In today’s world of credit cards, finding one card that works with your changing spending can be tough. Most cards stick you with the same bonus categories, causing you to miss out on money when your spending changes. Everyone wants more money back on everyday purchases, and the right card can make a big difference.
The Bank of America Customized Cash Rewards credit card is different. It gives you power and flexibility when you want control over your rewards. The main idea is simple but smart: you pick where you earn the most cash back. This review will be your complete guide to this card. We will look at its best features, including the 3% category you choose, the great sign-up bonus, and the amazing Preferred Rewards bonus. Our goal is to give you all the facts you need to decide if this card is perfect for your wallet and money goals.
Key Features at a Glance
For those who want the main facts right away, here is a quick summary of the card’s most important features. This table gives you a fast look before we go into the details.
| 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 the category of your choice, 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases. |
| 3% Choice Categories | Gas, Online Shopping, Dining, Travel, Drug Stores, or Home Improvement/Furnishings. |
| Annual Fee | $0. |
| Intro APR | 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. |
| Regular APR | 19.24% – 29.24% Variable APR. |
How the Rewards Program Works
Understanding how the rewards program works is important for getting the most money back. The Bank of America cash back program lets you customize it, but it has specific rules you need to know. We’ll explain each part to make sure you understand how to earn and use your rewards.
The 3% Choice Category
The best feature of this card is that you can pick a 3% cash back category. Each month, you can log into your online account or use the Bank of America mobile app to choose one of these six categories:
- Gas
- Online Shopping
- Dining
- Travel
- Drug Stores
- Home Improvement/Furnishings
You need to be active about this. If you don’t pick a category for a month, the card will automatically use the category you chose the month before. The “Online Shopping” category covers many internet stores. “Travel” includes flights, hotels, rental cars, and cruises. The “Home Improvement” category includes hardware stores, garden centers, and furniture stores.
The 2% and 1% Levels
Besides your chosen category, the card gives you steady earnings on daily needs. You will automatically get 2% cash back at grocery stores and wholesale clubs like Costco and Sam’s Club. This is a strong, steady rate for a major household spending area.
An important detail to understand is the quarterly spending limit. The 3% and 2% reward rates apply to the first $2,500 in combined choice category, grocery store, and wholesale club purchases each quarter. After you reach that $2,500 limit, all future purchases in those categories, as well as all other non-bonus spending, will earn a flat 1% cash back. All other purchases outside of these bonus categories automatically earn unlimited 1% cashback Bank of America.
Getting Your Cash Rewards
Bank of America makes getting your cash rewards easy and flexible. Your rewards don’t expire as long as your account stays open and in good standing. Here are your main ways to use rewards:
- Statement Credit: Apply your rewards directly to your card balance.
- Direct Deposit: Put your cash back into a Bank of America checking or savings account.
- Merrill Investment Credit: Credit your rewards to an eligible Merrill investment account, including 529 accounts.
The minimum amount to get rewards is typically $25 for statement credits and deposits, though this can change.
Getting the Most Cash Back
Just having the Bank of America Customized Cash Rewards credit card isn’t enough; using it smartly is what makes it truly valuable. This section goes beyond just describing features to give you expert tips for turning this card into a money-making tool. We will walk through practical strategies based on our experience studying rewards programs.
The Category Switching Strategy
The best way to get the most from your cash rewards Bank of America is to match your 3% category with your expected spending throughout the year. Think of your budget in seasons and plan ahead. This active management can give you big returns.
Consider this example of a yearly plan for a smart cardholder:
- January-March: You set your category to Home Improvement/Furnishings. This is perfect for indoor projects during winter, buying new furniture, or organizing your space.
- April-June: With warmer weather comes road trips. You switch your category to Gas to earn 3% back on every fill-up during spring travel season.
- July-September: Summer vacation is here. You change your category to Travel to get 3% back on your flights, hotel stays, and rental cars, getting the most returns on your biggest vacation expense.
