You Could Earn an Unlimited 2.6% Back With the Bank of America® Premium Rewards® credit card

With most credit cards, 2% is the unofficial limit for flat-rate rewards. Some cards earn higher rates in bonus categories, such as groceries. But for regular (non-bonus) spending, 2% has long been the highest rate you can find.

However, there's a way to earn even more with the Bank of America® Premium Rewards® credit card. With this card, you can earn an unlimited 2.6% (technically 2.625%) back on regular spending, and 3.5% on travel and dining. Those rates may seem unbelievable, but it's possible through the Bank of America Preferred Rewards program.

>> Apply now for the Bank of America® Premium Rewards® credit card. <<

How to earn an unlimited 2.6% with the Bank of America Premium Rewards

The standard rates for the Bank of America® Premium Rewards® credit card are:

• 2 points per $1 on travel and dining
• 1.5 points per $1 on other purchases

Points are redeemable for cash back, and they have a value of $0.01 per point. So, 1.5 points per $1 is equal to earning 1.5% cash back. Not quite 2.6%, but it's possible to get there.

Bank of America offers special perks for loyal customers through its Preferred Rewards program. One of the program's benefits is a 25% to 75% rewards bonus with all Bank of America credit cards. The bonus amount depends on which tier of the program you're in.

The 75% bonus is available to customers in the Diamond Honors tier and higher. To be in that tier, you need at least $100,000 in qualifying balances with Bank of America. It's a hefty requirement. But if you can reach it, here's how much you'll earn with the Bank of America® Premium Rewards® credit card:

• 3.5 points (3.5%) per $1 on travel and dining
• 2.625 points (2.625%) per $1 on other purchases

There are lower tiers in the program. The Gold tier requires at least $20,000 in qualifying balances and includes a 25% rewards bonus. The Platinum tier requires at least $50,000 and includes a 50% rewards bonus. In each case, Bank of America looks at your three-month combined average daily balance to see if you qualify.

Is Bank of America Preferred Rewards worth it?

The rates you can earn through the Preferred Rewards program are excellent. But you may be wondering if it's worth parking $100,000 with Bank of America.

First, let's clarify the types of accounts that qualify. Balances from the following types of Bank of America accounts count toward the Preferred Rewards minimums:

• Checking accounts
• Savings accounts
• Money market accounts
• Certificates of deposit (CDs)
• Individual retirement accounts (IRAs)
• Investment accounts with Merrill
• 529 plans appearing on your Merrill statement

It wouldn't be a good idea to keep $100,000 in a bank account with Bank of America. To be blunt, Bank of America offers terrible interest rates. The standard APY on its savings account is 0.01%. There is an interest rate boost if you're in its Preferred Rewards program, to as high as 0.04% in the Platinum Honors tier. That's still not even close to the best savings accounts, which are currently offering over 4%.

>> Apply now for the Bank of America® Premium Rewards® credit card. <<

However, you could also meet the balance minimum with a Merrill Edge brokerage account. Merrill Edge is a quality stock broker. You could start investing with Merrill, or transfer over your existing investments if you're open to a change.

There are two questions to ask yourself to decide if this is right for you:

• Are you open to using Merrill Edge? If you don't want to invest with Merrill, there aren't any other great ways to keep $100,000 with Bank of America. As mentioned, the interest rates on its bank accounts are far too low for storing that much money.
• How important is maxing out cash back to you? If you want to earn as much cash back as possible, then this strategy could be the way to do it. If you're fine with other cash back cards, or if you prefer travel credit cards with points you can use to book your trips, then the Preferred Rewards program isn't worth it.

The Bank of America® Premium Rewards® credit card is already valuable without any extras. The Preferred Rewards program takes it to the next level. If you can meet the balance requirements, and you're interested in doing so, you can boost your credit card rewards quite a bit this way.

>> Apply now for the Bank of America® Premium Rewards® credit card. <<