Whereas it is fantastic to redeem your points and miles for travel preparations, comparable to lodging and flights, there could be many different bills concerned in planning a visit, comparable to automotive leases, practice tickets, fuel and campsite charges. Fortunately, utilizing cash-back rewards together along with your factors and miles can prevent much more cash in your subsequent trip.
With that in thoughts, let’s look at the often-overlooked Bank of America Preferred Rewards® program. On prime of the easy banking advantages members can count on, consolidating your funds with Financial institution of America also can increase your money again earnings with a few of the best Bank of America credit cards.
That is as a result of Financial institution of America designed its Most well-liked Rewards program to incentivize customers to maneuver their checking, financial savings, funding and retirement accounts to Financial institution of America and Merrill. The upper your steadiness of complete property with the financial institution, the extra perks you may unlock, together with with its bank cards. Relying in your holdings and the kind of rewards you are seeking to accumulate, it is perhaps time to cease ignoring Financial institution of America Most well-liked Rewards.
Associated: 5 reasons to get the Bank of America Premium Rewards credit card
Financial institution of America Most well-liked Rewards Program overview
To start out, this is a normal overview of this system:
Methods to qualify for Financial institution of America’s Most well-liked Rewards Program
To qualify for the Financial institution of America Most well-liked Rewards program, you should have each of the next:
- An energetic, eligible Financial institution of America checking account
- A 3-month mixed common each day steadiness of $20,000 or extra in qualifying Financial institution of America deposit accounts and/or Merrill funding accounts
There are 5 Most well-liked Rewards tiers. You may qualify for every primarily based in your mixed common each day steadiness:
- Gold: $20,000 or extra in complete property
- Platinum: $50,000 or extra in complete property
- Platinum Honors: $100,000 or extra in complete property
- Diamond: $1,000,000 or extra in complete property
- Diamond Honors: $10,000,000 or extra in complete property
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Whereas not exorbitant, even the bottom degree requires some fairly excessive figures. However do not throw within the towel right away. When you’ve got an emergency fund, a vacation account, a financial savings account and a checking account, combining all these balances might qualify you for a Most well-liked Rewards tier. When you add in funding accounts, comparable to IRAs, you might even discover that the Platinum or Platinum Honors tiers are inside attain.
Your steadiness does not must originate with Merrill or Financial institution of America to rely towards every threshold. You’ll be able to roll current IRAs and funding accounts over to Merrill or Financial institution of America and instantly use these balances to start establishing a three-month common to spice up your tier. In fact, you will have to contemplate different issues like account administration charges and obtainable funding choices to determine whether or not doing so is an effective possibility.
Associated: How to maximize your earning with the Bank of America Premium Rewards card
Methods to transfer amongst Most well-liked Rewards tiers
You’ll be able to rise from one rung to the subsequent any month after your common each day steadiness for the three earlier months reaches the edge for the next tier. When you attain a particular standing degree, you will not must preserve all of your money within the Financial institution of America basket.
As a substitute, you will preserve your Most well-liked Rewards tier standing for a full yr. If you happen to not meet the qualification necessities after that yr, you’ve a three-month grace interval to take action. If you happen to nonetheless do not meet the factors after the three-month grace interval, you will both be moved to a decrease tier or utterly lose your Most well-liked Rewards advantages.
