Link: Learn more about the Bank of America Premium Rewards credit card with 60K bonus points
Continue reading: Bank Of America Premium Rewards Card Review: Earn 2.625% Back
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I've used the $100 airline incidental credit for:
* seat upgrades (AMEX airline credit doesn't cover, though they will sometimes comp a 1-time credit)
* United Airlines Travel Bank
And I've seen credible reports of the "cheap airfare" technique working. It's basically $100 cash every year (presuming you travel and ever need something besides a regular economy seat).
Need to know what interest rate BofA is offering on accounts to do a proper analysis. A quick Google search shows that's it's.....0.01%.
So for $100,000 you are giving up almost $3,000 a year (pre-tax) in interest. That's a lot of money just to hit that cash back tier.
This card made sense in a low interest rate environment but unless you're spending a ton of money on it I don't see how it works for most people.
$100K can easily get 4% at say Ally savings, ($4K per year.) BAC pays next to nothing. But back when all interest bearing accounts were next to nothing, this made sense.
It's a tough sell given the current interest rate environment. Was much better before.
1. BoA does not offer the most competitive IRA accounts.
2. $100k would generate $4000-5000 in another bank (pre-tax though)
3. Assuming I pay $300,000-400,000 in taxes (spread of .77 percent ~ $2600). Also, spread on delaying the actual cash outlay by another 30-45 days from the charge (.5%)
4. If I put all other non bonus category spend on it - maybe another $200,000 ~ $1400
5. Best case scenario, I come out slightly ahead given the rewards are not taxes.
If we ever get crazy low interest rate environment again, it would make sense.
Last two commenters miss the point.
Any securities in a Merrill account fulfill the requirements, including SEP-IRA. I just transferred an IRA, including all the securities, I had at Schwab. No trade off involved.
Not limited to BofA, anything in a Merrill account also “counts” including an IRA.
Not limited to BofA, anything in a Merrill account also “counts”, including an IRA.
Basically everyone getting 2.6 has a brokerage account at Merrill. Obviously, sticking more than 100k in a .1 savings account is dumb.
I'm a Preferred Rewards member, and this is my primary credit card I use while working here in the middle east. During the December holidays I used account credits to help off-set my trips to Thailand and Vietnam.
What you don't discuss is the premium version of this card which charges a higher annual fee but does not give enough more in benefits to justify it.
It does qualify but you will also need a BofA checking account too. It does qualify for receiving the bonus.
It is not limited to BofA or to savings accounts. Investment accounts with BofA or Merrill count too.
A word of caution: you must open and MAINTAIN a Bank of America checking account to get the enhanced benefits. As a significant Merrill Lynch investment customer, I had specifically asked the BofA rep what minimum balance I needed to maintain to qualify and was told "zero" so I let them open an account which I left unfunded and unused. Several months later, however, BofA closed the checking account due to "inactivity" so in response I have cancelled the credit card. The BofA app in general is about the most "kludgy" of the banking apps -- difficult to use, short on information, and rather confusing.
And even if one does happen to have cash to park, it would be best to use Merrill Edge's Institutional Money Market funds which have some of the lowest expense ratios and highest yields available to consumers (significantly better than what you would get at Schwab and Fidelity).
Merrill Edge is the best kept secret to overcome many of Bank of America's deficiencies.
I've used the $100 airline incidental credit for:
* seat upgrades (AMEX airline credit doesn't cover, though they will sometimes comp a 1-time credit)
* United Airlines Travel Bank
And I've seen credible reports of the "cheap airfare" technique working. It's basically $100 cash every year (presuming you travel and ever need something besides a regular economy seat).
Need to know what interest rate BofA is offering on accounts to do a proper analysis. A quick Google search shows that's it's.....0.01%.
So for $100,000 you are giving up almost $3,000 a year (pre-tax) in interest. That's a lot of money just to hit that cash back tier.
This card made sense in a low interest rate environment but unless you're spending a ton of money on it I don't see how it works for most people.
I have this card. I also happen to have enough in my IRA with Merrill to qualify for the top tier. The IRA has done a bit better than 0.01% over the years, so no complaints from me.
I have this card. I also happen to have enough in my IRA with Merrill to qualify for the top tier. The IRA has done a bit better than 0.01% over the years, so no complaints from me.
$100K can easily get 4% at say Ally savings, ($4K per year.) BAC pays next to nothing. But back when all interest bearing accounts were next to nothing, this made sense.
