Bank of America is about to launch a new rewards credit card in September, and hereâ€™s the skinny on what you need to know.
The Bank of America Premium Rewards card will reward new cardholders with 50,000 points after spending $3,000 within the first three months of account opening. When you compare this card to the premium cards issued by other banks, youâ€™ll notice that the minimum-spending requirement is lower than the $4,000 on theÂ Chase Sapphire PreferredÂ or the $4,000 on the Citi ThankYou Premier Card.
The annual fee on the BofA Rewards Card will be $95, which is comparable with most mid-range rewards cards on the market right now. Both cards mentioned above carry annual fees of $95, waived for the first year. It appears that the Bank of America rewards card will charge the fee for the first year.
Rewards Earning Rate
This is where it gets interesting. The card will earn 2X points per dollar spent on travel and dining and 1.5X points per dollar spent in all other categories. However, those Bank of America customers who have at least $20,000 deposited into a BofA checking, savings or investment accounts will earn more.
- $20,000 â€“ $49,999 deposited: 2.5X points on travel and dining, 1.875X points on everything else
- $50,000 â€“ $99,999 deposited: 3X points on travel and dining, 2.25X points on everything else
- $100,000 and more deposited: 3.5X points per dollar on travel and dining, 2.6X points on everything else
Thereâ€™s no doubt that the Bank of America Rewards Card will benefit those who are well off and already have an established relationship with the bank. The strategy makes an attempt at eliminating competition by motivating customers to do all their banking at one place.
Other Card Benefits
In addition to a generous rewards earning rate, the card will come with a $100 airline fee credit that can be used toward checked luggage, in-flight meals, entertainment, etc. At the moment, it is not clear which airlines are eligible or whether gift cards would qualify for the rebate. Taking advantage of the credit will erase the annual fee of $95 and make the card attractive to those Bank of Americaâ€™s Preferred Rewards clients looking to keep it long-term.
Is the Card Worth Signing Up For?
It doesnâ€™t seem that the card would have any travel partners, and the points are not transferable, so thatâ€™s a major drawback. It is important to know how exactly the redemption aspect of the card would work as well as the pointsâ€™ value when redeemed for travel purchases before determining the cardâ€™s true value. But the sign-up bonus alone can be enough for some customers to put this card in their â€œyesâ€? pile of new applications.
Please share your thoughts about the Bank of America Premium Rewards Card in the comments.