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Advantages of Financial institution of America’s Most well-liked Rewards Program
Here is a chart of the 5 Most well-liked Rewards tiers, together with the related advantages of every:
| Profit | Gold | Platinum | Platinum Honors | Diamond | Diamond Honors |
|---|---|---|---|---|---|
| Bank card rewards bonus | 25% | 50% | 75% | 75% | 75% |
| Financial savings rate of interest booster | 5% | 10% | 20% | 20% | 20% |
| Mortgage perks | $200 origination charge discount | $400 origination charge discount | $600 origination charge discount | 0.250% rate of interest discount (when PayPlan is established) | 0.375% rate of interest discount (when PayPlan is established) |
| Auto mortgage rate of interest low cost | 0.25% | 0.35% | 0.50% | 0.50% | 0.50% |
| House fairness rate of interest low cost | 0.125% | 0.250% | 0.375% | 0.625% | 0.750% |
| No-fee banking companies | Included | Included | Included | Included | Included |
| Free non-Financial institution of America ATM transactions | N/A | 12 per yr | Limitless within the U.S. | Limitless within the U.S. and internationally | Limitless within the U.S. and internationally |
| Merrill Guided Investing charge low cost | 0.05% | 0.10% | 0.15% | 0.15% | 0.15% |
| Overseas forex trade price low cost (for cellular and on-line orders solely, consists of free normal transport) | 1% | 1.5% | 2% | 2% | 2% |
| Entry to unique life-style advantages | N/A | N/A | N/A | Sure | Sure |
Now, let’s take a more in-depth have a look at every of those advantages.
Financial savings Curiosity Price Booster
It is advisable to have a Financial institution of America Benefit Financial savings account and be an enrolled Most well-liked Rewards member to get pleasure from this profit. When you’ve got an current financial savings account, it won’t mechanically convert to a Financial institution of America Benefit Financial savings account once you enroll in Most well-liked Rewards. Remember to request the conversion when becoming a member of Most well-liked Rewards.
At Gold, the rate of interest increase is 5%. That seemingly sounds higher than it’s. In case your rate of interest is 1.00%, a 5% price booster would enhance it to 1.05%.
Here is the annual share yield on a Financial institution of America Benefit Financial savings account as of January 2025 to present you some perspective:
You’ll be able to test how this increase would have an effect on the present annual share yield on a Financial institution of America Benefit Financial savings account in your area here.
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Bank card rewards bonus
Most well-liked Rewards members earn a 25%, 50% or 75% rewards bonus on choose Bank of America cards. For bank cards that earn factors or money rewards, you’ll obtain a rewards bonus on each buy.
Your incomes price relies in your Most well-liked Rewards tier when the acquisition is posted to your account. We’ll get into how this performs out with particular playing cards under.
You’ll be able to earn the Most well-liked Rewards bonus on most Financial institution of America consumer-branded bank cards, together with the Bank of America® Premium Rewards® credit card, the Bank of America® Travel Rewards credit card, the Bank of America® Unlimited Cash Rewards credit card and the Bank of America® Customized Cash Rewards credit card, amongst others.
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Mortgage origination charge discount
Any time you may lower down on charges for purchasing or refinancing a house, you must. Most well-liked Rewards members are eligible to obtain a hard and fast discount in one in all two methods, relying in your membership tier:
- A greenback quantity off of your origination charge (to not exceed its worth)
- A share off your mortgage APR
The Most well-liked Rewards charge discount is not transferable. And you might not be capable to mix this charge discount with different reductions.
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Auto mortgage rate of interest low cost
It’s essential to full an auto buy finance or refinancing mortgage by Financial institution of America to qualify for a price low cost. This profit just isn’t transferable, so solely the Most well-liked Rewards member can reap the benefits of this perk.
In fact, you will must ensure that Financial institution of America presents essentially the most aggressive price after the low cost. In any other case, it may not be value pursuing. Even 1 / 4 of a p.c might save or value you hundreds of {dollars} over the lifetime of the mortgage.
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House fairness rate of interest low cost
You will get a house fairness line of credit score rate of interest low cost of as much as 0.75%, relying in your Most well-liked Rewards standing degree.
This profit is non-transferable, however you could possibly mix this perk with different residence fairness rate of interest reductions. And even co-borrowers are eligible so long as not less than one applicant is enrolled or eligible to enroll.
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No-fee banking companies
Most well-liked Rewards members additionally get pleasure from a number of banking companies for no charge.
