Bank of America announced a new Bank of America Cash Rewards credit card that gives clients the flexibility to choose how they earn rewards based on their changing priorities and interests. The option is now live and you can go ahead and choose your favorite categories.
Bank of America Cash Rewards 3% Categories
Beginning the week of January 14, cardholders will be able to choose how they earn their 3% cash back from one of six popular categories. These categories are:
- Online shopping
- Drug stores
- Home Improvement & Furnishings
The card will continue to earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases.
Clients can easily change the 3% category for future purchases once each calendar month in their Mobile Banking app or in Online Banking, or make no change and it stays the same. The 3% cash back category will initially be set to gas, so you will at least earn that rate in one category, even if you forget to set it. The ability to choose the 3% category will automatically be applied to existing Cash Rewards accounts and all new Cash Rewards cards starting in mid-January, when the new card is introduced.
What makes these rates even more interesting is Bank of America’s Preferred Rewards program can get a 25% to 75% rewards bonus on every purchase. That means the 3 percent choice category could go up to 5.25 percent; the 2 percent at grocery stores and wholesale clubs could go up to 3.5 percent; and the unlimited 1 percent for all other purchases could go up to 1.75 percent.
More Redemption Options
Bank of America is also adding more flexible redemption options, such as the ability to redeem for credit into an eligible 529 account or having no minimum requirement when making a one-time redemption into an eligible Bank of America account.
This new feature makes the card more useful as you can set it to earn 3% on your favorite category. With the Preferred Rewards program, you can increase that rate as high as 5.25%, which is huge for some of these eligible categories.
Read press release.