Why?
Well, let’s start with the fact that this card offers 3% on the category of your choice. That’s almost unheard of. Rather than having to keep up with the rotating categories, you choose one that works best for your spending habits.
And there is no annual fee – so getting and keeping the card is not going to cost you any money whatsoever.
Plus, The Bank of America® Cash Rewards Card also offers an introductory APR – which is perfect for anyone who wants to transfer their high balances to a new card, and pay it off in a timely manner.
To learn more about why I keep the Bank of America® Cash Rewards Card in my wallet, read my full review below.
Key facts
- Best for those with good or excellent credit: The Bank of America® Cash Rewards Card is available for those with good or excellent credit. If your credit doesn’t meet that criteria, try applying for some other credit card offers that specialize in those with fair or poor credit.
- Introductory APR: The Bank of America® Cash Rewards Card has a very generous introductory offer.
- Introductory bonus offer: The Bank of America® Cash Rewards sign-up bonus is on the low side, at $200, but it’s extremely easy to qualify for. You only need to spend $1,000 in purchases within the first 90 days of opening your account to qualify. Most people can do that with very little effort.
- 3% cash back on a spending category of your choice. You can choose from gasoline, online shopping, dining, travel, drugstores, or home-improvement/furnishings. You can even change your preferred spending category on a monthly basis to better accommodate your upcoming spending patterns. You’ll also get 2% cash back on grocery stores and wholesale clubs. The 3% and 2% cash back categories are good on combined purchases of up to $2,500 per quarter. You’ll then get 1% unlimited cashback on all other purchases.
- Annual Fee – $0. It makes the card super attractive to get since you don’t have to pay a yearly fee to keep the card.
- Cash back never expires: There’s no limit on how much you can earn in total cash back rewards, and they never expire as long as your account remains open and in good standing.
- Multiple rewards redemptions options: You can take your cash back rewards in the form of statement credits, deposits made directly into a Bank of America checking or savings account, for credit to a qualifying Cash Management Account or qualifying 529 with Merrill, as well as checks mailed directly to you. No minimum rewards redemption requirement for a statement credit, credit to a qualifying Cash Management Account with Merrill, or electronic deposits into a Bank of America checking or savings account. A minimum of $25 applies for all other options.
- Variable APR: See Terms.
In-depth analysis
Unlike many competing credit cards, the Bank of America® Cash Rewards Card is strong in nearly every credit card benefit category.
One of the easiest cash back rewards in the credit card industry
There are other credit cards that offer enhanced rewards on rotating categories. And while those rewards may be higher than those offered by Bank of America® Cash Rewards, they’re also more complicated. With a typical revolving rewards card, you’ll have no choice over the available categories. Bank of America® Cash Rewards lets you choose your 3% category, then gives you the ability to change it monthly.
The 2% cash back category applies to grocery stores and wholesale clubs, which nearly everyone shops at. And while most other revolving category credit cards cap your quarterly purchases at $1,500, Bank of America® Cash Rewards extends it to $2,500. Dollar-for-dollar, you may get the same amount of rewards on Bank of America® Cash Rewards Card’s 3% category as you will on other credit cards offering 5% categories.
And like most other cards, you’ll also get unlimited 1% cash back on all other purchases.
True cash back rewards card with multiple redemption options
Some credit cards allow you to redeem your rewards for statement credits, while others apply them toward the purchase of select gift cards. But the Bank of America® Cash Rewards Card gives you more than a half-dozen redemption options, including statement credits, receiving a check, having funds deposited into your Bank of America checking or savings account, or even electronically transferred to a Merrill investment account. It’s your choice!
No cap on rewards
Cash back rewards are unlimited on the 1% purchase category. But as mentioned above, you are limited to total purchases of $2,500 per quarter on the 3% and 2% rewards categories.
Still, if you max out the 3% and 2% rewards categories each quarter, there will be a total of $10,000 in purchases, earning an average of $250 in cash back rewards.
Rewards don’t expire
Your cash back rewards don’t expire as long as your account is open and in good standing.
