Guide To Bank Of America Preferred Rewards

While Bank of America rewards credit cards aren’t the most popular on the market today, there’s a workaround that can help you boost your rewards haul by 25 to 75 percent. We’re talking about the Bank of America Preferred Rewards program, which lets bank customers with a certain amount of assets earn more credit card rewards for each dollar they spend.

You will need at least $20,000 in eligible accounts with Bank of America to be invited to the Bank of America Preferred Rewards program, but the added value could be the impetus for using the bank to store your emergency savings. Also, be aware that through the program, Bank of America offers customers the opportunity to earn more interest on deposits, lower rates on loans and bonuses on their Bank of America credit card rewards.

If your money isn’t helping you unlock better bonuses, it may be time to consider Bank of America Preferred Rewards. This guide will look into the program and help you decide whether it makes sense for your lifestyle.

What is Bank of America Preferred Rewards?

Bank of America Preferred Rewards is a bank loyalty and incentive program geared toward customers who have specific accounts with the institution, including various checking and savings account products. Eligible customers who have a three-month combined balance of at least $20,000 across eligible Bank of America and Merrill investment accounts get access to special benefits through the program, including rate discounts on various loan products, waived fees, program discounts and elevated earnings on rewards credit cards from Bank of America.

How do you qualify for the Preferred Rewards program?

Bank of America Preferred Rewards is free to join, and the main requirement is a minimum deposit amount for each tier of the program. Members must also have a checking account with Bank of America to be eligible for membership.

Funds that count toward Preferred Rewards minimum deposit requirements can be kept in any of the following account types:

• Bank of America Advantage Banking, savings, money market savings, CDs and IRAs
• Merrill investment accounts, including IRAs and the Cash Management Account
• Merrill 529 college savings accounts on your banking statement
• Revocable grantor trust accounts

Once you have a Bank of America checking account and your average combined daily balance in eligible accounts over a three-month period is at least $20,000, you will be invited to the program.

What are the Bank of America Preferred Rewards tiers?

Based on your balance across accounts on a rolling three-month average, there are five tiers you can qualify for in the Bank of America Preferred Rewards program. Earning Gold status requires a minimum of $20,000, while higher tiers are unlocked as your balance grows.

Gold tier benefits

Individuals and families with at least $20,000 saved across eligible Bank of America accounts qualify for Gold, the lowest tier. This level offers an entry point into the program and an incentive to save even more over time.

The biggest bonus in this tier comes with qualifying Bank of America credit cards and a reduction in mortgage origination fees. Gold members get an additional 25 percent rewards bonus when spending on eligible cards, including the Bank of America® Customized Cash Rewards credit card, Bank of America® Unlimited Cash Rewards credit card, Bank of America® Travel Rewards credit card and Bank of America® Premium Rewards® credit card.

This means that, with the Bank of America Unlimited Cash Rewards credit card (that offers an unlimited 1.5 percent cash back on all purchases), Bank of America Preferred Rewards Gold members would actually earn 1.87 percent back on purchases.

If you decide to purchase a new home or refinance your current mortgage, your Gold status will also help you save money. Gold members get a $200 reduction on the origination fee of a new purchase or refinance mortgage, which can help you reduce closing costs and save even more on your monthly home payment.

Other benefits from the Gold tier include a 5 percent interest rate boost on a Bank of America Advantage Savings account and a 0.05 percent program fee discount on a Merrill Guided Investing account. Those who hold an auto loan with Bank of America will get a 0.25 percent interest rate discount, while families with a home equity line of credit get a 0.125 percent interest rate discount.

Platinum tier benefits

Those who hold a three-month average of $50,000 or more across Bank of America accounts will qualify for the Platinum tier. Members don’t have to request an upgrade from the bank — once you hit the savings minimum, you will automatically be eligible for an upgrade.

