The Definitive Guide to Bank of America Preferred Rewards
Boost your credit card rewards with Bank of America Preferred Rewards.
Bank of America cards are some of our top-rated credit cards for cash back and flexible travel rewards. But customers can get the most value out of Bank of America's credit cards by joining the Preferred Rewards program.
Qualifying banking customers can earn up to a 75% bonus on cash back and travel point redemptions on the following cards:
- Bank of America® Cash Rewards credit card
- Bank of America® Travel Rewards credit card
- Bank of America® Premium Rewards credit card
Here's everything you need to know about the Bank of America Preferred Rewards program.
How to qualify
To qualify for Bank of America Preferred Rewards, you need a Bank of America checking account and a three-month average deposit balance of $20,000 in your banking accounts and Merrill Edge and Merrill Lynch investment accounts. There are three tiers based on your deposit level.
The best part is that balances are combined across checking, savings, and Merrill Edge brokerage accounts. So if you have an investment account (including IRAs) of at least $20,000, you can qualify for Preferred Rewards through a Merrill Edge account. Note that you'll still have to open a checking account with Bank of America.
Members will keep their status for as long as they maintain the minimum deposit balance threshold across their Bank of America and Merrill Edge accounts. If the balance falls below a threshold, members will maintain their status for 12 months. They will then have three months to bring their average balance back up to the threshold level to maintain status.
For example, if a customer has $50,000 in an IRA with Merrill Edge but the market takes a turn and the balance falls to $40,000, he or she will maintain Platinum Status for 12 months. If the market still hasn't recovered in a year, the customer can deposit some money in a Bank of America checking or savings account or a Merill Edge brokerage account to bring the combined balance back up to $50,000 on average over the next three months. Otherwise, the membership level will fall to Gold.
Benefits for Bank of America® Cash Rewards cardholders
The Bank of America® Cash Rewards credit card earns 1% cash back on everyday purchases, 2% at grocery stores and wholesale clubs, and 3% at gas stations (bonus category cash back is capped at $2,500 of spending per quarter.) But with Preferred Rewards, members can earn a lot more.
- Gold members earn a 25% bonus on cash back
- Platinum members a 50% bonus
- Platinum Honors members a 75% bonus.
Benefits for Bank of America® Travel Rewards cardholders
The Bank of America® Travel Rewards credit card earns a flat 1.5 points per dollar on all purchases. Each point can be redeemed for $0.01 toward travel purchases. The same bonus rates (25%, 50%, 75%) apply for the Bank of America® Travel Rewards card based on Preferred Rewards status.
|Points per dollar||1.875||2.25||2.625|
Preferred Rewards with Platinum or better status can earn over 2% back in travel rewards on every purchase with the Bank of America® Travel Rewards credit card. That's better than any other travel rewards card with no annual fee we've reviewed.
Other Preferred Rewards benefits
Preferred Rewards members get a whole host of other banking benefits based on their status. Here's a quick rundown of the various benefits.
|Banking service fees||$0||$0||$0|
|Savings account interest-rate boost||5%||10%||20%|
|ATM transaction fee reimbursement||None||12/month||Unlimited|
|Free trades through Merrill Edge||None||30/month||100/month|
|Mortgage origination fee discount||$200||$400||$600|
|Auto loan interest-rate discount||0.25%||0.35%||0.50%|
All Preferred Rewards members won't have to pay any standard service fees on their Bank of America checking and savings accounts, and they'll get a slight boost to the interest rates on their savings accounts. Customers with additional banking needs will receive a nice discount on loan services as well.
Overall, the Preferred Rewards program is a great option, especially for consumers that already have a relationship with Bank of America. The real value comes from the bonus on credit card spend, making the Bank of America® Travel Rewards credit card and Bank of America® Cash Rewards credit card much more valuable for high-value banking customers. With the bonus of free trades on Merrill Edge accounts and no service fees on bank accounts, Preferred Rewards can help consumers save a lot of money.