Sign-up bonus
Bank of America® Cash Rewards doesn’t have the most generous sign-up bonus in the credit card industry. But what it lacks in size it makes up for in ease of qualifying.
You can earn $200 cash back just for spending $1,000 within 90 days of opening your account. Most people can reach that level just by using the card for incidental purchases.
Introductory APR
The Bank of America® Cash Rewards Card doesn’t come with the most generous 0% introductory APR offer in the industry, but it comes close. And it’s truly generous when you consider the cash back rewards that come with this card.
Annual Fee
There is no annual fee for the card which is HUGE – at least for me. I hate having to spend money for credit cards with annual fees. It’s usually a deal-breaker for me. Not always, but usually!
Travel perks
Strictly speaking, the Bank of America® Cash Rewards Card is not specifically a travel rewards card. But they do offer Trip Cancellation and Interruption
Protection in case a trip gets canceled or cut short because you or an eligible family member are injured or become sick. You can be reimbursed for the unused non-refundable portion of the common carrier passenger fee.
Bank of America Preferred Rewards
Bank of America offers their Preferred Rewards program for customers who have an eligible Bank of America personal checking or Advantage Banking account, and maintain certain three-month average combined balances, along with a qualified Merrill Investment account.
The program is offered in three tiers:
- Gold – Combined balances of at least $20,000 – 25% rewards enhancement.
- Platinum – Combined balances of at least $50,000 – 50% rewards enhancement.
- Platinum Honors – Combined balances of at least $100,000 – 75% rewards enhancement.
Other card benefits
- Free FICO score – Get your monthly TransUnion educational score.
- $0 Liability Guarantee – You’re covered if fraudulent charges are made to your card. But Bank of America attempts to block fraud when detected, and alert you of the activity.
- Overdraft Protection – Connect your card to your Bank of America checking account to prevent going over the limit on your card.
- Digital Wallet – When you add your Bank of America credit card to your mobile device you can shop in-store or in-app using Apple Pay, Google Pay, or Samsung Pay.
- Customer service – Available by toll-free phone or live chat 24 hours a day, seven days a week.
Interest rates and fees
- Annual Fee: $0.
- Cash advance fee: The greater of 3% of the amount of each advance, or $10, but the greater of 5% or $10 for ATM, over-the-counter, same-day online and cash equivalent cash advances
- Balance transfer fee: See Terms.
- Foreign transaction fees: See Terms.
- Late payment or return payment fee: $39 for late payments, $28 for return payments.
How much can I earn using the Bank of America® Cash Rewards Card?
To help you see how much you can earn with the Bank of America® Cash Rewards Card, I’m presenting two scenarios. The budget spender assumes you will charge $1,000 per month on the card. The premium spender assumes $2,000 per month.
As you will see from the tables below, you will earn $600 in the first year, then $350 per year as a Budget Spender. As a Premium Spender you can earn $850 in the first year, then $700 per year thereafter.
Budget spender – $1,000 monthly credit card spending:
| Spending category | Spending per month | Earnings after 1 year | Earnings in subsequent years |
|---|---|---|---|
| 3% category – dining | $500 | $180 | $180 |
| 2% category – groceries | $300 | $72 | $72 |
| Other purchases | $200 | $24 | $24 |
| Sign-up bonus | — | $200 | $0 |
| Annual fee | — | $0 | $0 |
| Total earnings | — | $476 | $276 |
Premium spender – $2,000 monthly credit card spending
| Spending category | Spending per month | Earnings after 1 year | Earnings in subsequent years |
|---|---|---|---|
| 3% category – dining | $400 | $144 | $144 |
| 2% category – groceries | $400 | $96 | $96 |
| Other purchases | $1,200 | $144 | $144 |
| Sign-up bonus | — | $200 | $0 |
| Annual fee | — | $0 | $0 |
| Total earnings | — | $584 | $384 |
Pros & cons
Pros
- 0% introductory APR on both purchases and balance transfers — Good for a full 18 statement cycles.
