How To Maximize Your Bank of America Customized Cash Rewards
Written by
Suchetana Bhattacharyea
Edited by
Lindsey Kloosterman
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The Bank of America® Customized Cash Rewards credit card is a popular choice for many users. This credit card helps you to earn cash back and rewards for making a variety of transactions. To maximize your Bank of America customized cash rewards, you must know everything about the reward categories and some specific strategies for increasing your rewards.
What Is the Bank of America Customized Cash Rewards Credit Card?
This is a unique credit card that allows users to earn cash back in their selected categories throughout the year. There are no annual fees and users have the option of earning bonuses as well. Since there are no annual fees, the user gets to make the most of the rewards they earn on their purchases.
Cardholders have the benefit of saving money at 0% introductory APR for the first 15 billing cycles and for any balance transfers made within the first 60 days of opening their account. After the introductory period is over, users will be subject to a variable APR which is currently between .
Bank of America Customized Cash Rewards Cash Back
If you have a Bank of America Customized Cash Rewards Credit Card, you can earn cash back in the following ways:
- 3% cash back in the category of your choice – now with expanded categories
- 2% cash back at grocery stores and wholesale clubs (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter)
- 1% cash back on all other purchases.
What Are Some Ways To Maximize Your Bank of America Customized Cash Rewards?
To maximize your Bank of America Customized Cash Rewards, you must understand how you can take advantage of the various cash back options. There is a maximum limit of $2,500 per quarter. This means that once you hit the quarterly limit of $2,500, your cash back will be limited to 1% until you hit the next quarter.
Max Out the Cash Back Categories Strategically
When you are holding a Bank of America Customized Cash Rewards credit card, you get 3% cash back when you spend on a category of your choice. This category can include gas, online shopping, travel, dining, drugstore bills, and home furnishings and improvements. There are now newly expanded 3% categories for gas (to now include Electric Vehicle Charging Stations) and online shopping (to now include cable, streaming, internet and phone services). If you can max out your spending on this category, then you have the chance of earning the highest cash back.
You have the chance of earning $75 per quarter if you can spend $2,500 on the 3% category. Try to look for expenses that will fetch you the highest cash back. For example, when you purchase snacks from Target it will be tagged as a grocery purchase, and you will earn 2% on it. On the other hand, when you buy the same snacks from a gas station, you have the chance of earning 3% cash back.
To maximize your Bank of America Customized Cash rewards, you must remember the categories that give you the highest cash back. Dining and online shopping can also help you earn 3% cash back which means it can be beneficial to order stuff online rather than buying them from a physical store.
The cash back that you earn does not expire which means you have ample time to redeem them. Each month, you have the option of changing your 3% choice category on the online banking portal or mobile banking app. You can change it once every calendar month. Make sure to update the 3% category if you think you have some big expenses coming up.
Does Bank of America Customized Cash Rewards Offer Bonus Rewards?
Your Bank of America Customized Cash Rewards credit card offers several bonus rewards which you need to be aware of. For instance, you get a $200 cash rewards bonus offer when you spend at least $1,000 in purchases within the first 90 days of account opening. If you have some big purchases to make, this bonus offer will technically act as a $200 discount for you.
Move Your Savings to Bank of America or Open an Investment Account With Merrill
You have the chance of significantly increasing your Bank of America Customized Cash rewards when you open a checking or savings account with Bank of America, Member FDIC, or an investment account with Merrill. Loyalty is a big part of earning rewards on this credit card. If you have more than $20,000 across your accounts, the volume of rewards can increase by 20% to 75% because you will be eligible for the Preferred Rewards program.
When you have an account with Bank of America or Merrill, the redemption process of your rewards becomes much easier. You get the benefit of setting direct deposits into your savings or checking accounts.
Keep Spending on the Card
Just like any other credit card, the best way to maximize your Bank of America Customized Cash rewards is by using them more frequently. When you spend more, you have the chance of earning higher cash back.
How Can You Redeem Your Rewards?
Here are a few ways in which you can redeem your Bank of America Customized Cash rewards:
- You can redeem your rewards anytime irrespective of the amount. Such redemption can be done in the form of a statement of credits, deposits made directly into a Bank of America checking or savings account, or credit to an eligible account with Merrill.
