Customise your rewards construction: Financial institution of America Custom-made Money Rewards bank card overview
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Financial institution of America Custom-made Money Rewards bank card overview
The Financial institution of America® Custom-made Money Rewards bank card is a strong cash-back bank card, providing a customizable rewards construction that’s nice for anybody whose spending habits change all year long. The cardboard can turn out to be particularly profitable for anybody with important banking or investing relationships with Financial institution of America. Card Score*: ⭐⭐⭐½
*Card Score relies on the opinion of TPG’s editors and isn’t influenced by the cardboard issuer.
Though Financial institution of America’s bank card lineup will not be as flashy because the journey playing cards provided by issuers like Chase or Amex, that doesn’t imply it is best to rely them out when contemplating your rewards technique.
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A few of these playing cards have loads to supply — particularly for those who’re an present Financial institution of America buyer. The Financial institution of America Custom-made Money Rewards bank card, for instance, gives a novel choose-your-bonus-spending-category rewards construction and an easy-to-hit sign-up bonus which may earn it a spot in your pockets.
Who is that this card for?
Understand that the cardboard limits its bonus classes to $2,500 in mixed spending every quarter, so those that spend greater than which may discover extra worth with one other card. Moreover, the redemption choices are greatest suited to these with present Financial institution of America accounts.
The cardboard earns money again, which may be redeemed within the type of a press release credit score or deposited into eligible Financial institution of America or Merrill accounts. You don’t have to fret about level valuations or a variety of potential redemption choices – one thing which may not attraction to frequent vacationers who can typically get extra worth by taking the time to strategize redemptions. Inexperienced persons, nevertheless, may benefit from the simplicity of the redemption course of.
Stable $200 welcome bonus
The Financial institution of America Custom-made Money Rewards bank card gives a modest $200 cash-back bonus after spending $1,000 on purchases inside the first 90 days of account opening. It’s definitely not essentially the most aggressive bonus on the market, but it surely’s straightforward to earn and on par with different no-annual-fee bank card bonuses.
If you happen to’re all for journey, particularly, a $200 bonus isn’t going to get you a round-trip ticket internationally, however yow will discover some home fares for below $200, relying on the place you reside. Plus, $200 is a pleasant low cost on a dearer aircraft ticket. You can even use the bonus money again to cowl normal bills, which can be preferable for individuals who aren’t touring anytime quickly.
Associated: Money again versus points-and-miles bank cards
Essential perks and advantages
It is a cash-back bank card that prices no annual payment, so don’t anticipate any premium advantages like lounge entry or journey credit. The cardboard’s important asset is its rewards construction, which we’ll dig into beneath. In any other case, the cardboard gives commonplace bank card protections and advantages, together with account alerts, a strategy to examine your FICO rating free of charge and fraud safety.
Incomes
Cardholders earn 3% money again on one of many following classes of their selecting: fuel, on-line purchasing, eating, journey, drug shops or dwelling enchancment/furnishings. You’ll additionally earn 2% money again at grocery shops and wholesale golf equipment. Be aware that there’s a $2,500 cap on mixed 3% and a pair of% cash-back purchases every quarter. Past that, you’ll earn 1% money again.
The entire bonus classes are pretty broad. Journey consists of conventional bills like airfare and resorts, plus transit, dwelling leases on Airbnb, vacationer sights and extra.
Eating consists of each dine-in and takeout. The pharmacy class consists of something purchased at a drugstore, from prescription purchases to present playing cards to batteries. The house enchancment class counts ironmongery shop purchases and companies like landscaping, plumbing, electrical and extra.
Gasoline consists of fuel stations and marinas, so you’ll be able to earn cash filling up your automotive or your boat (excellent for anybody planning a home lake getaway versus a world journey this yr). On-line purchasing can also be a broad class that’s straightforward to make use of.
Financial institution of America means that you can change your chosen 3% cash-back class every month, so you’ll be able to simply customise this rewards construction to suit your wants. Occurring a visit within the winter? Choose journey as your bonus class for the month you e-book your journey. Plan on changing among the plumbing in your rest room within the fall? Choose dwelling companies that month to earn bonus rewards on the service.
Maximizing money again with Most well-liked Rewards
In case you are eligible to enroll in Financial institution of America Most well-liked Rewards, this card may earn much more money again. You’ll want an eligible Financial institution of America private checking account and a three-month common mixed stability of $20,000 or extra in a Financial institution of America account and/or Merrill funding accounts to enroll. There are three tiers you’ll be able to fall into based mostly in your three-month common account stability, and also you earn a cash-back bonus of between 25%-75% relying in your tier. Right here’s the way it all provides up.
| Spending classes | Common cardholder | Tier 1 – Gold ($20,000 – $49,999)
25% bonus |
Tier 2 – Platinum ($50,000 – $99,999)
50% bonus |
Tier 3 – Platinum Honors ($100,000+)
75% bonus |
|---|---|---|---|---|
| 3% bonus class | 3% money again | 3.75% money again | 4.5% money again | 5.25% money again |
| 2% bonus classes | 2% money again | 2.5% money again | 3% money again | 3.5% money again |
| Different spending | 1% money again | 1.25% money again | 1.5% money again | 1.75% money again |
The Most well-liked Rewards program additionally gives an interest-rate booster for eligible financial savings accounts amongst different banking and funding perks.
