The Bank of America® Customized Cash Rewards credit card stands out among many cash back options, but you get the most value when you know how to use it smartly. While many people look for the bank of america cash back card, its official name is the Bank of America® Customized Cash Rewards credit card, and what makes it special is control. You decide how to earn your rewards.
This card’s main benefit is its flexible 3% cash back category, which you pick from six useful options. You also get automatic 2% back at grocery stores and warehouse clubs. However, the real advantage is the Bank of America Preferred Rewards program, which can increase your earnings by up to 75%, turning this no-annual-fee card into a rewards winner. This review will examine every feature to help you decide if it’s right for your wallet.
This card works best for:
- Current Bank of America or Merrill customers.
- People who want control over their bonus rewards category.
- Those who spend heavily in one specific area (like online shopping or gas).
- Anyone wanting a no-annual-fee card with a good introductory APR offer.
Quick Look: Key Features
Here’s a fast overview of the card’s most important features, rates, and fees. This summary gives you the essential information for those who need a quick look at what the bank of america cash back credit cards offer.
| Feature | Details |
|---|---|
| Sign-Up Bonus | $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening. |
| Rewards Rate | 3% cash back in a category of your choice, 2% at grocery stores and wholesale clubs (on the first $2,500 in combined 3% and 2% category purchases each quarter), and 1% on all other purchases. |
| Annual Fee | $0 |
| Intro APR | 0% Intro APR for 18 billing cycles for purchases and for any balance transfers made in the first 60 days. |
| Regular APR | 19.24% – 29.24% Variable APR on purchases and balance transfers. |
| Foreign Transaction Fee | 3% |
How The Rewards Program Works
Understanding how the rewards work is key to getting the most from the Bank of America® Customized Cash Rewards card. Your earnings are split into three different categories, each with its own rules and limits. We’ll explain exactly how you earn cashback bank of america style.
The 3% Choice Category
This is the card’s main feature. You get to pick one category where you will earn 3% cash back. The available categories cover many common spending areas:
- Gas
- Online Shopping
- Dining
- Travel
- Drug Stores
- Home Improvement & Furnishings
An important detail is the quarterly spending limit. You earn 3% (and 2%) on the first $2,500 in combined purchases across these top two levels each quarter. Once you reach that $2,500 limit, any more spending in those categories for the rest of the quarter will earn a flat 1%.
In our experience, changing the category is easy. You can do it once per calendar month through the Bank of America mobile app or your online account. The change happens right away. The key is to remember that if you don’t make a choice, the category will automatically be Gas. We recommend setting a reminder at the end of each month to review your upcoming spending and change your category if needed.
The 2% Automatic Categories
Along with your choice category, the card automatically gives 2% cash back at grocery stores and warehouse clubs. This is a great, automatic benefit for everyday purchases. Top retailers like Costco, Sam’s Club, and BJ’s are included, as are most major supermarket chains.
Remember, this 2% category shares the same $2,500 quarterly spending limit with your 3% choice category. For example, if you spend $1,500 on online shopping (your 3% category) and $1,000 at grocery stores in a quarter, you will have reached your bonus earning limit for that period. All future purchases in those categories will earn 1%.
The 1% Unlimited Category
For every other purchase that doesn’t fall into your selected 3% category or the automatic 2% categories, you will earn unlimited 1% cash back. This includes everything from utility bills and insurance payments to subscriptions and purchases at stores that don’t fit the bonus descriptions. There is no limit on the amount of cash back you can earn at the 1% rate, making it a reliable baseline for all your other spending.
The Smart User’s Strategy
Simply picking a 3% category and leaving it for the year is a wasted opportunity. To truly master the bank of america cash back card, you must use “category switching.” This means actively managing your 3% choice to match your expected spending throughout the year. This smart approach changes the card from a good earner into a great one.
We’ve created a sample “Annual Rewards Calendar” to show this strategy. This is a framework; you should adapt it to your personal spending habits.
Annual Rewards Calendar Example
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Quarter 1 (Jan-Mar): Online Shopping
- Why: This quarter is often filled with after-holiday sales and “new year, new you” purchases. Whether it’s fitness gear, home organization items, or just taking advantage of clearance events, online spending is typically high. Alternatively, if you’re planning an early start on home projects, Home Improvement is a strong choice.
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Quarter 2 (Apr-Jun): Home Improvement/Furnishings
- Why: As spring arrives, so do home and garden projects. This is the perfect time to earn 3% back on supplies from stores like Lowe’s and The Home Depot, as well as on new patio furniture or indoor decor. If you’re planning a spring break road trip, Gas could be your pick.
