Whereas it is great to redeem your points and miles for travel preparations, equivalent to lodging and flights, there will be many different bills concerned in planning a visit, equivalent to automotive leases, practice tickets, fuel and campsite charges. Fortunately, utilizing cash-back rewards together together 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 may enhance 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 belongings with the financial institution, the extra perks you possibly can 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:
Find out how 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 need to have each of the next:
- An energetic, eligible Financial institution of America checking account
- A 3-month mixed common every 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 will qualify for every based mostly in your mixed common every day steadiness:
- Gold: $20,000 or extra in complete belongings
- Platinum: $50,000 or extra in complete belongings
- Platinum Honors: $100,000 or extra in complete belongings
- Diamond: $1,000,000 or extra in complete belongings
- Diamond Honors: $10,000,000 or extra in complete belongings
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Whereas not exorbitant, even the bottom stage requires some fairly excessive figures. However do not throw within the towel immediately. When you have an emergency fund, a vacation account, a financial savings account and a checking account, combining all these balances could qualify you for a Most well-liked Rewards tier. When you add in funding accounts, equivalent to IRAs, it’s possible you’ll even discover that the Platinum or Platinum Honors tiers are inside attain.
Your steadiness does not have to originate with Merrill or Financial institution of America to rely towards every threshold. You possibly can roll present 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 may have to think about different issues like account administration charges and accessible funding choices to determine whether or not doing so is an efficient possibility.
Associated: How to maximize your earning with the Bank of America Premium Rewards card
Find out how to transfer amongst Most well-liked Rewards tiers
You possibly can rise from one rung to the following any month after your common every day steadiness for the three earlier months reaches the edge for the next tier. When you attain a selected standing stage, you will not have to hold all of your money within the Financial institution of America basket.
As a substitute, you may preserve your Most well-liked Rewards tier standing for a full 12 months. When you now not meet the qualification necessities after that 12 months, you might have a three-month grace interval to take action. When you nonetheless do not meet the standards after the three-month grace interval, you may both be moved to a decrease tier or fully 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 payment discount | $400 origination payment discount | $600 origination payment 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% |
| Dwelling 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 12 months | Limitless within the U.S. | Limitless within the U.S. and internationally | Limitless within the U.S. and internationally |
| Merrill Guided Investing payment low cost | 0.05% | 0.10% | 0.15% | 0.15% | 0.15% |
| International forex change price low cost (for cellular and on-line orders solely, consists of free customary transport) | 1% | 1.5% | 2% | 2% | 2% |
| Entry to unique way of life advantages | N/A | N/A | N/A | Sure | Sure |
Now, let’s take a more in-depth take a look at every of those advantages.
Financial savings Curiosity Charge Booster
It’s essential have a Financial institution of America Benefit Financial savings account and be an enrolled Most well-liked Rewards member to take pleasure in this profit. When you have an present financial savings account, it won’t mechanically convert to a Financial institution of America Benefit Financial savings account whenever 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 enhance is 5%. That possible 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 proportion yield on a Financial institution of America Benefit Financial savings account as of January 2025 to present you some perspective:
You possibly can test how this enhance would have an effect on the present annual proportion 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 is predicated 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 beneath.
You possibly can 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 payment discount
Any time you possibly can lower down on charges for purchasing or refinancing a house, it is best to. Most well-liked Rewards members are eligible to obtain a set discount in one among two methods, relying in your membership tier:
- A greenback quantity off of your origination payment (to not exceed its value)
- A proportion off your mortgage APR
The Most well-liked Rewards payment discount is not transferable. And it’s possible you’ll not be capable of mix this payment discount with different reductions.
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Auto mortgage rate of interest low cost
You need to full an auto buy finance or refinancing mortgage via 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 may have to ensure that Financial institution of America presents probably the most aggressive price after the low cost. In any other case, it won’t be price pursuing. Even 1 / 4 of a p.c might save or value you 1000’s of {dollars} over the lifetime of the mortgage.
