Bank of America® Cash Rewards Review: One of the Best Cash Bonuses On the Market

The big question is whether the bonuses and other benefits make the Bank of America® Cash Rewards credit card the best choice in a crowded marketplace. To help you make the call, I’ve put together an in-depth look at all the card details.

I’m both a personal finance writer specializing in credit cards and a credit card enthusiast, which means I spend a lot of my time browsing card pages. This doesn’t just mean the main card page that everyone looks at, either; I check the terms and conditions, the fees, and all that fine print.

On The Ascent, I’ve written reviews and comparisons for dozens of credit cards. By analyzing so many different cards, I have a good idea of how their features compare and which cards live up to the hype.

Up to 3% cash back -- You’ll earn the following cash-back rates with the card:

• 3% at gas stations

• 2% at grocery stores and wholesale clubs

• 1% on all other spending

The 2% and 3% cash-back rates are for your first $2,500 in spending combined at grocery stores, wholesale clubs, and gas stations each quarter

$200 intro bonus -- To get this bonus, you must spend $500 within the first 90 days. Considering how much you’ll make for a very small minimum spending requirement, this card has one of the best sign-up bonuses among best-in-class cash-back cards.

No annual fee -- Like quite a few other cash-back cards, this card doesn’t charge an annual fee.

0% intro APR -- The 0% intro APR lasts for 12 billing cycles and applies to purchases and balance transfers, although balance transfers must be made within 60 days of your account opening to qualify. That’s not a big deal, because if you’re planning to transfer credit card debt, you’d want to do that as soon as possible, anyway.

Bonus cash back for Bank of America customers -- What makes Bank of America different from other card issuers is the special bonuses it offers for clients who also have banking or investment accounts.

Here’s how it works -- if you have a Bank of America® checking or savings account and you deposit your cash back into that account, you’ll receive a 10% bonus. If you meet combined balance minimums in any bank accounts with Bank of America and investment accounts with either Merrill Lynch or Merrill Edge, you’ll qualify for even larger bonuses through the Preferred Rewards program. The tiers to that program are:

• Gold -- $20,000 combined balance minimum, 25% bonus

• Platinum -- $50,000 combined balance minimum, 50% bonus

• Platinum honors -- $100,000 combined balance minimum, 75% bonus

You can see how each bonus would affect your cash-back rates in the table below.

Caps on bonus categories -- If you spend a lot at gas stations, grocery stores, and wholesale clubs, you could hit the $2,500 quarterly spending cap. At that point, you’ll only earn an unspectacular 1% back.

3% foreign transaction fee -- While foreign transaction fees are commonplace among cash-back cards, that doesn’t mean we have to like them.

The most important numbers to look at with a cash-back card are the cash-back rates and the annual fee. By comparing the cash-back rates to your typical spending and subtracting the annual fee, you can estimate how much the card will earn you per year.

Good to excellent credit (generally 670-plus FICO® Score) is suggested for the Bank of America® Cash Rewards credit card. Note, people with higher scores can be declined and people with lower score may be approved. Credit scores are just one factor used to make a credit decision.

Case in point, Bank of America credit cards are unique in that on some denied applications, it has given “lack of deposits or investments” as a denial reason, and applicants have reported being offered the opportunity to get a credit card if they open a certificate of deposit with the bank first. Based on that evidence, it appears having a banking or investment account with Bank of America could help you get a card with them.