The Bank of America Preferred Rewards program is an exclusive program offered to select banking customers who have at least $20,000 in an eligible account with Bank of America. The program has five different tiers, and members receive various perks such as credit card rewards bonuses and interest rate discounts.
One of the most significant benefits of the program is the opportunity to earn more credit card rewards. Bank of America offers rewards boosts ranging from 25 percent to 75 percent for a handful of its credit cards. This means that program members can earn more rewards for each dollar they spend using these credit cards.
In addition to credit card rewards, the program also offers other benefits such as more interest on deposits, lower rates on loans, and bonuses on Bank of America credit card rewards. This added value could be the motivation for customers to use Bank of America to store their emergency savings.
While Bank of America rewards credit cards may not be the most popular on the market, the Preferred Rewards program can be a backdoor move to boost rewards haul. The program could be an excellent option for those who already have a significant amount of assets with Bank of America and are looking to earn more rewards.
Overall, the Bank of America Preferred Rewards program is a valuable opportunity for eligible customers to earn more credit card rewards and enjoy other benefits. Customers who are considering joining the program should carefully evaluate their lifestyle and financial situation to determine whether it makes sense for them.
What is Bank of America Preferred Rewards?
Bank of America Preferred Rewards is a program that offers banking benefits and rewards to its customers who have a qualifying account with the bank. The program is free to join, but customers must meet certain requirements to be eligible for the rewards.
Qualifying accounts for Bank of America Preferred Rewards
To qualify for the Bank of America Preferred Rewards program, customers must have an active and eligible Bank of America checking account that they own or co-own. Additionally, they must hold a minimum three-month combined average daily balance of $20,000 or more across several Bank of America account types. The eligible account types include:
- Bank of America Advantage Banking, savings, money market savings, CDs, and IRAs
- Merrill investment accounts, including IRAs and the Cash Management Account
- Merrill 529 college savings accounts on your banking statement
- Revocable grantor trust accounts
Customers can hold the required balance across any of the eligible account types to qualify for the program.
Disqualified accounts for Bank of America Preferred Rewards
Not all Bank of America accounts are eligible for the Preferred Rewards program. Business accounts or commercial accounts do not qualify for the program. Other disqualified account types include:
- Employee benefit plans, including 401(k) accounts, and annuities managed by Bank of America or Merrill
- Irrevocable trust accounts
- Uniform Transfers to Minors Acts and Uniform Gifts to Minors Act accounts
Customers who meet the eligibility requirements can enjoy benefits such as cash rewards, fee waivers, and interest rate boosts on savings accounts.
What are the Bank of America Preferred Rewards tiers?
Bank of America Preferred Rewards program offers five different tiers based on the balance across accounts on a rolling three-month average. The lowest tier is the Gold tier, followed by Platinum, Platinum Honors, Diamond, and Diamond Honors. Each tier comes with its own set of benefits and rewards.
Gold tier benefits
Gold is the lowest tier in the Bank of America Preferred Rewards program, and it requires a minimum three-month average balance of $20,000 across eligible Bank of America accounts. The Gold tier offers an entry point into the program, with incentives to save even more over time.
The biggest bonuses in this tier come with qualifying Bank of America credit cards and the reduction in mortgage origination fees. Gold members get an additional 25 percent rewards bonus when spending on eligible cards, including the Bank of America® Customized Cash Rewards credit card, Bank of America® Unlimited Cash Rewards credit card, Bank of America® Travel Rewards credit card, and Bank of America® Premium Rewards® credit card.
Other benefits from the Gold tier include a 5 percent interest rate boost on a Bank of America Advantage Savings account, a 0.05 percent program fee discount on a Merrill Guided Investing account, a 0.25 percent interest rate discount on an auto loan, and a 0.125 percent interest rate discount on a home equity line of credit.
Platinum tier benefits
The Platinum tier requires a three-month average balance of $50,000 or more across Bank of America accounts. Members don’t have to request an upgrade from the bank as they will automatically qualify for an upgrade once they hit the savings minimum.
