Bank of America has released a new credit card called the Bank Of America Premium Rewards Credit Card. This is a review of its signup bonus, benefits and whether it is worth signing up for the card and keeping it long term.
Bank Of America Premium Rewards Credit Card
The credit card went live on 9/18/2017 although it was announced earlier. It comes with a nice signup bonus, some travel benefits and a $95 annual fee which is not waived the first year.
You will qualify for 50,000 bonus points if you use your new credit card account to make any combination of Purchase transactions totaling at least $3000 (exclusive of any fees, returns and adjustments) that post to your account within 90 days of the account open date. Limit one (1) bonus points offer per new account. Allow 8-12 weeks from qualifying for the bonus points to post to your rewards balance. The value of this reward may constitute taxable income to you. You may be issued an Internal Revenue Service Form 1099 (or other appropriate form) that reflects the value of such reward.
The points you earn from the signup bonus are worth 1¢ each. You can redeem for cash back as a statement credit, or as a deposit into your eligible Bank of America or Merrill Lynch accounts including checking, savings, and 529, or to purchase travel (air, car, and hotel) through the Bank of America Travel Center or redeem for gift cards.
Earning Points Through Spending
The card earn at the following rates:
- 2 points for every $1 spent on travel and dining purchases
- 1.5 points for every $1 spent on all other purchases.
No limit to the points you can earn and your points don’t expire.
As a Bank of America customer, you also earn a 10% customer bonus every time you redeem your cash back into a Bank of America checking or savings account. The bonus becomes better if you’re a Preferred Rewards member, which means that you have to have larger deposits at Bank of America. The highest tier of their rewards program, Platinum Honors, is available to those who have more than $100K 3-month average balance in total deposits. If you qualify then you receive a 75% rewards bonus. The Gold tier (20K+) offers 25% rewards bonus and the Platinum tier (50K+) offers 50% rewards bonus. That means you could earn up to 3.5 points per $1 on travel and dining purchases and up to 2.62 points per $1 on all other purchases.
- Get up to a $100 Airline Incidental Statement Credit annually for qualifying purchases such as seat upgrades, baggage fees, in-flight services, and airline lounge fees – automatically applied to your card statement. You can get this twice while only paying one annual fee and possibly even three times if you time it right and apply in December.
- Get up to $100 Airport Security Statement Credit towards TSA Pre✓ ® or Global Entry Application fee, every four years. This is a benefit that lots of premium cards have nowadays.
- No foreign transaction fees
- Travel Insurance protections to assist with trip delays, cancellations and interruptions, baggage delay inconvenience, lost luggage and emergency evacuation and transportation
- Access to the Visa Signature Luxury Hotel Collection which allows you to enjoy a premium set of benefits when you use your Premium Rewards card to book through the Visa Signature Luxury Hotel Collection
- Access to the Visa Signature Concierge service who can help with travel planning, restaurant recommendations and event reservations
The card isn’t very exciting and definitely not a card that can be considered “premium” by recent standards. The bonus is good at $500 with a spending requirement of $3,000. The card comes with a $95 annual fee but that is offset by the $100 Airline Incidental Statement Credit that you can receive twice while paying only one annual fee.
The only way that the card could have some real value in the long terms is if you have Preferred Rewards Platinum Honors status with Bank of America. That will give you a 75% bonus on points, making the earning rates 3.5x on travel and dining and 2.625x on all other purchases. Those are some of the best earning rates around, but Preferred Rewards Platinum Honors status though requires 100K+ at Bank of America.
I would go for this card for the signup bonus and travel credit, but it won’t be worth keeping long terms for most people who don’t have a banking relationship with Bank of America.
- Apply Here (direct link)
- 50,000 bonus points – a $500 value – after you make at least $3,000 in purchases in the first 90 days of account opening
- Earn 2 points for every $1 spent on travel and dining purchases
- Earn 1.5 points for every $1 spent on all other purchases
- $100 Airline Incidental Statement Credit annually
- $100 Airport Security Statement Credit towards TSA Pre✓ ® or Global Entry Application fee, every four years
- No foreign transaction fees
- $95 Annual Fee (not waived first year)