If you happen to qualify for Platinum Honors, you’ll be able to earn as much as $131.25 in bonus money again every quarter. That’s $525 yearly for under $10,000 in annual bonus-category spending. Take note, this card doesn’t cost an annual payment, so for individuals who already qualify for the Most well-liked Rewards program, you’re basically getting as much as $525 in free bonus money again yearly.
Associated: Cease ignoring Financial institution of America’s Most well-liked Rewards program
Redeeming
Sadly, the redemption choices for the Financial institution of America Custom-made Money Rewards bank card are restricted. You at the moment have 4 choices:
- Redeem your money again as a press release credit score.
- Deposit your money again into an eligible Financial institution of America checking or financial savings account or an eligible Merrill account.
- Redeem as a contribution to a qualifying 529 plan with Merrill.
- Redeem for a examine beginning at $25.
In case you are an present Financial institution of America or Merrill buyer, you’ll be able to simply use your money again to contribute to your accounts. Nonetheless, for those who’re hoping to search out added worth by redeeming for journey, this card isn’t the very best match.
Money again has a fixed-rate worth (1% is price 1 cent per greenback). Though savvy vacationers may discover money again lackluster as a rewards choice, newbie vacationers or these simply on the lookout for a strategy to save on on a regular basis bills will benefit from the simplicity of the rewards program. You don’t have to fret about rewards valuations shifting or subpar redemption choices. Irrespective of how you propose on redeeming, you’re getting the identical worth out of money again.
Which playing cards compete with the Financial institution of America Custom-made Money Rewards?
For present Financial institution of America prospects, different Financial institution of America bank cards are essentially the most direct opponents of the Financial institution of America Custom-made Money Rewards card.
For instance, the Financial institution of America®️ Premium Rewards®️ bank card gives limitless 2 factors per greenback on journey and eating, and 1.5 factors per greenback on all different purchases, plus the next sign-up bonus and perks, like as much as $100 in annual airline incidental assertion credit, a World Entry/TSA PreCheck utility payment credit score (as much as $100) and journey protections. It additionally prices a $95 annual payment.
The Financial institution of America® Journey Rewards bank card gives limitless 1.5 factors per greenback on all purchases and the next sign-up bonus of 25,000 bonus factors (price $250 in assertion credit towards eating and journey) after spending $1,000 on purchases within the first 90 days of account opening, and doesn’t cost an annual payment.
If you happen to’re on the lookout for a card with an even bigger welcome bonus or easier incomes construction, both of those two could be a greater match.
Upon first look, the Financial institution of America Custom-made Money Rewards card will get the next potential return (as much as 5.25% money again with Money Rewards versus as much as 3.5% return with the Premium Rewards, or 2.625% with the Journey Rewards), however keep in mind that the Money Rewards has a $2,500 quarterly cap on bonus class earnings.
Whereas somebody who’s solely spending round $800 a month will nonetheless profit extra from the rewards construction of the Money Rewards, bigger budgets will seemingly earn extra with the Premium or Journey Rewards playing cards.
For instance, for those who’re spending $20,000 annually (round $1,667 a month) on journey and/or eating, you’ll find yourself incomes extra with the Premium Rewards bank card. That degree of spending with the Money Rewards will earn as much as $625 for Platinum Honors members, whereas Premium Rewards cardholders can earn as much as $700 as Platinum Honors members. That’s additionally not contemplating the extra assertion credit and perks you get with the Premium Rewards card.
For non-Financial institution of America prospects, the U.S. Financial institution Money+® Visa Signature® Card is one other main competitor. You’ll earn 5% money again in your first $2,000 in mixed eligible purchases every quarter on two classes you select, plus 2% money again on one on a regular basis class, like fuel stations/electrical automobile charging stations, grocery shops or eating places.
The potential bonus classes aren’t fairly as broad as with the Financial institution of America Custom-made Money Rewards card however embody a bigger selection (reminiscent of streaming companies and gymnasiums/health memberships). If you happen to aren’t eligible for Financial institution of America Most well-liked Rewards, this could possibly be a greater choice for you long-term.
Backside line
If you happen to qualify for Most well-liked Rewards by means of Financial institution of America, the Financial institution of America Custom-made Money Rewards card has the potential to supply profitable rewards for smaller budgets. Frequent vacationers and people with bigger budgets will in all probability get extra out of one in every of Financial institution of America’s extra premium playing cards.
Additionally, take into account that Financial institution of America playing cards are greatest suited for individuals who use different Financial institution of America merchandise like their financial savings and funding accounts. Those that financial institution elsewhere can discover a larger cash-back fee with playing cards provided by different issuers.
Further reporting by Ryan Wilcox and Chris Dong.
