The Bank of America® Customized Cash Rewards credit card is a worthy addition to most wallets. Its rewards structure is most attractive as part of a broader cash back strategy, and it gets even better if you have at least $20,000 in deposits or investments with the bank.
Cardholders who carry balances from month to month can benefit from lengthy 0 percent interest promotions on balance transfers and new purchases.
What are the key benefits and who is best suited for this card? Read on to find out.
Details of the Bank of America Customized Cash Rewards credit card
This card is best known for offering 3 percent cash back on a category of your choosing from the following list: gas, online shopping, dining, travel, drugstores and home improvements/furnishings. You can change your selection every month if you wish.
Plus, all cardholders get 2 percent cash back at grocery stores and wholesale clubs. The 3 percent and 2 percent categories are capped at a combined $2,500 in quarterly spending. All other purchases earn 1 percent cash back.
Thanks to the Preferred Rewards program, cardholders who have at least $20,000 in eligible deposits or investments with Bank of America or its subsidiary Merrill Lynch get a 25 percent rewards boost. That means the 3 percent cash back category becomes 3.75 percent; the 2 percent category rises to 2.5 percent; and the 1 percent category is 1.25 percent.
If you have at least $50,000 in eligible deposits/investments, your rewards stretch 50 percent further (so the categories pay 4.5 percent, 3 percent and 1.5 percent cash back, respectively).
And if you have at least $100,000 on file, there’s a 75 percent bonus. That turns the 3 percent category into a whopping 5.25 percent cash back; the 2 percent category becomes 3.5 percent; and the 1 percent category earns 1.75 percent. Those are stellar returns, particularly from a card that does not charge an annual fee.
Is the Bank of America Customized Cash Rewards credit card worth it?
I’d say yes, even if you don’t have a spare 100 grand around the house. But I wouldn’t suggest making this your primary card unless you can hit that top Preferred Rewards threshold.
It’s best to focus on the top-earning category
If you’re going to use one card for everything, you’d probably be better off with a no-annual-fee card that gives an unlimited 2 percent cash back on all purchases. (Examples include the Wells Fargo Active Cash℠ Card and the Citi® Double Cash Card, which technically gives 1 percent cash back when you make a purchase and another 1 percent when you pay it off.) The more you spend on the Customized Cash card, outside of the bonus categories, the less likely you are to top an overall 2 percent return.