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Quarter 3 (Jul-Sep): Travel or Gas
- Why: This is peak vacation season. Selecting Travel allows you to earn 3% on flights, hotels, car rentals, and even theme parks. For those taking summer road trips, the Gas category is the obvious winner to offset high prices at the pump.
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Quarter 4 (Oct-Dec): Online Shopping
- Why: This is the best category for the end of the year. From Black Friday and Cyber Monday deals to all of your holiday gift shopping, nearly every major purchase can be made online. Setting this as your 3% category is the single best way to maximize
cashback bank of americaduring the holiday rush.
- Why: This is the best category for the end of the year. From Black Friday and Cyber Monday deals to all of your holiday gift shopping, nearly every major purchase can be made online. Setting this as your 3% category is the single best way to maximize
Smart Tips for Selection
To use this strategy effectively, follow these simple but powerful tips:
- Review Last Month’s Spending: Before the new month begins, take two minutes to look at your credit card statement. Where did you spend the most? Use that information to inform your choice for the upcoming month.
- Plan for Big Purchases: Know you have a major home renovation or a big vacation coming up? Switch your category in advance to capture those large expenses at the 3% rate.
- Set a Calendar Reminder: It’s easy to forget. Set a recurring reminder on your phone or digital calendar for the 28th of each month with a simple note: “Choose BofA 3% Category.”
The Preferred Rewards Advantage
The single most important feature of any bank of america cash back credit cards is the Preferred Rewards program. This is the “secret weapon” that raises the Customized Cash Rewards card from a solid competitor to potentially the best cash back card on the market for a specific group of people.
The program provides a rewards bonus of 25% to 75% on all your credit card earnings. Your eligibility is based on maintaining a three-month combined average daily balance in qualifying Bank of America deposit accounts and/or Merrill investment accounts. The more you have with the bank, the more you earn.
Here’s how the levels break down and boost your effective cash back rates:
| Tier | Qualifying Balance | Rewards Bonus | Effective 3% Rate | Effective 2% Rate | Effective 1% Rate |
|---|---|---|---|---|---|
| Standard | $0 – $19,999 | 0% | 3.00% | 2.00% | 1.00% |
| Gold | $20,000 – $49,999 | 25% | 3.75% | 2.50% | 1.25% |
| Platinum | $50,000 – $99,999 | 50% | 4.50% | 3.00% | 1.50% |
| Platinum Honors | $100,000+ | 75% | 5.25% | 3.50% | 1.75% |
As the table clearly shows, the benefits are significant. A Platinum Honors member doesn’t just earn 3% in their chosen category; they earn an incredible 5.25%. Their grocery and warehouse club spending earns 3.5%, and their base rate on all other purchases becomes 1.75%.
For a Platinum Honors member, this card offers a 5.25% return on online shopping or gas with no annual fee. That is an almost unbeatable rate in the credit card world. The 1.75% base rate even beats many popular 1.5% flat-rate cash back cards. If you have or are planning to build a significant banking or investment relationship with Bank of America, this program makes the cash rewards bank of america card a must-have.
Using Your Cash Rewards
Earning rewards is only half the battle; accessing them should be simple and flexible. Bank of America provides several straightforward ways to use your accumulated cash back. We found the process to be easy, taking just three clicks from the main dashboard in the mobile app to complete a request for a statement credit.
How to Use Your Rewards
You have several choices when it comes to using your rewards, with no expiration date as long as your account remains open and in good standing.
- Statement Credit: Apply your cash back directly to your card balance. This is the most common and direct way to lower your bill.
- Direct Deposit: Transfer your rewards directly into a Bank of America checking or savings account. This is effectively putting real cash in your bank account.
- Credit to Merrill Account: You can deposit your rewards into a qualifying Merrill investment account, including a 529 college savings plan. This is a powerful way to turn your everyday spending into a boost for your long-term financial goals.
- Paper Check: You can request a paper check be mailed to you, though this option may have a minimum amount required.
There is a minimum amount of $25 for most options. You can set up automatic withdrawals once your balance reaches this threshold, which is a convenient feature to ensure you’re always getting your money back without having to think about it.
The Important Details and Fees
Being clear is critical when choosing a credit card. While the Bank of America® Customized Cash Rewards credit card shines in many areas, it’s important to know its associated rates and fees to make a fully informed decision.
