How Do I Redeem My Bank Of America Cash Rewards

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 6 minute read

Having the ability to select and alter your top cashback rewards category can greatly enhance your earning potential.

If you’re shopping around for a new cashback credit card from the top reliable credit card issuers in the credit card industry, then you definitely have a few expectations.

For example, you may want to look for a card that doesn’t charge an annual fee, offers fantastic rewards based on how much you spend, or has a generous bonus offer.

One credit card gives you access to all three of these benefits—and more. Plus, you may make the most of your cashback benefits throughout the year by earning it “your way”.

However, is this the best credit card for earning cashback? To learn more, keep reading our Bank of America Customized Cash Rewards credit card review.

Who should be eligible for the Bank of America Customized Cash Rewards credit card?

Because there is no annual fee and you may earn rewards on daily purchases, the Bank of America Customized Cash Rewards credit card is a fantastic option for people who don’t want to worry about the extra cost.

As a result, this card is best suited for consumers whose annual expenditure may fluctuate.

It’s easy to earn rewards for every dollar spent since you may select your own up to 3% cash back category (eating, drugstores, petrol, home improvement/furnishings, online shopping, or travel).

If your purchasing patterns change, you may still get the most out of your cashback incentives by switching categories up to once every month.

If you want to pay no interest on purchases or balance transfers, this is the card for you. As a result, all purchases made in the first 15 billing cycles of the Bank of America Customized Cash Rewards credit card are eligible for a 0% APR during the first 15 months of account ownership.

On balance transfers done during the first 60 days, you receive a 0% interest rate for 15 billing cycles, after which the rate rises to 13.99-23.99%. (variable).

In order to avoid paying interest, you will have a little more than a year to pay off your debt.

Because of the 3 percent foreign transaction fees, it’s not recommended for frequent travelers who plan on using their Bank of America Customized Cash Rewards credit card frequently.

Fees can range from a few dollars to hundreds of dollars, depending on where you travel and how much you spend. The foreign transaction fee can really add up if you make frequent travel purchases abroad.

The Bank of America Customized Cash Rewards card is available to those with eligible credit scores. The Customized Cash Rewards card will let users rack up various rewards bonuses on all eligible purchases.

Benefits and Advantages of the Bank of America Customized Cash Rewards Credit Card

The Bank of America Customized Cash Rewards credit card has a number of great perks, including:

  • If you spend $1,000 in the first 90 days of account opening, you’ll get a $200 welcome bonus, which may be earned by meeting the card’s spending requirements.
  • You can get money back in the following ways. The first $2,500 in combined chosen category/grocery store/wholesale club purchases each quarter will automatically earn you 2% back at grocery shops and wholesale clubs. It’s up to you to choose the highest-earning category. With this card, you’ll get up to 3% cash-back rewards in the category of your choosing (dining; pharmacy; gasoline; online shopping; home improvement/furnishings; and/or travel).
  • Change your most prized possessions if necessary. Instead of flying cross-country to see loved ones for the holidays, why not do all your purchasing online and then drive back home in December? It’s not an issue at all! Select online shopping in November and gas the following month for your up to 3% category. Your expenditure can be optimized even if it varies.
  • There’s no room for error. Using the 3% and 2% reward categories after you’ve spent the maximum isn’t the end of your earning potential. Even if you spend more than $2,500 in a quarter in one of these areas, you’ll still receive 1% of your total purchases.
  • Increase profits even more. Earn up to 5.25 percent cashback in your top spending area each month by joining the Bank of America Preferred Rewards program. Below, you’ll find instructions on how to achieve this.
  • Reduced introductory APR. For the first 15 billing cycles, new cardholders will pay no interest on purchases or balance transfers made with their card (on debt transfers completed within the first 60 days), and thereafter their APR will range from 13.99 percent to 23.99 percent (variable). You must make a transfer within the first 60 days to be eligible for the program’s benefits.

As you can see, with the Bank of America Customized Cash Rewards credit card has a fairly robust rewards program.

In order to maximize rewards, you can use this credit card for any eligible purchases. You can check your rewards balance at any time.

Disadvantages of the Bank of America Customized Cash Rewards Credit Card

Despite the many benefits of the Bank of America Customized Cash Rewards credit card, there are some downsides, such as:

  • A limit on how much you can spend. The bonus categories on this card have spending restrictions of $2,500 each quarter. Using another card may be a better choice if you’re a heavy spender in particular areas and don’t want to risk losing all of your rewards if you go over the cap.
  • Options for redemption are limited. With this card, there are just a few possibilities for redeeming rewards. You can redeem your cash back in the form of a statement credit, check, or a direct deposit to a qualifying Bank of America or Merrill investment accounts.
  • Fees. There is a 3% foreign transaction fee associated with this credit card. There is also a 3% fee for all balance transfers. Finally there is a between 3% and 5% cash advance fee.

Earnings in the first and second years

Take a look at how the Bank of America Customized Cash Rewards credit card might increase your bonus rewards, such as cashback.

Keep in mind that this is only a guess. What you spend and where you spend it will have an impact on the final credit card rewards value.

The most effective strategies to make money

With this card, you have the freedom to alter your earnings potential based on how and when you spend your money.

I’m not sure about you, but my personal expenditure varies greatly from month to month. A kitchen renovation in March, back-to-school shopping in August, and a vacation from October to December are all possibilities for me this year.

Travel rewards credit cards are excellent when I’m planning a vacation, but not so much when I’m shopping for new kitchen equipment.

It’s always good to have a gas-rewards credit card, but it doesn’t reward me the most for my Amazon purchases.

To put it another way, this is why the Bank of America Customized Cash Rewards credit card is so unique. Cardholders may “earn cashback your way” by selecting a new 3% category as often as they’d like.

Using the same card, you may get the highest cashback benefits for your holiday shopping, spring home improvements, and summer vacation.

And you’ll earn 2 percent on your first $2,500 combined choice category/grocery store/wholesale club purchases every quarter all year, and 1 percent on all other purchases.

The Bank of America Preferred Benefits program gives its members the opportunity to increase their rewards by 25-75%.

You must open a personal checking account with Bank of America in order to participate in this no-cost program.

Additionally, you must maintain a three-month average balance of $20,000 across all of your Bank of America (or Merrill Lynch) accounts to be eligible for this promotion. These accounts are all eligible for the Preferred Rewards program.

Your Bank of America Customized Cash Rewards credit card cashback earnings increase in direct proportion to your tier.

Maximizing the amount of Redemption

It’s fairly easy to get rewards with this card. Additionally, you’ll be able to redeem your cash rewards in a variety of ways, and they’ll never expire.

You have the following choices for redeeming your cashback:

  • Amounts of any value can be redeemed at any time for cash incentives. Statement credits, deposits into a Bank of America checking or savings account, or credit to a qualifying Merrill Lynch account are all options. These statement credits will make it easier to keep your balance low.
  • Minimum $25 redemption required for 529 account contributions to be eligible for a rebate.
  • Set up automatic redemptions into an eligible bank, such as a Bank of America or Merrill account (in increments of $25 or more).
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