At this tier, members get a 50 percent rewards bonus on eligible Bank of America credit cards and one no-fee transaction at non-Bank of America ATMs per month, for a total of 12 per year. The no-fee transaction means you will not be charged the Bank of America fee for withdrawing money, requesting a balance inquiry or making a balance transfer. The ATM bonus is good only at ATMs in the United States and U.S. territories, meaning you may still be charged fees for services at a non-network terminal outside the country.

The 50 percent boost in rewards can be pretty substantial, especially with Bank of America’s higher tier rewards credit cards. For example, cardholders with the Bank of America Premium Rewards card normally earn 2X points on travel and dining purchases and 1.5X points on other spending. With Platinum tier status, however, they would earn 3X points on travel and dining and 2.25X points on other purchases.

This tier also sees increased bonuses and discounts for other accounts. Those with a Bank of America Advantage Savings account get a 10 percent interest rate boost, as well as additional discounts on Merrill Guided Investing program fees, home equity lines of credit interest rates and auto loan interest rates. Those who are planning on a new home purchase or current home refinance with Bank of America can get a $400 reduction in origination fees.

Platinum Honors tier benefits

The next tier of the Bank of America Preferred Rewards program is Platinum Honors. Customers are placed at this level by having a three-month average balance of $100,000 or more in their qualifying accounts.

With Platinum Honors, members get a 75 percent rewards bonus on their eligible Bank of America credit cards. This means cardholders with the Bank of America Premium Rewards card would earn 3.5X points on travel and dining purchases and 2.62X points on all other spending. 

You also get unlimited no-fee transactions at non-Bank of America ATMs across the U.S. and in U.S. territories. However, you’ll still need to visit an international ATM partner when abroad to take advantage of these transactions.

Balances in a Bank of America Advantage savings account will receive a 20 percent interest rate boost, while home equity lines of credit and auto loans will receive discounted interest rates. Bank of America will also offer new purchase or home refinance mortgages with a $600 reduction in origination fees, while Merrill Guided Investing program fees will be discounted by 0.15 percent.

Diamond tier benefits

The fourth tier in the Bank of America Preferred Rewards program is the Diamond tier. You’re eligible for this level if you have a three-month average balance across qualifying accounts of at least $1 million.

Cardholders in the Diamond tier receive a 75 percent rewards bonus on eligible credit cards and have access to unlimited no-fee transactions at non-Bank of America ATMs both in the U.S. and abroad. Additionally, customers gain a 20 percent interest rate boost on their Bank of America savings account balance.

At the Diamond rewards level, you also receive a 0.625 percent interest rate discount on a home equity line of credit, along with a mortgage origination interest rate reduction of 0.250 percent (if a PayPlan is established). The auto-loan interest rate discount at this tier is 0.50 percent, and Merrill Guided Investing program fees are discounted by 0.15 percent.

Diamond Honors tier benefits

The highest tier in the Bank of America Preferred Rewards program is known as Diamond Honors. To be eligible for Diamond Honors, you need a combined three-month average balance of at least $10 million.

Like the Diamond tier, cardholders in the Diamond Honors tier also receive a 75 percent rewards bonus on eligible credit cards and have access to unlimited no-fee transactions at non-Bank of America ATMs across the U.S. and in U.S. territories. A 20 percent interest rate boost on Bank of America savings account balances is also available to Diamond Honors tier members.

At the Diamond Honors reward level, enjoy a 0.750 percent interest rate discount on a home equity line of credit, as well as a mortgage origination interest rate reduction of 0.375 percent (if a PayPlan is established). The auto-loan interest rate discount at this tier is also 0.50 percent.

How to enroll in Bank of America Preferred Rewards

So, how do you become a Bank of America Preferred Rewards member? Based on your rolling three-month combined average daily balance, the Bank of America Preferred Rewards program allows enrollment on an invite-only basis. That means new customers depositing a minimum of $20,000 across Bank of America accounts will have to wait at least three months to take advantage of the Preferred Rewards program.