- Annual Fee: $0. This is a major advantage, as all the card’s benefits come at no yearly cost.
- Intro Purchase APR: 0% for the first 18 billing cycles. This is an excellent feature if you need to finance a large purchase and pay it off over time without paying interest.
- Regular Purchase APR: After the introductory period, a variable APR of 19.24% – 29.24% will apply. This is why we always recommend paying your balance in full each month.
- Foreign Transaction Fee: 3%. This is a significant drawback. This fee will be added to every purchase you make outside the United States, making it a poor choice for international travel.
- Late Payment Fee: Up to $40. As with any credit card, paying on time is essential to avoid fees and protect your credit score.
The $0 annual fee and the long 0% intro APR period are standout benefits, but the 3% foreign transaction fee is a key weakness to consider if you travel abroad.
Comparing to Other Cards
No card exists alone. To understand the true value of the bank of america cash back card, we need to see how it compares against its main rivals: the Chase Freedom Flex℠ and the Citi Custom Cash℠ Card.
| Feature | Bank of America Customized Cash | Chase Freedom Flex℠ | Citi Custom Cash℠ Card |
|---|---|---|---|
| Rewards Structure | 3% in a choice category, 2% at grocery/wholesale, 1% elsewhere. Capped at $2,500/quarter. | 5% on rotating quarterly categories (activation required), 5% on travel via Chase portal, 3% on dining/drugstores, 1% elsewhere. | 5% on your top eligible spend category each billing cycle (up to $500 spend), then 1%. |
| Annual Fee | $0 | $0 | $0 |
| Unique Feature | Preferred Rewards program boosts rates by 25%-75% for eligible BofA/Merrill clients. | Combines rotating categories with fixed bonus categories for broad earning potential. | Automatically adapts to your spending. No need to choose or activate categories. |
Which Card Wins for Different People?
Each of these bank of america cash back credit cards competitors serves a different type of user. Your personal spending habits will determine the best fit.
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The Bank of America Customized Cash Rewards is for the planner. It’s best for existing Bank of America customers who can use the Preferred Rewards bonus and for anyone who wants direct control over their highest-earning category. If your spending is predictable and focused, this card is a winner.
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The Chase Freedom Flex℠ is for the active user. It appeals to those who enjoy tracking rotating 5% categories and can take advantage of its multiple fixed bonus categories. It requires more effort but can offer broad value across many types of spending.
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The Citi Custom Cash℠ Card is for the simple user. It offers the ultimate simplicity. You get 5% back on your top spending category automatically, without any need to log in, choose, or activate. Its main limitation is the low monthly spending cap ($500) for the 5% rate.
Who Should Get This Card?
Based on our detailed analysis, here’s a clear breakdown of who stands to benefit most from adding this card to their wallet.
- Existing Bank of America customers, especially those with Preferred Rewards status. The rate boost is a game-changer that no competitor can match.
- Budget-conscious people who want to align their highest rewards rate with their biggest spending category each month or quarter.
- People whose spending is consistently high in one of the six choice categories, such as commuters (Gas), frequent online shoppers, or home renovators.
- Those looking for a long 0% introductory APR period to finance a large purchase or transfer a balance.
Who Should Look Elsewhere?
On the other hand, this card is not the right fit for everyone. You might want to consider other options in these situations.
- You travel internationally. The 3% foreign transaction fee will cancel out any rewards you earn and add significant cost to your overseas purchases.
- You prefer complete simplicity. If you don’t want to think about changing categories, a flat-rate 2% cash back card might be a better, lower-effort choice.
- Your spending is highly varied. If your expenses are spread thinly across many different categories, you may struggle to consistently maximize the 3% bonus rate.
- You are a very high spender. The $2,500 quarterly cap on bonus categories might be too limiting if you regularly spend more than that in your chosen category.
The Final Decision
The Bank of America® Customized Cash Rewards credit card is a powerful and flexible option in the no-annual-fee space. Its core strength lies in the combination of user control and an unmatched rewards-boosting system. The ability to choose your 3% category gives you the power to tailor the card to your life, while the Preferred Rewards program offers a clear path to exceptional returns for those invested in the Bank of America family.
Its primary weakness is the 3% foreign transaction fee, which makes it unsuitable for international trips. However, for domestic use, it is a strong tool. While many cards offer cash back, the Bank of America® Customized Cash Rewards credit card offers a pathway to truly elite earning rates for the smart user. For those already within the Bank of America system, it’s not just a good card—it’s arguably an essential one.