These companies embrace:
- ATM/Debit card rush charges
- ATM worldwide transaction charge
- Month-to-month upkeep charges on as much as 4 eligible checking and 4 financial savings accounts from Financial institution of America
- Non-Financial institution of America ATM charges for withdrawals, transfers or steadiness inquiries
- One overdraft safety switch charge waived per billing cycle
Moreover, Platinum and above incur no charges for incoming worldwide wire transfers and might open a small protected deposit field without cost at a Financial institution of America department.
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Free non-Financial institution of America ATM transactions
Within the U.S. and U.S. territories, Platinum and Platinum Honors members:
- Will not be charged non-Financial institution of America ATM charges
- Will obtain a refund of the ATM operator or community charge for withdrawals, steadiness inquiries and steadiness transfers
Platinum members obtain one free transaction per assertion cycle (as much as 12 yearly), and Platinum Honors members don’t have any cap. In the meantime, Diamond and Diamond Honors members have limitless no-fee transactions each within the U.S. and internationally.
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Merrill Guided Investing charge low cost
Most well-liked Rewards members get pleasure from a charge low cost when using Merrill Guided Investing companies. You will get began with as little as $1,000 for Merrill Guided Investing or $20,000 for Merrill Guided Investing with an adviser.
Merrill Guided Investing usually prices a charge of 0.45% of property underneath administration, and Merrill Guided Investing with an advisor usually prices a charge of 0.85% of property underneath administration.
Whereas these charges might sound small, they add up over time. As such, these prices can develop into a compound drain in your investments as they enhance. So, it might be finest to search for a monetary advisor that prices a hard and fast charge as a substitute of a share of your property.
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Overseas forex trade price low cost
All Most well-liked Rewards members will get some type of low cost for overseas forex orders by on-line banking or the cellular banking app.
Relying in your standing tier, you will obtain a reduction between 1% and a pair of%.
Associated: Everything you need to know about foreign transaction fees
Entry to unique life-style advantages
Prime-tier Diamond and Diamond Honors members will get pleasure from custom-made and distinctive life-style experiences, comparable to journey, wellness, occasions, food and drinks or different private companies. You’ll be able to preview a few of these curated presents here.
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Methods to maximize money reward earnings with Financial institution of America bank cards and Most well-liked Rewards
To maximise the Financial institution of America Most well-liked Rewards program, you will need to qualify for not less than Platinum Honors and be eligible for the 75% bonus in your bank card rewards.
In fact, it isn’t an important concept to make huge funding and banking choices primarily based fully on bank card bonuses. Nevertheless, it might be worthwhile in case you already plan to put money into Merrill and have an current banking relationship with Financial institution of America. If you happen to do, listed here are a few of the financial institution’s rewards playing cards to contemplate and how one can maximize your cash-back earnings.
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Financial institution of America Premium Rewards bank card
The Bank of America Premium Rewards credit card is a wonderful rewards credit card in its personal proper. However it will get much more aggressive once you add within the bonuses from the Most well-liked Rewards program.
The cardboard prices a $95 annual charge and presents a modest choice of advantages. For instance, cardholders get an up-to-$100 annual airline incidental fee statement credit, a Global Entry or TSA PreCheck application fee credit each 4 years (as much as $100) and a few first rate travel protections.
Nevertheless, this card shines with its incomes charges on on a regular basis spending in addition to journey and eating purchases. Here is how the incomes charges stack up when you think about the Most well-liked Rewards bank card rewards bonus:
| Spending classes | Common cardholder | Most well-liked Rewards Gold (25% bonus) | Most well-liked Rewards Platinum (50% bonus) | Most well-liked Rewards Platinum Honors, Diamond and Diamond Honors (75% bonus) |
|---|---|---|---|---|
| Journey and eating | 2 factors per greenback spent | 2.5 factors per greenback spent | 3 factors per greenback spent | 3.5 factors per greenback spent |
| The whole lot else | 1.5 factors per greenback spent | 1.875 factors per greenback spent | 2.25 factors per greenback spent | 2.625 factors per greenback spent |
The power to get not less than 2.625% on all purchases with this card (for high-tier Most well-liked Rewards members) is unbelievable. This return makes the Bank of America Premium Rewards credit card one of many best credit cards for everyday spending.