At this tier, members get a 50 percent rewards bonus on eligible Bank of America credit cards, as well as one no-fee transaction at non-Bank of America ATMs per month, for a total of 12 per year. The Platinum tier also sees increased bonuses and discounts for other accounts. Those with a Bank of America Advantage Savings account get a 10 percent interest rate boost, and those who are planning on a new home purchase or current home refinance with Bank of America can get a $400 reduction in origination fees.
Platinum Honors tier benefits
The Platinum Honors tier requires a three-month average balance of $100,000 or more in qualifying accounts. Members at this tier get a 75 percent rewards bonus on eligible Bank of America credit cards, as well as unlimited no-fee transactions at non-Bank of America ATMs across the U.S. and in U.S. territories.
Balances in a Bank of America Advantage Savings account will get a 20 percent interest rate boost while getting discounted interest rates on home equity lines of credit and auto loans. New purchase or home refinance mortgages by Bank of America will get a $600 reduction in origination fees, while Merrill Guided Investing program fees are discounted by 0.15 percent.
Diamond tier benefits
The Diamond tier requires a three-month average balance across accounts of at least $1,000,000. Cardholders in the Diamond tier receive a 75 percent rewards bonus on eligible credit cards and have access to unlimited no-fee transactions at non-Bank of America ATMs across the U.S. and in U.S. territories. Additionally, customers gain a 20 percent interest rate boost on their Bank of America savings account balance.
At the Diamond rewards level, customers enjoy a 0.625 percent interest rate discount on a home equity line of credit, along with a mortgage origination interest rate reduction of 0.250 percent (if a PayPlan is established). The auto-loan interest rate discount at this tier is 0.50 percent, and Merrill Guided Investing program fees are discounted by 0.15 percent.
Diamond Honors tier benefits
The Diamond Honors tier is the highest tier in the Bank of America Preferred Rewards program, and it requires a combined three-month average balance of $10 million. Cardholders in the Diamond Honors tier receive a 75 percent rewards bonus on eligible credit cards and have access to unlimited no-fee transactions at non-Bank of America ATMs across the U.S. and in U.S. territories. A 20 percent interest rate boost on Bank of America savings account balances is also available to Diamond Honors tier members.
At the Diamond Honors reward level, customers enjoy a 0.750 percent interest rate discount on a home equity line of credit, as well as a mortgage origination interest rate reduction of 0.375 percent (if a PayPlan is established). The auto-loan interest rate discount at this tier is also 0.50 percent.
How to Enroll in Bank of America Preferred Rewards
Enrollment Requirements
Bank of America’s Preferred Rewards program is an invite-only program that allows customers to earn rewards based on their rolling three-month combined average daily balance. To qualify for enrollment, a customer must have a minimum of $20,000 deposited across Bank of America accounts and wait at least three months to take advantage of the Preferred Rewards program.
Once qualified, customers will receive an invitation to join the program through online banking. The online system will take a regular count of their three-month average daily balance, and they will be automatically upgraded to the next tier when they qualify. The customer’s benefits are good for one year, giving them plenty of time to stay qualified for the program.
As noted above, eligibility for the program is determined based on how much a customer holds over a rolling three-month period. If a customer’s average daily balance is at one of the five Bank of America Preferred Rewards tiers, they will be invited to join at that status through online banking.
For example, if a customer’s average daily balance is $20,000 in qualifying accounts in month one, and market changes reduce their average daily balance to $15,000 in month two, but strategy changes and additional deposits grow their average daily balance to $35,000 in month three, their average daily balance over that three-month period would be $23,333, which would qualify for an invitation to join with Gold status.
If in month four, their average daily balance was $50,000, they wouldn’t immediately jump to Platinum status because their three-month average would be $33,333. However, if their average daily balance across accounts grew to $65,000 by month five, their three-month average would be $50,000, which would qualify them for an upgrade to Platinum status.