- October-December: The holiday season means gift-giving. Switching your category to Online Shopping makes sure you get a bonus on purchases from Amazon, Target.com, and other online stores.
This level of planning changes the card from a basic tool into an active part of your money strategy.
Avoiding the Quarterly Limit
The $2,500 quarterly limit on combined 3% and 2% category spending is an important detail to manage. To avoid earning only 1% on large purchases, you must know your spending.
Here is a real example: You are planning a $4,000 kitchen appliance upgrade in May and have set your 3% category to Home Improvement. You also spend $500 per month at grocery stores. By the end of May, you will have spent $1,000 on groceries and $4,000 on home improvement. However, only the first $2,500 of that combined $5,000 spend will earn bonus cash back. The remaining $2,500 will earn just 1%. If possible, consider splitting a very large purchase across two quarters. For instance, you could buy the refrigerator in June (Q2) and the oven in July (Q3) to stay under the limit in both quarters and get the most rewards.
Pairing for a Complete System
While the Bank of America Customized Cash Rewards credit card is powerful, no single card is perfect for every purchase. To build a truly optimized cashback system, experts pair it with other cards.
A common and effective strategy is to pair this card with a high-yield flat-rate card, such as one that offers unlimited 2% cash back on all purchases. In this setup, you would use the Bank of America card only for your chosen 3% category and for groceries/wholesale clubs (up to the quarterly limit). For all other spending—from your utility bills to subscription services—you would use the flat 2% card. This makes sure you are always earning at least 2% back, rather than the standard 1% offered by the Customized Cash Rewards card on non-bonus spending.
Unlocking Preferred Rewards
The real power of the Bank of America cash rewards credit card comes when you are a Bank of America Preferred Rewards member. This relationship banking program is the single most appealing feature with the card, changing its earning rates from good to absolutely market-leading. For many users, this is the main reason to choose this card over others.
You can get Preferred Rewards by keeping a three-month average combined balance in qualifying Bank of America deposit accounts and/or Merrill investment accounts. The program has several levels, each offering a big bonus on the base rewards you earn. The impact on your cash back rates is huge.
This table shows how the Preferred Rewards bonus raises your earning potential:
| Preferred Rewards Tier | Required Balance | Rewards Bonus | 3% Category Becomes | 2% Category Becomes | 1% Base Rate Becomes |
|---|---|---|---|---|---|
| Gold | $20,000+ | 25% | 3.75% | 2.5% | 1.25% |
| Platinum | $50,000+ | 50% | 4.5% | 3.0% | 1.5% |
| Platinum Honors | $100,000+ | 75% | 5.25% | 3.5% | 1.75% |
Let’s put these numbers into perspective. As a Platinum Honors member, the 5.25% rate on your chosen category is one of the highest cash back rates available from any no-annual-fee card on the market. It beats most cards that offer 5% in rotating or fixed categories. Also, the 3.5% back on groceries and wholesale clubs is also best-in-class, beating nearly every dedicated grocery rewards card. Even the base earning rate of 1.75% on all other purchases is highly competitive.
This connection makes the Bank of America Customized Cash Rewards credit card an extremely valuable tool for anyone who already banks with Bank of America or has investments with Merrill. If you can qualify for the Platinum or Platinum Honors levels, this card should be at the top of your list.
Other Key Benefits
Beyond the main rewards program, the card comes with other features and protections that add to its overall value. These benefits provide convenience and security for everyday use.
- $0 Liability Guarantee: You are not responsible for fraudulent charges made to your account.
- FICO® Score Access: You can access your FICO® Score for free, updated monthly, through your online banking or mobile app. This is a valuable tool for watching your credit health.
- Digital Wallet Technology: The card works fully with major digital wallets, including Apple Pay, Google Pay, and Samsung Pay, allowing for secure, contactless payments.
- BankAmeriDeals: This program gives you access to extra, targeted cashback offers from specific merchants. You can activate deals within your online account to earn additional rewards on top of your regular cash back.
- Account Alerts: You can set up customizable alerts via email or text for payment due dates, posted payments, and balance limits to help you manage your account effectively.
