Bank of America's credit card rewards and benefits are middle-of-the-road for most cardholders
Bank of America credit cards are not bad, but they are not exceptional either. The rewards rates, annual fees, and perks sit in the middle range compared to what other major banks offer. Whether a Bank of America card makes sense for you depends on what you spend money on and whether you already bank there.
The bank offers several credit cards aimed at different types of spending: the Bank of America Cash Rewards card for everyday purchases, the Bank of America Travel Rewards card for flights and hotels, and the Bank of America Premium Rewards card for people who want more benefits in exchange for an annual fee. Each has trade-offs worth understanding before you open an account.
Key Takeaways
- Bank of America cash-back cards typically return 1% to 3% depending on the card and spending category, which matches or slightly trails competitors like Chase and Citi.
- The bank's travel card offers 1.5x points per dollar with no annual fee, but travel cards from other issuers often include trip insurance and lounge access that Bank of America does not.
- Bank of America's premium card charges an annual fee but includes benefits like travel credits and purchase protection that may or may not offset the cost for your spending.
- If you already have a Bank of America checking account, you may earn bonus rewards points through the bank's tiered relationship program, which is a genuine advantage over standalone cardholders.
How Bank of America's cash-back rates compare
The Bank of America Cash Rewards card returns 1% cash back on all purchases, with no annual fee. That is a solid baseline, but it is not unique. Chase Freedom Flex and Citi Double Cash both offer 1% to 2% depending on the card, and American Express Blue Cash offers up to 3% on groceries and gas.
Bank of America does offer category bonuses on some cards — for example, 2% cash back on gas and groceries on the Cash Rewards card if you meet a spending threshold. But you have to spend $2,500 in the category within a quarter to unlock the higher rate, and it resets each quarter. Other banks offer flat rates without this requirement, which means you earn the higher percentage automatically.
The real advantage for Bank of America customers is the Preferred Rewards program. If you have a Bank of America checking or savings account with a certain balance, you earn a bonus multiplier on your credit card rewards — up to 75% more points. This can push a 1% card to 1.75% cash back. But you only get this if you maintain the account balance, and the threshold varies by tier.
Travel rewards and perks: where Bank of America falls short
The Bank of America Travel Rewards card earns 1.5x points per dollar on all purchases with no annual fee. That sounds reasonable until you compare it to travel cards from other banks. The Chase Sapphire Preferred earns 2x points on travel and dining, and it includes trip cancellation insurance, emergency medical coverage abroad, and access to airport lounges through a partner program.
Bank of America's travel card does not include travel insurance, lounge access, or concierge services. You get the points and that is mostly it. If you travel frequently and value insurance protection or lounge access, you will find more comprehensive benefits elsewhere, even if you pay an annual fee for them.
The bank does offer a premium travel card with an annual fee, but the benefits package is smaller than what competitors include at the same price point. You get a travel credit and purchase protection, but not the full suite of travel insurance that premium cards from other issuers provide.
Annual fees and whether they make sense
Bank of America's no-annual-fee cards are genuinely free to hold. The cash-back card and travel card have no yearly cost, which is a real advantage if you want to open a card and forget about it.
The premium card does charge an annual fee, which the bank does not always make straightforward to justify. The fee is offset by a travel credit, but only if you actually use it. If you do not book travel through the card's portal or do not spend enough to hit the credit, you are paying for a benefit you do not use. Other banks' premium cards include benefits like statement credits for dining or shopping that are easier to use passively.
Sign-up bonuses and introductory offers
Bank of America runs sign-up bonuses on most of its credit cards, but the offers are typically smaller than what you see from Chase, American Express, or Citi. A Bank of America card might offer 200 to 500 bonus points after you spend a certain amount in the first few months. Competing cards often offer 500 to 1,000 bonus points or higher for the same spending threshold.
The bank occasionally runs promotional rates on new cards — for example, 0% APR on purchases for a set period. These are worth watching for if you plan to carry a balance, but they are not unique to Bank of America and are not always better than what other banks offer at the same time.
When a Bank of America card actually makes sense
If you already have a Bank of America checking account with a decent balance, a Bank of America credit card becomes more attractive. The Preferred Rewards bonus multiplier can push your rewards rate above what you would earn with a competitor's card, even if the base rate is lower. A 1% card becomes 1.75% with the highest tier, which is competitive.
Bank of America cards also make sense if you want simplicity and do not need specialized benefits. If you spend evenly across categories and do not travel frequently, a no-annual-fee cash-back card from Bank of America works fine. You will not earn the absolute most rewards, but you will not pay anything for the privilege either.
The bank's customer service and fraud protection are solid, and if you already manage your checking account through their app, managing a credit card in the same place is convenient. That convenience has value, even if the rewards are not the highest in the market.
How to decide if Bank of America is right for you
Start by listing what you spend money on most: groceries, gas, dining, travel, or general purchases. Then look at what rate Bank of America offers for those categories and compare it to Chase, American Express, Citi, and Capital One. Use a rewards calculator if the bank provides one — Bank of America does on its website.
If you have a Bank of America checking account, factor in the Preferred Rewards multiplier. That often tips the scale in Bank of America's favor. If you do not bank there, you are comparing Bank of America's base rates against competitors' base rates, and you will likely find better rewards elsewhere unless you value the convenience of having everything in one place.
Do not open a card just because it is from your bank. Open it because the rewards structure matches your spending and the benefits (or lack of fees) make sense for your situation.
Frequently Asked Questions
Does Bank of America offer cash back on groceries and gas like other banks?
Yes, the Cash Rewards card offers 2% cash back on gas and groceries, but only if you spend at least $2,500 in those categories within a quarter. After that, the rate drops back to 1%. Other banks offer flat rates without this spending requirement, so you earn the higher percentage automatically every month.
What is the Preferred Rewards program and how much does it actually help?
Preferred Rewards is a bonus multiplier for Bank of America credit cardholders who also have a checking or savings account with the bank. The multiplier ranges from 10% to 75% extra rewards depending on your account balance. It can make a 1% card worth 1.75%, which is competitive, but you have to maintain the balance to keep the benefit.
Are Bank of America travel cards worth it compared to Chase or American Express?
Bank of America's no-annual-fee travel card earns 1.5x points but includes no travel insurance or lounge access. Chase and American Express travel cards often include these benefits even at the same or lower annual fee. If travel insurance matters to you, you will find better value elsewhere.
Can I earn a sign-up bonus on a Bank of America credit card?
Yes, Bank of America offers sign-up bonuses on most cards, but they are typically smaller than competing offers. A Bank of America bonus might be 200 to 500 points, while Chase or American Express might offer 500 to 1,000 for similar spending. Check the bank's website for current offers.
Should I open a Bank of America credit card if I do not bank there?
Only if the rewards rate and benefits match your spending better than other options. Without a Bank of America checking account, you do not get the Preferred Rewards multiplier, so you are comparing base rates. In most cases, you will find better rewards or benefits from Chase, American Express, or Citi.