- If you wish to redeem your rewards for a contribution to a 529 account with Merrill or a check, you have to pay a minimum of $25.
- Cardholders also have the option of setting up automatic redemptions into an eligible Bank of America or Merrill account. Such automatic redemption rates start at $25. However, statement credits, checks and contributions into a qualifying 529 account are not eligible for automatic redemption.
Maximize Your Bank of America Customized Cash Rewards with Preferred Rewards
One of the best ways to maximize your Bank of America Customized Cash rewards is to become a Preferred Rewards member.
What Is the Preferred Rewards Program?
The Bank of America Preferred Rewards program is a loyalty program that helps users earn rewards on their everyday banking and investing activities. When you grow your deposit balances with Bank of America or Merrill investment accounts, your benefits under this program will also increase.
There are no fees to enroll or participate in Preferred Rewards. However, you need to fulfill the following criteria to earn your membership:
- You must have an active and eligible Bank of America checking account
- You must have an average combined balance of $20,000 in the last three months. This can include balances in your Bank of America deposit and/or Merrill investment accounts.
Your benefits will depend on the tier to which you fall and your tier will be determined by your combined balances in the eligible accounts. Once you are a member of the Preferred Rewards program, you can keep your benefits for at least a year. This means that even if your combined balances fall, you will be eligible to keep your rewards.
How Does the Preferred Rewards Program Help in Maximizing Bank of America Customized Cash Rewards?
There are three tiers in the Preferred Rewards program which are Gold, Platinum, Platinum Honors and Diamond. These tiers are calculated based on your three-month combined average balances. Based on the tier on which you fall, you have the chance of increasing your Bank of America Customized Cash rewards.
Consider the following example to understand how the Preferred Rewards Program will help you in maximizing your rewards. Suppose you make the following purchases with your Bank of America Customized Cash Rewards credit card in a quarter:
| Category of Expenses | Amount | Cash Back |
|---|---|---|
| Gas bills, online shopping, home improvements | $1,200 | -Percentage: 3% -Amount: $36 |
| Grocery bills | $800 | -Percentage: 2% -Amount: $16 |
| Other purchases | $400 | -Percentage: 1% -Amount: $4 |
So, for that quarter you will be earning a total cashback of $56 which comes to 2.33% of the total expenses that you incurred on that card. If you have a Preferred Rewards membership, then your rewards percentage will increase proportionately based on your tier.
| Preferred Rewards Tier | Cash Back Percentage | Cash Back Amount |
|---|---|---|
| Gold | 25% higher, i.e., 2.91% | $70 |
| Platinum | 50% higher, i.e., 3.50% | $84 |
| Platinum Honors and Higher | 75% higher, i.e., 4.08% | $98 |
Final Take
To maximize your Bank of America Customized Cash rewards, you must pay attention to the 3% category of cash back. If you can maintain the required average balances, the Preferred Rewards program can also be very beneficial.
However, you must be careful about overspending. Just because you want to max out your card limits, you should never spend more than you can afford.
Bank of America Customized Cash Rewards FAQ
Here are the answers to some of the most frequently asked questions about Bank of America Customized Cash Rewards.- Are the Bank of America Customized Cash Rewards hard to get?
- It is fairly simple to earn rewards on your Bank of America Customized Cash Rewards credit card. You can earn cashback by simply paying for gas, and groceries, doing online shopping and making other eligible purchases.
- Does Bank of America Customized Cash Rewards expire?
- No, Bank of America Customized Cash Rewards do not expire as long as your credit card is active and in use.
- What can you do with Bank of America Cash Rewards?
- You have the option of redeeming the cashback that you earn as a part of the Bank of America Customized cash rewards.
- Is there a limit on Bank of America Cash Rewards?
- There are no limits on how much you can earn from your Bank of America Customized Cash Rewards credit card. The bonus rewards are capped at $2,500 per quarter in combined spending under the 2% and 3% cash back categories. After that, you can continue to earn 1% cashback until the end of the current quarter.
- What is the credit limit on Bank of America Customized Cash Rewards?
- The minimum credit limit on a Bank of America Customized Cash Rewards credit card is around $1,000 but it can be much higher depending on your combined balances and creditworthiness.
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