- 3% cash back rewards — You choose the spending category, which you can change on a monthly basis.
- Enhanced rewards for Bank of America customers — Earn an additional 25% to 75% more cash back if you are a Preferred Rewards customer.
- Multiple cash rewards redemption options — Can be taken as statement credits, a check mailed directly to you, or deposits into a Bank of America deposit account or Merrill Investment account.
- Easy sign-up bonus — Earn $200 after spending just $1,000 within the first 90 days.
- No annual fee — You won’t have to shell out any money for this credit card which is HUGE in my book!
Cons
- Small sign-up bonus — The bonus of just $200 is small compared to many competitors.
- No significant travel benefits — Trip cancellation/interruption is the only listed travel benefit.
- Foreign transaction fee — 3% fee charged on international transactions.
- Contingent premium rewards — You must be a Bank of America or Merrill Investment client and meet minimum average monthly balance requirements to qualify for Premium Rewards.
Bank of America® Cash Rewards Card vs. Bank of America® Travel Rewards Visa® Card
| Card feature | Bank of America® Cash Rewards credit card | Bank of America® Travel Rewards credit card |
|---|---|---|
| Cash back | 3% on category of your choice, plus 2% at grocery stores or wholesale clubs, plus unlimited 1% on all other purchases | Unlimited 1.5 points for every $1 spent on all purchases |
| Intro offer | $200 online cash reward bonus after spending $1,000 in the first 90 days. | 25,000 bonus points – worth $250 – after spending at least $1,000 in the first 90 days |
| Introductory APR | 0% Intro APR for 18 billing cycles on purchases and balance transfers | 0% Intro APR for 18 billing cycles on purchases |
| APR | See Terms | See Terms |
| Annual fee | $0 | $0 |
Though both the Bank of America® Cash Rewards Card and the Bank of America® Travel Rewards Visa® Card are issued by the same bank, both the benefits and the overall purpose of each card is very different.
Bank of America® Cash Rewards is a general-purpose credit card, offering enhanced cash back rewards on common purchase categories.
As the name implies, the Bank of America® Travel Rewards Visa® Card is designed with a strong slant toward travel. The unlimited 1.5 points on all purchases extend to travel, while Bank of America® Cash Rewards generally allows 1% cash back on travel, though you can select travel for the 3% cash back option.
But Bank of America® Travel Rewards Visa® Card charges no foreign transaction fees, while the Bank of America® Cash Rewards does have a fee. That makes Bank of America® Travel Rewards Visa® Card the superior card for international travel, while Bank of America® Cash Rewards is the better deal for general spending.
Should you sign up for the Bank of America® Cash Rewards Card?
Bank of America® Cash Rewards rates high on our list as an outstanding all-around rewards credit card. The 3% enhanced rewards on a category of your choice is one of the most generous offers in the industry. It’s made even sweeter by the 2% cash back on grocery stores and wholesale clubs, as well as unlimited 1% cash back on all other purchases.
But the rewards you’ll earn with the card will get a powerful boost if you are also a Bank of America or Merrill Lynch/Edge client, and qualify under one of the three Preferred Rewards categories. That will give you a jump in your cash rewards of between 25% and 75%, making this one of the most generous rewards cards available anywhere.
And if the rewards aren’t enough, don’t forget this card comes with $0 annual fee.
If the Bank of America® Cash Rewards Card has a weakness it’s the sign-up bonus. Though it’s easy to qualify for, with just $1,000 in purchases within the first 90 days of account opening, the bonus is just $200.
But if you can overlook that very small chink in this card’s armor, the Bank of America® Cash Rewards Card will be an excellent addition to your credit card lineup.
Summary
The Bank of America® Cash Rewards Card is one of the most flexible cash rewards cards on the market. It’s one of the only cards that lets you choose your rotating category, so you can always get 3% back on your most common spending categories.
And there’s no annual fee!
Combine that with 2% back on groceries and wholesale clubs, and 1% back on all other purchases, and you’ve got a cash back card that can really earn you money.