® Double Cash Card – 18 month BT offer gives you 2% cash back on every purchase — 1% when you buy and 1% when you pay it off — with no caps on how much you can earn. Use it for everything, and you’re almost guaranteed to collect more in rewards than you would get with the Bank of America® Cash Rewards credit card (assuming you aren’t a Preferred Rewards member). The annual fee is $0.

    For a bigger new-cardmember bonus: Discover it® Cash Back

    Most credit-card sign-up bonuses work like the one on the Bank of America® Cash Rewards credit card: Spend a certain amount in your first few months with the card, then collect the bonus. The Discover it® Cash Back does things differently: Discover will match ALL the cash back earned at the end of your first year, automatically. That puts you in charge of your bonus. This card earns 5% cash back on rotating categories that you activate, on up to $1,500 a quarter in spending, and 1% on everything else. Bonus categories in recent years have been common merchants like supermarkets, gas stations and Amazon.com. The annual fee is $0. Additionally, this card has an intro APR of 0% on Purchases and Balance Transfers for 14 months, and then the ongoing APR of 13.49% - 24.49% Variable APR.