There have been quite a few commercials for Bank of America cash back credit cards lately, so I thought I’d do a quick review.
There is a 3% balance transfer fee if you choose to transfer a balance, which is pretty much the industry standard.
[See the Chase Slate No Fee Balance Transfer if you want to transfer a balance and avoid the fee.]
1%, 2%, and 3% Cash Back Reward Categories Year Round
But obviously the biggest draw tied to this credit card is the cash back rewards program, as the name implies.
For the first $1,500 in grocery store and gas spending each quarter, you will earn 2% and 3% cash back, respectively, combined. This limit is certainly a drawback and one to look at closely to determine how it will reduce your cash back, if at all.
On all other purchases, you will earn 1% cash back, which is their simple, no-nonsense approach to cash rewards.
There is no limit to the amount of 1% cash rewards you can earn, and you can redeem cash back when you’ve earned as little as $25.
The cash back rewards can be credited to a checking or savings account, or mailed to you in the form of a check. And cash back rewards do not expire.
Another plus is that there are no rotating cash back categories to worry about, unlike the Chase Freedom credit card, and you don’t need to sign-up or register your card for the higher cash back tiers.
Get a $100 Opening Bonus With BankAmericard Cash Rewards
On top of the everyday cash back, you can also earn a $100 cash back bonus if you make just $500 in purchases during the first 90 days from the date the account is opened.
Additionally, if you redeem your cash back rewards directly into a Bank of America checking or savings account, you’ll get a 10% bonus.
In other words, a $25 cash back reward would equate to $27.50 when deposited in a BofA account. So why wouldn’t you opt for this method if you have a checking or savings account with them?
If you spend $1000 a month on the card, or $12,000 annually, you’ll earn $120 cash back, plus potentially a lot more if you frequently use the credit card at gas stations and supermarkets, and deposit it in a BofA account.
Factor in the the $100 upfront bonus and you could be looking at well over $300 in cash back in the first year. Not a bad deal as far as cash back credit cards go, especially seeing that there is no annual fee.
But I still think the Blue Cash from American Express is the best cash back credit card for those who spend a bit more monthly, as it offers 1% cash back on all purchases, 3% back on groceries (up to $6,000 annually) 2% cash back on gas, and 2% at select major department stores. There’s also a $100 welcome bonus.
So be sure to compare these credit cards carefully to determine which is best, based on your unique situation.