The Financial institution of America®️ Premium Rewards®️ bank card has the potential to be one of many highest-earning cash-back rewards playing cards available on the market, but it surely carries qualification necessities and, in fact, an annual payment. Let’s assessment the advantages of the cardboard that will help you resolve whether or not the $95 annual payment is value paying for card membership.
Financial institution of America Premium Rewards Card incomes construction
The quantity of monetary holdings you will have inside Financial institution of America and Merrill will decide how a lot money again the BofA Premium Rewards card will earn. The cardboard works at the side of Financial institution of America Most well-liked Rewards Program, so be sure you perceive the infrastructure and tiers of that rewards system. Based mostly in your tier throughout the Most well-liked Rewards Program (which you want to enroll in individually), the Premium Rewards Card will earn the next factors:
| Spend Classes | Common Cardholder | Tier 1 – Gold ($20,000 – $50,000) | Tier 2 – Platinum ($50,000 – $100,000) | Tier 3 – Platinum Honors ($100,000 – 1,000,000) | Tier 3 – Diamond Honors ($1,000,000+) |
|---|---|---|---|---|---|
| Journey/Eating earnings | 2 factors per greenback | 2.5 factors per greenback | 3 factors per greenback | 3.5 factors per greenback | 3.5 factors per greenback |
| Different buy earnings | 1.5 factors per greenback | 1.875 factors per greenback | 2.25 factors per greenback | 2.625 factors per greenback | 2.625 factors per greenback |
Every level is value 1 cent towards money again into your Financial institution of America deposit account or Merrill Lynch or 529 faculty financial savings account. You possibly can redeem factors for overlaying journey purchases or present playing cards, however I like to recommend you simply keep on with money again. With the essential rewards construction of the cardboard lined, let’s take a look at all the cardboard advantages and resolve which of them may make the annual payment worthwhile, and which of them may make paying $95 laborious to justify.
Which advantages are definitely worth the $95 annual payment?
Signal-up bonus
With this card, you earn 60,000 on-line bonus factors after spending $4,000 within the first 90 days of account opening. That is value $600 deposited into your checking, financial savings or funding account. It is a fairly straightforward choice to pay $95 and get $600, assuming you will have a simple plan to fulfill the minimal spend requirement. This bonus, in fact, shouldn’t be repeated for subsequent years of card membership, once you’ll nonetheless need to pay $95.
Airline incidental payment
You are additionally eligible to obtain an annual as much as $100 airline credit score to cowl purchases resembling seat upgrades, baggage charges, inflight companies and lounge charges. Airfare shouldn’t be included in what qualifies for reimbursement, although buying a seat improve may qualify, relying on the airline.
You obtain the credit score yearly, and in case you’re ready to make use of the complete quantity, you are primarily getting paid $5 a yr to be a cardholder. Take away some other advantages listed right here, and also you’re already popping out forward in case you can maximize the credit score.
Rewards for Platinum and Platinum Honors Most well-liked Rewards Members
When you’ve got a mean day by day steadiness for 3 months of a minimum of $50,000 in belongings between your Financial institution of America accounts and Merrill accounts, you qualify for the Platinum tier in Most well-liked Rewards — vital for pushing your baseline rewards earnings over the two% cash-back stage.
A number of playing cards, just like the Citi Double Money® Card (1% again once you purchase plus 1% once you pay; see charges and costs) and the Constancy Rewards Visa card, can earn anybody 2% money again on all purchases, so being a minimum of Platinum pushes the Premium Rewards Card previous many of the different competitors.
The knowledge for the Constancy Rewards Visa Card has been collected independently by The Factors Man. The cardboard particulars on this web page haven’t been reviewed or supplied by the cardboard issuer.
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As soon as you have attained Platinum Honors standing, earned with a mean day by day steadiness over $100,000 over the course of three months, your baseline money again is 3.5% on journey and eating and a pair of.625% on all different purchases. That is vital in comparison with different competitor playing cards, most of which do not provide the opposite advantages listed on this part. Whereas incomes transferable factors can typically provide you with the next worth, you continue to want cash-back rewards to cowl the bills of journey these transferable factors can’t erase.
TSA PreCheck/International Entry credit score
The cardholder will obtain an as much as $100 International Entry credit score each 4 years, which can be utilized to cowl the International Entry or TSA PreCheck enrollment payment. When you’ve got not but signed up for International Entry, this card will successfully pay you $5 to enroll or re-up your membership as soon as each 4 years.
Which advantages should not definitely worth the $95 annual payment?
Duplicate advantages
For those who maintain different premium rewards playing cards, among the advantages of the BofA Premium Rewards card may be duplicative or much less beneficiant.
Many playing cards additionally provide International Entry credit, which you solely actually need to make use of as soon as each 4 or 5 years. For those who maintain an American Specific, Citi or Chase card to earn these level currencies, you possible have already got most of the journey advantages lined, they usually might provide extra safety.
Rewards for Common and Gold Tier Most well-liked Rewards members
For those who maintain no tier or solely Gold tier standing within the Most well-liked Rewards Program, your baseline money again is lower than 2%. As beforehand talked about, different playing cards can subsequently earn you extra cash again, even with no annual payment just like the Citi Double Money Card.
Secondary rental automobile insurance coverage
This collision harm waiver (CDW) protection will solely kick in after your private insurance coverage covers the utmost allowed in your coverage. That makes the secondary protection not very useful, in my view, and does not stack as much as the main protection the Chase Sapphire Most well-liked® Card and Chase Sapphire Reserve® present.
Backside line
For those who qualify for the Platinum or Platinum Honors tiers within the Most well-liked Rewards program, it is best to think about signing up for the Financial institution of America Premium Rewards bank card. The flexibility to earn as much as 2.625% money again on the vast majority of purchases and as much as 3.5% money again on journey and eating is improbable. That a lot money again can simply subsidize your transferable factors earnings and canopy money journey bills.
Even with out top-tier Most well-liked Rewards membership, a 60,000-point bonus ($600 worth) and the $100 annual airline incidental payment means the cardboard virtually pays you to carry it.
Apply right here: Financial institution of America Premium Rewards bank card
