Credit card guide
Earning cash back from your rewards credit card is always a plus, but being able to tailor your cash back bonus categories month to month is even better. You may do exactly that with the Bank of America® Customized Cash Rewards credit card.
You'll be able to customize the categories where you may earn the most cash back, as part of a rising trend of "choice" category rewards cards. To help you understand everything the Customized Cash Incentives card has to offer and how the cash back rewards operate, we've put together a helpful benefits guide.
The Bank of America Customized Cash Benefits credit card may appeal to people who are only interested in cash back perks. It does not include a complicated points system or fancy trip rewards. Though the cash-back system has its drawbacks, its simplicity makes it a viable alternative for individuals who don't require many extras.
The card gives you 3% cash back in any qualifying category, 2% at grocery shops and wholesale clubs (up to $2,500 in combined chosen category/grocery store/wholesale club quarterly expenditures), and an unlimited 1% on everything else.
One good feature of the choose-your-category option: Bank of America has a good selection of categories from which to choose. Gas is the default, but a cardholder can also select from online shopping, restaurants, travel, pharmacy shops, and home renovation & furnishings.
Though the card has a few flaws, which we'll discuss below, the bonus offer and fair everyday cash back benefits make it a good beginner rewards card as well as an average card for seasoned rewards players.
Benefits of the Bank of America Customized Cash Rewards card in a nutshell
Details on the Feature Card
- After spending $1,000 within the first 90 days of account setup, you will get a $200 sign-up bonus.
- 3% cash back on purchases in your preferred category, such as petrol, online shopping, eating, travel, pharmacy, or home improvement.
- 2% cash back at food shops and wholesale clubs (up to $2,500 in combined 3 and 2% category purchases per quarter, then 1%).
- All other purchases are subject to a 1% surcharge.
- There is no annual cost.
- APR ranges from 13.99 percent to 23.99 percent (variable)
- Additional advantages
- Purchase protections and travel advantages are among the Visa Signature features.
Customized Cash Rewards from Bank of America Earning Rewards with a Credit Card
This card has the advantage of allowing you to earn cash back in the areas where you spend the most. Gas, internet shopping, restaurants, vacation, pharmacy, home renovation, and home furnishings are all eligible for 3% cash back. Then you may get 2% back at participating grocery shops and wholesale clubs. Cash back earnings for your 2% and 3% categories are capped at $2,500 each quarter. You'll get 1% back on your purchases after you hit this threshold.
This rewards system has the advantage of allowing you to alter your preferred category as much as once a month. Furthermore, the online buying area allows you to significantly increase your cash back potential.
If you're remodeling a room one month and vacationing the next, earning in the category that corresponds to your expenditure can help you optimize your benefits. This option might help you get the maximum rewards back because you can make the adjustment fast and conveniently online.
Membership in the Bank of America Preferred Rewards program
It's also worth mentioning that based on your status as a member of the Bank of America Preferred Rewards program, you can increase your earnings rate by up to 75%. You must own or co-own an active and eligible Bank of America checking account and have a minimum three-month aggregate average daily balance of $20,000 or more across all eligible Bank of America account types to qualify as a member.
Based on your Preferred Rewards tier, here's how much you may increase your cash back rate:
- Gold Preferred Rewards—25% off
- Platinum Preferred Rewards—50 percent off
- 75 percent Preferred Rewards Platinum Honors
Other perks include reductions on investment services, mortgage origination costs, HELOC and vehicle loan interest rates, and no charge for some banking services as a Preferred Rewards member.
Redeeming Prizes
The Bank of America Customized Cash Rewards credit card makes redeeming rewards simple and clear. You have the option of receiving your prizes in one of the following ways:
- Any amount as a statement credit
- As a direct payment into a Bank of America account that qualifies
- Any money will be credited to an eligible Merrill account.
- As a check, with a $25 minimum redemption
- Contribution to a Merrill Lynch 529 plan with a $25 minimum redemption
You may also set up automatic withdrawals to a Bank of America or Merrill Lynch account, as long as the withdrawals are valued at least $25. There are no additional redemption methods that are eligible for automation.
No worries if you forget to claim your rewards; they won't expire as long as your account is active.
Potential Reward
To assess the rewards potential of the Bank of America Customized Cash Rewards credit card, we must look at the bonus categories and figure out how much an average American household would spend in those categories. Forbes Advisor calculates baseline income and expenditure averages across numerous categories using data from various government organizations. We base our expenditures on the income of the 70th percentile of wage-earning households, which is $100,172 per year.
The following bonus categories are available with the Bank of America Customized Cash Rewards credit card:
- Get 3% cash back on a certain category (we chose restaurants)
- Get 2% cash back when you shop at food retailers.
- On all other purchases, you'll get 1% cash back.
According to Forbes Advisor, our hypothetical family spends $4,406 on eating each year, resulting in $132.18 in cash back. The $5,687 spent on groceries by this family would earn $113.74 in cash back, while the remaining $16,317 that may be charged to a credit card would earn $136.17 in cash back. This implies that, in addition to the welcome bonus received in the first year, the card would earn a total of $409.09 in cash back every year.
A sign-up bonus and a 0% APR
This no-fee credit card not only allows you to earn recurring cash back benefits, but it also comes with a sizable sign-up bonus. After spending $1,000 within the first 90 days of opening the account, you'll receive $200 in online cash rewards.
The introductory 0% APR offer on this card is also a beneficial benefit, as it may help you pay off any higher-interest debt you may have. On both purchases and balance transfers, you'll earn a 0% APR for 15 payment cycles. Within the first 60 days of creating your account, you must execute your balance transfer. There is a 3% charge (minimum $10) that must be paid. The APR will increase from 13.99 percent to 23.99 percent once the 15-month promotional deal expires (variable).
Additional advantages and safeguards
Signature on a Visa
There won't be many premium features because this isn't a high-end travel credit card. However, there are a number of benefits to having a Visa Signature card, including:
- Warranty protection
- Invest in security.
- Concierge
- Dispatch from the roadside
- Compensation for misplaced baggage
- Assistance with travel and emergencies
- Collision damage waiver insurance for car rentals
BankAmeriDeals
BankAmeriDeals is a limited-time offer program tied to a credit card, comparable to Amex Offers or Chase Offers. You may earn an additional 5% to 15% cash back at select restaurants and other participating retailers when you activate specific promotional offers on your account. You may earn "coins" for utilizing the service, which can be used to acquire even greater rates. With BankAmeriDeals, you won't make a lot of money back, but it's a feature that will help you earn more.
We Have Museums On Us
This advantage has been available for quite some time. For more than two decades, all Bank of America credit and debit cards have provided cardholders with free public entry to more than 225 "culture institutions" on the first weekend of each month. To obtain free admission, simply provide your Bank of America card and a valid picture ID.
In the end,
The Bank of America Customize Cash card doesn't have the best cash back rates, since some rotating category cards provide up to 5% back on certain bonus categories. However, receiving 3% back on your category is far better than the 1 to 2% back given by other flat-rate cash back cards on the market.
This Bank of America credit card deserves serious consideration for a slot in your wallet because it has no annual fee, a solid welcome bonus, and a large introductory APR offer as auxiliary benefits to its fair cash back rate. When you include in the Visa Signature network's safeguards and advantages, the card's net worth becomes increasingly clearer.
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