The Bank of America Cash Rewards Credit Card is a well-rounded card for everyday purchases. You don’t have to be a Bank of America customer to get this card, but you’ll find more value if you are. Big spenders will want to look to different rewards credit cards that don’t cap the bonus rewards they can earn—but for most people, the Bank of America Cash Rewards Credit Card can be lucrative.
Bank of America Cash Rewards Credit Card Quick Review
Here are the key features of the Bank of America Cash Rewards Credit Card:
Annual Fee: $0
APR: 0% for 12 months, then 15.24% to 25.24%
Sign-Up Bonus: $200
- 3% cash back on gas
- 2% back at grocery stores and wholesale clubs
- 1% back everywhere else
- Cash back bonus of 10% or more when you redeem your rewards to a Bank of America checking or savings account
- Free FICO credit score
- $10 or 3% balance transfer fee, whichever is greater
- $10 or 3% cash advance fee, whichever is greater
- 3% foreign transaction fee
- Up to $38 late payment fee
- Up to $27 returned payment fee
Why Apply for the Bank of America Cash Rewards Credit Card
Here are a few reasons to add the Bank of America Cash Rewards Credit Card to your wallet:
You get rewarded for everyday purchases
The Bank of America Cash Rewards Credit Card offers 3% cash back at gas stations, 2% back at grocery stores and wholesale clubs, and 1% back everywhere else. There are no rotating categories to sign up for, and no limits on how much cash back you can earn. The card does have quarterly caps on bonus categories, but despite the those, you can rack up quite a bit of cash back on your everyday spending.
It has a large, easy-to-achieve sign-up bonus
You’ll receive $200 in bonus cash back when you spend $500 within the first 90 days of opening the account. Compared to many other cash-back credit cards, this sign-up bonus is fairly large, especially considering the relatively low minimum spend to receive it.
Bank of America customers earn bonus cash back
If you redeem your Bank of America Cash Rewards to a Bank of America checking or savings account, you automatically get a 10% cash back bonus. That means if you redeem $100 in cash back, you receive $110. Preferred Rewards members—those who maintain an average balance of $20,000 or more over three months in their Bank of America accounts—will see their cash back bonus grow from 10% to 25%. And customers with average balances in excess of $100,000 will see a bonus of 75%. That’s among the best rates of any credit card on the market, albeit with a big personal wealth caveat.
Bank of America Cash Rewards Credit Card: Drawbacks and Downsides
Before you apply for the Bank of America Cash Rewards Credit Card, you should know about its shortcomings:
Bonus cash back categories are limited
You only earn 3% back on gas and 2% back on groceries and wholesale club purchases for the first $2,500 you spend in these categories each quarter. After that, any additional purchases made in these categories will earn the standard 1% cash back. This could limit how much you’re able to earn in rewards, especially if you spend a lot in the bonus categories every year.
Bank of America Cash Rewards Credit Card Alternatives
If the Bank of America Cash Rewards Credit Card doesn’t appeal to you, one of these may be a better fit:
Citi Double Cash Card
The Citi Double Cash Card gives you 1% cash back on all purchases, and another 1% back when you pay for that purchase. That’s 2% back on every dollar you spend. No other credit card offers a higher flat cash-back rate, so this may be a better choice if you want and easy 2% rewards everywhere. There aren’t bonus categories, unlike with the Bank of America Cash Rewards Credit Card. But some would consider the simplicity a bonus.
The Citi Double Cash Card has an introductory APR of 0% for 18 months, then 15.74% to 25.74% for balance transfers, too. That’s six months more of 0% APR than the Bank of America Cash Rewards Credit Card offers, so it’s better if you need to transfer a balance. In addition, the Citi Double Cash Card’s standard APR is only slightly higher than the Bank of America Cash Rewards Credit Card.
U.S. Bank Cash+ Visa Signature Card
The U.S. Bank Cash+ Visa Signature Card lets you choose two categories you want to earn 5% back in each quarter. You’re limited to the first $2,000 you spend in these categories, but that’s higher than many similar rotating-category cards. Plus, you get unlimited 2% back in another everyday category of your choice, like gas or groceries, and 1% back everywhere else.
This card compares closely to the Bank of America Cash Rewards Credit Card for balance transfers. It offers a 12-month 0% APR, and once that period is over, the remaining balance accrues interest at the standard APR of 15.99% to 24.99%.
Bank of America Cash Rewards Credit Card FAQs
Below are answers to some common questions regarding the Bank of America Cash Rewards Credit Card.
Do Bank of America Cash Rewards expire?
No, your Bank of America Cash Rewards will never expire, as long as your credit account remains active.
How do you redeem Bank of America Cash Rewards?
Sign into your online Bank of America account and navigate to the credit card rewards section. There, you’ll be able to choose your rewards redemption options and transfer cash back to any linked bank accounts. You can also redeem your rewards by phone if you prefer to speak to a live person.
Bottom Line: Should You Apply for the Bank of America Cash Rewards Credit Card?
The Bank of America Cash Rewards Credit Card has great potential as a go-to card for everyday purchases. It should definitely be at the top of your list if you’re already a Bank of America customer. But if you spend a lot on gas and groceries, you may find the $2,500 bonus rewards cap on these categories to be restricting.