Once qualified, account holders will be invited to join the free program through online banking. The system will take a regular count of your three-month average daily balance, so you will be automatically upgraded to the next tier when you qualify. There’s also no need to worry about losing status due to market fluctuation or withdrawals — your benefits are good for one year, giving you plenty of time to stay qualified for the program.

Enrollment requirements

As noted above, this program determines eligibility based on how much you hold over a rolling three-month period. If your average daily balance is at one of the five Bank of America Preferred Rewards tiers, you will be invited to join at that status through online banking.

For example, say your average daily balance in month one is $20,000 in qualifying accounts. In month two, market changes reduced your average daily balance to $15,000. Strategy changes and additional deposits increase your average daily balance by month three to $35,000. Over that three-month period, your average daily balance would qualify for an invitation to join with Gold status.

If by month four your average daily balance is $50,000, you wouldn’t immediately jump to Platinum status because your three-month average would still be below $50,000.

What cards are part of the Preferred Rewards Program?

Several popular Bank of America credit cards are eligible to earn bonus rewards through the Bank of America Preferred Rewards program. Examples include:

• Bank of America® Premium Rewards® credit card
• Bank of America® Customized Cash Rewards credit card
• Bank of America® Unlimited Cash Rewards credit card
• Bank of America® Customized Cash Rewards Credit Card for Students* 
• Bank of America® Travel Rewards credit card

Products that don’t qualify to earn bonus rewards through the program include co-branded credit cards offered through Bank of America, such as the Alaska Airlines Visa Signature® credit card and the Air France KLM World Elite Mastercard®*.

Business credit cards are also ineligible to earn bonus rewards through the program. However, Bank of America does offer a business-oriented rewards program similar to Bank of America Preferred Rewards for consumers that awards bonus points for spending on eligible business credit cards from the issuer.

How to maximize the Bank of America Preferred Rewards program

The process of earning bonus points through the Bank of America Preferred Rewards program should be easy to understand since the bonus rewards you earn correlate directly with how much you keep on deposit with the bank. There are still some ways to maximize the program, including the following:

• Keep opportunity costs in mind. Before you move $20,000 to $100,000 or more in emergency savings to Bank of America in order to boost credit card rewards, you should compare interest rates across several different banks. If you’re giving up a high APY on your savings to earn more cash back or travel points, the tradeoff may not be worth it.
• Use your Bank of America credit card for all spending and bills. Use your eligible Bank of America credit card for as much in spending and bills as you can. The more purchases you can charge to your card, the more you’ll benefit from bonus rewards through the program.
• Focus intently on bonus rewards spending. Make sure you’re utilizing your card’s bonus categories to the hilt since doing so can take your rewards balance to greater heights. If you have the Bank of America® Premium Rewards® credit card and you have Platinum Honors status through the program, for example, you could be earning 3.5 points per dollar spent on travel and dining purchases.
• Take advantage of other rate discounts. Keep an eye on other banking discounts you can qualify for when you use Bank of America for an auto loan, a home equity loan or a mortgage. Before you move forward, however, you should still compare rates with other banks and lenders.

The bottom line

For the simple act of saving money and building wealth, Bank of America account holders can unlock valuable bonuses across categories, leading to more savings and rewards. If your rewards strategy is primarily built around cash back, you will be hard-pressed to find a more beneficial program than Bank of America Preferred Rewards.

Frequently asked questions about the Bank of America Preferred Rewards (FAQs)

• Is Bank of America Preferred Rewards worth it?
  

  Since Bank of America Preferred Rewards is free to join once you have an eligible account and meet minimum deposit requirements, it can definitely be worth it. However, you’ll still want to compare interest rates and benefits across other financial institutions before you keep $20,000 or more on deposit with Bank of America.

• How can a customer move between the different tiers of the Bank of America Preferred Rewards program?
  

  You’ll automatically move between Bank of America Preferred Rewards program tiers if the amount you keep on deposit goes up or down. Just remember that qualifying balances for the program are based on a three-month average.

*The information about the Air France KLM World Elite Mastercard® and Bank of America® Customized Cash Rewards Credit Card for Students has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.