Bank of America Credit Card and Banking Customers May Qualify for Extra Rewards

Personal Finance
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If you’re a Bank of America banking customer, you could be earning serious rewards bonuses on your BankAmericard Travel Rewards® or BankAmericard Cash Rewards™ credit card with Preferred Rewards. Here’s the lowdown on Preferred Rewards and how much more you’ll earn.

What are Preferred Rewards?

High-balance Bank of America® customers may qualify for additional credit card rewards if they enroll in one of the three tiers of Preferred Rewards — Gold, Platinum and Platinum Honors. Required balances for the three tiers are calculated by combining the three-month averages of your Bank of America® banking account balances and Merrill Edge or Merrill Lynch investment balances.

Gold Platinum Platinum Honors
Required balance $20K – $50K $50K – $100K $100K+
Rewards bonus 25% 50% 75%

 

Preferred Rewards offers more than extra credit card rewards. You can also get rewards boosts to your money market accounts, reduced mortgage origination fees and auto loan rate discounts. For more information, check out the Bank of America® website.

That’s nice — what do these extra rewards look like on my spending?

Here’s an example: Let’s assume you spend like the “average American” of 2013, according to the Bureau of Labor Statistics. To keep things simple, let’s also assume these are the only purchases you put on your credit card annually.

  • Grocery stores: $3,977
  • Dining out: $2,625
  • Apparel and services: $1,604
  • Entertainment: $2,482
  • Gas: $2,418

If you have the BankAmericard Travel Rewards® credit card, you’ll earn standard rewards of 1.5 points on every dollar spent. But with Preferred Rewards eligibility, your rewards will be 25%-75% higher on every purchase. Here’s how the rewards will look for the average American who spends $13,106 on his or her credit card annually.

Regular rate (1.5 points/$1) 19,659 points
Gold (1.875 points/$1) 24,574 points
Platinum (2.25 points/$1) 29,489 points
Platinum Honors (2.625 points/$1) 34,403 points

 

If you have the BankAmericard Cash Rewards™ credit card, you’ll earn 3% back on gas and 2% back at grocery stores, up to $1,500 in gas and grocery store spending quarterly. You’ll earn 1% back on all other purchases. Again, assuming you’re our average American, here are the rewards you’ll earn with Preferred Rewards.

Regular rate (3%, 2%, 1%) $230.83
Gold (3.75%, 2.5%, 1.25%) $288.54
Platinum (4.5%, 3%, 1.5%) $346.25
Platinum Honors (5.25%, 3.5%, 1.75%) $403.95

Nerd note: With the BankAmericard Cash Rewards™ credit card, you’ll only earn these bonus rewards if you redeem your cash back into your Bank of America® checking or savings account.

I’m a Bank of America® banking customer, but I don’t have high balances. What about me?

If you’re a Bank of America® banking customer, but you don’t qualify for Preferred Rewards, you’ll still earn a little extra bonus. With the BankAmericard Travel Rewards® credit card, you’ll earn a 10% customer bonus on every purchase made — for an effective rewards rate of 1.65 points per dollar spent.

With the BankAmericard Cash Rewards™ credit card, you’ll earn a customer bonus of 10% each time you redeem your cash back into your Bank of America® checking or savings account — for an effective rewards rate of 3.3% back on gas, 2.2% back at grocery stores and 1.1% back on everything else.

Bottom line: Bank of America® banking customers who qualify for Preferred Rewards can earn 25%-75% more rewards on their credit card spending. If you don’t have the high balances to qualify, as a Bank of America® banking customer you’ll receive a 10% customer bonus on rewards. Make sure if you have the BankAmericard Cash Rewards™ credit card you’re redeeming rewards into your Bank of America® checking or savings account to get your bonus.

Image via iStock.