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

The new intro bonus offer is best-in-class with a low spending hurdle to qualify. Learn more with our in-depth review.

Bank of America® Cash Rewards credit card

Bank of America® Cash Rewards credit card

Apply Now
Secure lock icon

Great for: Bonus and cash rewards program Bank of America® Cash Rewards credit card

Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon
4.5 stars Info icon We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Star Review Icon Star Review Icon Star Review Icon Star Review Icon Star Review Icon = Best
Star Review Icon Star Review Icon Star Review Icon Star Review Icon = Excellent
Star Review Icon Star Review Icon Star Review Icon = Good
Star Review Icon Star Review Icon = Fair
Star Review Icon = Poor
Apply Now
Secure lock icon

On Bank of America's Secure Website

Our Bottom Line

The new intro bonus offer leads the pack with a low spending hurdle. The cash back versatility makes it even more enticing.

Credit Rating Requirement: Good/Excellent
  • No annual fee
  • $150 online cash rewards bonus after you spend at least $500 on purchases in the first 90 days of account opening
  • NEW OFFER: Maximize your cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement /furnishings    
  • Now earn 3% cash back in your choice category and 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), and unlimited 1% on all other purchases 
  • You can update your choice category for future purchases once each calendar month using the Mobile banking app or Online banking, or do nothing and it stays the same. 
  • 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, 16.24% - 26.24% Variable APR. 3% fee (min $10) applies to balance transfers 
  • If you're a Preferred Rewards client, you can get a 25% - 75% rewards bonus on every purchase  
Show More Arrow graphic to expand and collapse content

Bonuses have become an increasingly important feature on cash-back cards as the competition between card issuers has grown. The Bank of America® Cash Rewards credit card is no slouch in that department, featuring high cash-back rates in several spending categories and a great sign-up bonus. If you have any banking or investment accounts with Bank of America, you can raise those cash-back rates even higher.

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.

What I like about the card

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

  • 3% in your choice category

  • 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 your choice category each quarter

$150 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.

Spending Standard Cash-back Rate Bank of America Customer w/ 10% Bonus Preferred Rewards Gold Preferred Rewards Platinum Preferred Rewards Platinum honors
Your Choice 3% 3.3% 3.75% 4.5% 5.25%
Grocery Stores and Wholesale Clubs 2% 2.2% 2.5% 3% 3.5%
All Other Spending 1% 1.1% 1.25% 1.5% 1.75%

What could be improved

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.

Why you can trust me

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.

What to look for in a cash-back card

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.

Will this card earn you the most cash back?

There are two types of cash-back cards -- cards with bonus categories and cards that earn a flat rate on all spending.

Since the Bank of America® Cash Rewards credit card earns more at gas stations, grocery stores, and wholesale clubs, it’s only worthwhile if you have high spending at those places. Otherwise, you’d be better off with a card that has different bonus categories or a card that earns a flat rate.

In my comparison of the Bank of America® Cash Rewards credit card and the Bank of America® Travel Rewards credit card, I did the math and found that the average consumer would earn more with the latter card. When preferring travel rewards over cash back, it may be the better choice for you. That card earns 1.5 points per $1, but among the leading cash-back cards, there are multiple options that earn 1.5% back.

Suggested credit score

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.

This card is right for you if...

If either of the following are true, then applying for the Bank of America® Cash Rewards credit card is a no-brainer:

  • You have banking or investment accounts with Bank of America, Merrill Lynch, or Merrill Edge.

  • You spend a lot of money on gas.

  • You’re looking for a lucrative sign-up bonus without having to spend a bunch to qualify.

The sign-up bonus is both easy to qualify for and best-in-class, 3% back on gas is an excellent rate, and Bank of America’s customer bonuses can boost your cash back quite a bit.

Since the Bank of America® Cash Rewards credit card has no annual fee, it may be worth getting regardless as a card you use at the pump. But if you’re not a Bank of America customer (or aren’t planning to become one), don’t spend heavily on gas or groceries, or are looking for more than just a sign-up bonus, I’d advise looking at the other top cash-back cards for your primary cash-back card.