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Dwelling fairness rate of interest low cost
You may 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 stage.
This profit is non-transferable, however you could possibly mix this perk with different house fairness rate of interest reductions. And even co-borrowers are eligible so long as no less than one applicant is enrolled or eligible to enroll.
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No-fee banking companies
Most well-liked Rewards members additionally take pleasure in a number of banking companies for no payment.
These companies embrace:
- ATM/Debit card rush charges
- ATM worldwide transaction payment
- 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 payment waived per billing cycle
Moreover, Platinum and above incur no charges for incoming worldwide wire transfers and may open a small protected deposit field without spending a dime 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 payment 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 payment low cost
Most well-liked Rewards members take pleasure in a payment low cost when using Merrill Guided Investing companies. You may 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 sometimes costs a payment of 0.45% of belongings below administration, and Merrill Guided Investing with an advisor sometimes costs a payment of 0.85% of belongings below administration.
Whereas these charges might sound small, they add up over time. As such, these costs can turn into a compound drain in your investments as they enhance. So, it might be finest to search for a monetary advisor that costs a set payment as an alternative of a proportion of your belongings.
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International forex change price low cost
All Most well-liked Rewards members will get some type of low cost for overseas forex orders via on-line banking or the cellular banking app.
Relying in your standing tier, you may obtain a reduction between 1% and a pair of%.
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Entry to unique way of life advantages
High-tier Diamond and Diamond Honors members will take pleasure in personalized and distinctive way of life experiences, equivalent to journey, wellness, occasions, foods and drinks or different private companies. You possibly can preview a few of these curated presents here.
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Find out how 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 may need to qualify for no less than Platinum Honors and be eligible for the 75% bonus in your bank card rewards.
In fact, it isn’t an incredible concept to make large funding and banking choices based mostly fully on bank card bonuses. Nevertheless, it might be worthwhile in the event you already plan to spend money on Merrill and have an present banking relationship with Financial institution of America. When you do, listed here are a few of the financial institution’s rewards playing cards to think about 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 superb rewards credit card in its personal proper. Nevertheless it will get much more aggressive whenever you add within the bonuses from the Most well-liked Rewards program.
The cardboard costs a $95 annual payment 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 respectable 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 |
| All the pieces 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 flexibility to get no less than 2.625% on all purchases with this card (for high-tier Most well-liked Rewards members) is unimaginable. 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 can go for the Bank of America Travel Rewards credit card. The cardboard earns 1.5 factors per greenback spent on all purchases. Factors will 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 payment.
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 folk who do not need to hold monitor of a number of bonus classes however who nonetheless need to earn at a robust 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 — the most effective rewards charges any card presents for nonbonus on a regular basis purchases.
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Financial institution of America Personalized 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 selection every calendar month:
- Eating
- Drugstores and pharmacies
- Gasoline and electrical automobile charging stations
- Dwelling enchancment and furnishings
- On-line purchasing (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 observe that you may solely earn 3% and a pair of% on as much as $2,500 in mixed purchases every quarter (then 1%).
So, in the event you’re no less than a Platinum Honors member, you may 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.
Associated: Bank of America Customized Cash Rewards full review
Find out how 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 may 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. Word that you may additionally redeem right into a 529 School Financial savings Plan.
Moreover, the Travel Rewards card earns a barely totally different rewards forex. You possibly can 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 may often get a paltry worth of 0.6 cents per level. You will solely obtain a price of 1 cent per level when offsetting a travel-related transaction in your card.
Associated: How to redeem points using the Bank of America Premium Rewards card
Backside line
The Financial institution of America Most well-liked Rewards program might be not price pursuing until you qualify for no less than Platinum Honors to maximise the 75% bonus on bank card earnings.
That mentioned, this system’s perks imply that in the event you already do enterprise with Financial institution of America or Merrill, it is best to think about consolidating your banking and investing to spice up your rewards and advantages.
It would even be price switching to Financial institution of America if doing so will not value you something additional. In spite of everything, the Most well-liked Rewards program can tip the size 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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