Understanding the Costs
A balanced review requires a clear look at the potential costs. The Bank of America Customized Cash Rewards credit card is a consumer-friendly card, but it is important to know its rates and fees to use it responsibly.
- Annual Fee: $0. This makes it an easy card to keep long-term without any cost.
- Balance Transfer Fee: 3% of the amount of each transaction for the first 60 days the account is open. After that, the fee is 4%.
- Foreign Transaction Fee: 3% of the U.S. dollar amount of each transaction. This is a big drawback. If you travel internationally often, this card is not the right choice for purchases made abroad.
- Late Payment Fee: Up to $40. As with any credit card, paying your bill on time is important to avoid fees and potential damage to your credit score.
- Regular Purchase APR: 19.24% – 29.24% Variable APR. The introductory 0% APR is a great benefit, but once it expires, the interest rate can be high. We always recommend paying your balance in full each month to avoid interest charges.
Competitor Comparison
To understand where the Customized Cash Rewards card stands, it’s helpful to see it alongside its main competitors. The no-annual-fee cashback market is crowded, but a few cards are direct rivals in their approach to rewards.
| Feature | Bank of America Customized Cash Rewards | Chase Freedom Flex℠ | Citi Custom Cash® Card |
|---|---|---|---|
| Rewards Structure | 3% in a chosen category, 2% at grocery/wholesale, 1% elsewhere. | 5% on rotating quarterly categories (up to $1,500), 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), 1% elsewhere. |
| Flexibility | High. You choose your 3% category from a list of 6 options, and you can change it monthly. | Moderate. Categories are chosen by Chase and rotate quarterly. Less user control. | High (but automated). The card automatically gives 5% to your top spending category. No need to choose. |
| Unique Perk | The Preferred Rewards program, which can boost rates up to 5.25% cash back. | A strong ecosystem of Chase Ultimate Rewards points that can be pooled with premium cards for high-value travel redemptions. | Simplicity. The 5% is automatic, requiring no management from the cardholder. |
| Annual Fee | $0 | $0 | $0 |
| Best For | Bank of America/Merrill clients who can leverage Preferred Rewards and those who want control over a specific bonus category. | People who enjoy tracking rotating categories and want to be part of the powerful Chase Ultimate Rewards ecosystem. | Users who want maximum rewards in one specific category without having to manage it, and whose spending fits neatly into one of the eligible 5% categories. |
In summary, while the Citi Custom Cash offers a higher 5% rate, its monthly spending limit is much lower ($500 vs. BofA’s $2,500 quarterly). The Chase Freedom Flex is more complex, with multiple bonus levels and rotating categories that you don’t control. The Bank of America Customized Cash Rewards card finds a sweet spot, offering control and, for those in the Preferred Rewards program, an unbeatable earning potential that its competitors cannot match on their own.
Is This Card Right for You?
After a deep look into its features, strategies, and competitive positioning, the final question remains: is the Bank of America Customized Cash Rewards credit card the right choice for your wallet? The answer depends entirely on your financial profile and spending habits.
This Card Is an Excellent Choice If…
- You are an existing Bank of America client or have investments with Merrill, allowing you to qualify for the Preferred Rewards program. This is the single biggest reason to get this card.
- You want direct control over your primary bonus category and are willing to manage it monthly or quarterly to align with your spending.
- A significant portion of your budget falls into one of the six choice categories, particularly broad ones like Online Shopping or Dining.
- You are looking for a no-annual-fee card to be a core component of a multi-card rewards strategy.
You Might Want to Consider Other Options If…
- You prefer a simple, “set-it-and-forget-it” rewards card and do not want to track or change categories.
- You travel outside of the United States frequently, as the 3% foreign transaction fee will cancel out any rewards you earn.
- Your main spending categories are not covered by the six choices available for the 3% bonus.
- You cannot take advantage of the Preferred Rewards program. While still a solid card on its own, its true competitive advantage is lost, and other cards might offer better standalone value.