Associated: Bank of America Premium Rewards credit card full review
Financial institution of America Journey Rewards bank card
If you wish to keep away from paying credit card annual fees, you possibly can go for the Bank of America Travel Rewards credit card. The cardboard earns 1.5 factors per greenback spent on all purchases. Factors could be redeemed to cowl journey bills at a price of 1 cent per level.
By incomes 1.5 factors per greenback spent on every little thing plus a 75% Most well-liked Rewards bonus as a Platinum Honors (or increased) Most well-liked Rewards member, you successfully earn 2.625% money rewards towards journey purchases made with the cardboard. That is a incredible money reward price to earn on all spending — particularly for a card with no annual charge.
Associated: Bank of America Travel Rewards card full review
Financial institution of America Limitless Money Rewards bank card
The Bank of America Unlimited Cash Rewards credit card is nice for people who do not need to preserve monitor of a number of bonus classes however who nonetheless need to earn at a powerful mounted price on all their purchases. This no-annual-fee credit card earns limitless 1.5% money rewards on all purchases with no restrict.
Platinum Honors and better members would get again 2.625% on all of your purchases — top-of-the-line rewards charges any card presents for nonbonus on a regular basis purchases.
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Financial institution of America Custom-made Money Rewards bank card
One other no-annual-fee card is the Bank of America Customized Cash Rewards credit card. It earns 3% in one of many following classes of your alternative every calendar month:
- Eating
- Drugstores and pharmacies
- Fuel and electrical automobile charging stations
- House enchancment and furnishings
- On-line procuring (together with cable, streaming, web and telephone companies)
- Journey
It additionally earns 2% again at grocery shops and wholesale golf equipment and 1% again on every little thing else. Simply word you can solely earn 3% and a pair of% on as much as $2,500 in mixed purchases every quarter (then 1%).
So, in case you’re not less than a Platinum Honors member, you will earn as much as a whopping 5.25% again in your 3% class. You’d additionally earn as much as 3.5% again at grocery stores and wholesale golf equipment and 1.75% again on all different purchases. That is fairly phenomenal for a no-annual-fee money rewards card.
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Methods to convert your Financial institution of America factors to money
A number of Financial institution of America bank cards earn straight-up money. However some earn “factors,” which you’ll be able to commerce for money.
To redeem your Financial institution of America factors with a card such because the Premium Rewards card, you will discover a “money” possibility inside your on-line account. This lets you request an announcement credit score or a money deposit into your Financial institution of America checking or financial savings account (or eligible Merrill Edge and Merrill Lynch accounts) at a price of 1 cent per level. Observe you can additionally redeem right into a 529 Faculty Financial savings Plan.
Moreover, the Travel Rewards card earns a barely totally different rewards forex. You’ll be able to redeem them as a direct deposit into your Financial institution of America checking or financial savings account or as a credit score into an eligible Merrill Money Administration Account — however you will normally get a paltry worth of 0.6 cents per level. You may solely obtain a price of 1 cent per level when offsetting a travel-related transaction in your card.
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Backside line
The Financial institution of America Most well-liked Rewards program might be not value pursuing until you qualify for not less than Platinum Honors to maximise the 75% bonus on bank card earnings.
That mentioned, this system’s perks imply that in case you already do enterprise with Financial institution of America or Merrill, you must think about consolidating your banking and investing to spice up your rewards and advantages.
It would even be value switching to Financial institution of America if doing so will not value you something further. In spite of everything, the Most well-liked Rewards program can tip the dimensions on a few of Financial institution of America’s prime card choices and reward you with vital reductions on different banking companies like mortgage and auto loans.
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