Bank of America Credit Cards in the Preferred Rewards Program
Bank of America offers several credit cards that are eligible for bonuses through the Preferred Rewards program. Depending on the rewards tier, these bonuses can result in best-in-class rewards every time a cardholder uses their card. Here are four of the best Bank of America credit cards for 2024, along with their benefits and features.
Bank of America Premium Rewards: Best for Overall Rewards
The Bank of America Premium Rewards credit card is an excellent choice for those who want to earn rewards on travel and dining purchases. The card offers a rewards rate of 2X points on travel and dining purchases and 1.5X points on all other purchases. Cardholders can earn a welcome bonus of 60,000 online bonus points after spending $,000 on purchases in the first 90 days of account opening. The annual fee for this card is $95.
Even at the Gold tier, the Premium Rewards card’s 25 percent bonus on the 2X and 1.5X categories can help cardholders’ rewards balance add up quickly. Additionally, the card provides flexible redemption options, ranging from travel rewards to cash back. Cardholders also receive up to $100 in annual airline incidental credits and up to a $100 fee reimbursement every four years for Global Entry or TSA PreCheck, providing exceptional value for the annual fee.
Bank of America Customized Cash Rewards: Best for Cash Back Rewards
The Bank of America Customized Cash Rewards credit card is an excellent option for those who want to earn cash back rewards. The card offers a rewards rate of 3 percent cash back on category purchases of choice, including gas & EV charging stations, online shopping (including Cable, Streaming, Internet and Phone services), dining, travel, drugstore or home improvement. Cardholders can also earn 2 percent back at grocery stores and wholesale clubs (up to $2,500 of combined 3 and 2 percent category purchases each quarter, then 1 percent) and 1 percent on all other purchases. The card has no annual fee.
Combined with Preferred Rewards, the Customized Cash Rewards card gives cardholders the most control over how they earn rewards. The 3 percent cash back in the category of choice (on the first $2,500 in combined 3 and 2 percent category purchases each quarter, then 1 percent) can increase to between 3.75 percent and 5.25 percent, depending on the Bank of America Preferred Rewards tier. The 2 percent back at grocery stores and wholesale clubs can also jump to between 2.5 percent and 3.5 percent, depending on the status tier, all without an annual fee.
Bank of America Unlimited Cash Rewards: Best for Unlimited Cash Back Rewards
The Bank of America Unlimited Cash Rewards credit card is an excellent option for those who want to earn unlimited cash back rewards. The card offers a flat-rate rewards rate of 1.5 percent cash back on all purchases, with no annual fee. Preferred Rewards members can also earn boosted earnings depending on the tier.
This flat-rate cash back card can be especially convenient for those who don’t want to track bonus cash back categories or who don’t spend too heavily in specific categories.
Bank of America Travel Rewards: Best for Easy-to-Use Travel Rewards
The Bank of America Travel Rewards credit card is a great option for those who want easy-to-use travel rewards. The card offers an unlimited rewards rate of 1.5X points on all purchases and 3X points on Bank of America Travel Center purchases. Cardholders can earn a welcome bonus of 25,000 bonus points if they make $1,000 in purchases within 90 days of account opening. The card has no annual fee.
Status-holding account holders can earn between 1.875X and 2.625X points with every purchase, with no rewards limit. Cardholders can then use those points for statement credits on travel purchases at around 1 cent per point. However, it’s important to note that rewards cannot be transferred for heightened value like with other travel credit cards, as Bank of America doesn’t offer airline or hotel partners.
The Bottom Line
Bank of America’s Preferred Rewards program offers a variety of bonuses and rewards for account holders who want to save money and build wealth. The program is especially beneficial for those who prioritize cash back rewards. With the Bank of America Preferred Rewards program, account holders can unlock valuable bonuses across categories, leading to more savings and rewards. Additionally, the Bank of America® Premium Rewards® credit card and Bank of America® Customized Cash Rewards credit card offer rewards and bonuses that can be customized to fit individual spending habits and preferences. Overall, Bank of America’s Preferred Rewards program is a great option for those looking to maximize their savings and rewards.