It is not limited to BofA or to savings accounts. Investment accounts with BofA or Merrill count too.
It's a tough sell given the current interest rate environment. Was much better before.
1. BoA does not offer the most competitive IRA accounts.
2. $100k would generate $4000-5000 in another bank (pre-tax though)
3. Assuming I pay $300,000-400,000 in taxes (spread of .77 percent ~ $2600). Also, spread on delaying the actual cash outlay by another 30-45 days from the charge (.5%)
4. If I put all other non bonus category spend on it - maybe another $200,000 ~ $1400
5. Best case scenario, I come out slightly ahead given the rewards are not taxes.
If we ever get crazy low interest rate environment again, it would make sense.
Basically everyone getting 2.6 has a brokerage account at Merrill. Obviously, sticking more than 100k in a .1 savings account is dumb.
And even if one does happen to have cash to park, it would be best to use Merrill Edge's Institutional Money Market funds which have some of the lowest expense ratios and highest yields available to consumers (significantly better than what you would get at Schwab and Fidelity).
Merrill Edge is the best kept secret to overcome many of Bank of America's deficiencies.
I buy TFDXX (no minimum requirement when buying from Merrill edge). 3.7% . Same day liquidity if you trade before 2pm.
I'm a Preferred Rewards member, and this is my primary credit card I use while working here in the middle east. During the December holidays I used account credits to help off-set my trips to Thailand and Vietnam.
What you don't discuss is the premium version of this card which charges a higher annual fee but does not give enough more in benefits to justify it.
A word of caution: you must open and MAINTAIN a Bank of America checking account to get the enhanced benefits. As a significant Merrill Lynch investment customer, I had specifically asked the BofA rep what minimum balance I needed to maintain to qualify and was told "zero" so I let them open an account which I left unfunded and unused. Several months later, however, BofA closed the checking account due to "inactivity" so in response I have cancelled the credit card. The BofA app in general is about the most "kludgy" of the banking apps -- difficult to use, short on information, and rather confusing.
When Bank of America changed its Preferred Rewards program on May 27, 2026, rebranding it as BofA Rewards, and restructuring it so that instead of a mere $100,000 in an IRA at Merrill, you now need over $1,000,000 for the same 75% boost (now called ‘Premier’, for the 2.62% cash back), that was the beginning of the end. Like, I still have this card, do burn the $100 credit each January on United Travel Bank, and also do the 2x up to $2,500 each November for that annual, but I’m using it less on everyday spend. The SUB ain’t bad. If BofA starts enabling transfers to, say, Alaska, that’d maybe change things a little. (For a brief moment, US Bank Smartly 4% gave it a run for its money, then they nerf’d that product; currently, Robinhood Gold promises 3% back on everything, but I don’t trust them, even with just $50K, and not into subscriptions.)
They grandfathered in the existing boost for a while, I think it's basically your 2027 renewal date plus three months.
@1990: Well stated.
Ben, instead of restating the BofA credit card details, please identify the available alternatives to this credit card without the million dollar commitment. Alternatives have been discussed online so the information is available. I know this because the best alternative is my most used credit card.
I see some major tips and hacks that were missed with BoA premium elite. So I’d like to add those to folks who are considering.
1. BoA counts most retirement brokerage into overall net worth. IRA transfers is straight forward to hit the 1m net worth
2. The priority pass benefit is legendary. 4 accounts for free. Each account can have UNLIMITED guests. They allow experiences such as restaurants.
3. 20% more value when booking flights with BoA, so your travel category when redeeming for flights is more like 4.5%
4. United travel bank and AA gift cards will trigger airline reimbursements below $100. Those credits do not expire and AA allows you to use up to 6 GC at a time.
5. DoorDash GC like ziffy will work on travel lifestyle credits. Those GC can be redeemed for amazing GC at 1:1
Edit: I meant to say Amazon GC from ziffy on #5.
One more thing is that rumors are BoA will be a transfer partner for Alaska miles. Although we do not know the ratio, it is safe to say that these points will be transferable to AS at some point.
It's worth noting that the $550 AF version of this card comes with Priority Pass WITH access to restaurants. That alone is the selling point for me.
This card is best understood as a perk for their high-value customers. I happen to be in their top tier (IRA), and for me it's a no-brainer. I use it for AirBnB, insurance and other expenses where CSR, AmEx P or AmEx G aren't the best option. I just redeem points for cash.
Comparisons with Chase, Capital One, etc. are somewhat meaningless - this card targets a different crowd. I believe Schwab offers something similar.