
Aditya Bagaria
Bank of America Cash Rewards credit card review!

Background:
This is the introductory cashback card offered by Bank of America.
Annual Fee: $0
What type of earning do I get?
Bank of America is special in that it offers bonuses depending on how much money you hold within Bank of America and Merrill Lynch accounts.
No tier:
3% cashback in category of choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings;
2% cashback at grocery stores and wholesale clubs;
1% cashback elsewhere.
Gold tier:
3.75% cashback in the category of choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings;
2.5% cashback at grocery stores and wholesale clubs;
1.25% cashback elsewhere.
Platinum tier:
4.5% cashback in the category of choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings;
3% cashback at grocery stores and wholesale clubs;
1.5% cashback elsewhere.
Platinum Honors tier:
5.25% cashback in the category of choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings;
3.5% cashback at grocery stores and wholesale clubs;
1.75% cashback elsewhere.
Important caveat: You will only earn 3% and 2% on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter. This means that the top two earnings categories are limited to $2,500. After $2,500 combined spend in the 3% and 2% categories, you will earn the standard 1%, 1.25%, 1.5%, or 1.75% depending on your status tier with Bank of America.
Benefits:
This card has no benefits worth raving about.
Analysis:
As a no annual fee credit card, Bank of America has really hit the home run wth this offering. The thing that stings is the $2,500 limit.
I would choose gas for the 3% choice category as the Cash Rewards card is a Visa credit card meaning that it can be used at Costco. If you have a membership, Costco’s cheap gas prices combined with the 5.25% discount will make your next fuel-up a lot cheaper. In addition, you most likely won’t reach the $2,500 limit if you choose gas.
The 3.5% cash back at grocery stores and wholesale clubs like Costco make these purchases extremely lucrative and add to your savings. If you are a Bank of America loyalist, this card should be your #1 priority. If you are interested in points & miles, then Bank of America is not the bank for you.