The Bank of America®️ Premium Rewards®️ credit card offers compelling benefits for those who qualify, especially high earners and Bank of America loyalists. With the ability to earn cash back, travel credits, and more, it positions itself as a strong option among rewards cards. However, with an annual fee of $95, you might wonder if it’s the right card for you. Let’s break down the earning potential, benefits, and considerations to help you determine if this card justifies the cost.
Bank of America Premium Rewards Card Earning Structure
The cash-back earning potential of the Bank of America Premium Rewards card hinges on your participation in the Bank of America Preferred Rewards Program. This program, which you need to enroll in separately, links your total holdings across Bank of America and Merrill accounts to the rewards structure.
Here’s how the earnings stack up based on your tier in the Preferred Rewards Program:
| Spend Categories | Regular 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 4 – Diamond Honors ($1,000,000+) |
|---|---|---|---|---|---|
| Travel/Dining Earnings | 2 points per dollar | 2.5 points per dollar | 3 points per dollar | 3.5 points per dollar | 3.5 points per dollar |
| Other Purchase Earnings | 1.5 points per dollar | 1.875 points per dollar | 2.25 points per dollar | 2.625 points per dollar | 2.625 points per dollar |
Each point is worth 1 cent when redeemed as cash back into your Bank of America, Merrill Lynch, or 529 college savings account. Points can also be used for travel purchases or gift cards, but cash back remains the simplest and most rewarding option.
Benefits That Justify the $95 Annual Fee
1. Sign-Up Bonus
New cardholders can earn 60,000 bonus points after spending $4,000 within the first 90 days of account opening, which equates to $600. This substantial bonus easily offsets the $95 annual fee in the first year, making the card especially appealing for those who can meet the spend requirement.
2. Airline Incidental Fee Credit
The card offers up to $100 in annual airline credits, which can be used toward seat upgrades, baggage fees, and in-flight services. While it doesn’t cover airfare, if you regularly incur these charges, this benefit can essentially pay for the card, with $5 left over after applying the full $100 credit.
3. Platinum and Platinum Honors Preferred Rewards Members
If you maintain a balance of $50,000 or more in Bank of America or Merrill accounts, you unlock the upper tiers of the Preferred Rewards program, significantly increasing your earnings.
For Platinum Honors members, the rewards structure offers 3.5 points per dollar on travel and dining and 2.625 points on all other purchases—well above many competitors.
4. TSA PreCheck/Global Entry Credit
The card offers a Global Entry or TSA PreCheck credit (up to $100) every four years, effectively paying for itself if you haven’t already enrolled in these trusted traveler programs.
Benefits That May Fall Short
1. Duplicated Benefits
Many premium rewards cards offer benefits like Global Entry or TSA PreCheck credits, as well as travel protection perks, which may be redundant if you already hold another rewards card from issuers like Chase or American Express. In that case, the Bank of America Premium Rewards card may not add enough unique value to justify holding both.
2. Low Earnings for Non-Preferred Rewards Members
For cardholders not enrolled in the Preferred Rewards program or only qualifying for the Gold tier, the rewards structure doesn’t outperform no-annual-fee competitors like the Citi® Double Cash Card. In these cases, the baseline earning rates may not be compelling enough to cover the $95 fee.
3. Secondary Rental Car Insurance
Unlike some other premium rewards cards, the Bank of America Premium Rewards card only offers secondary rental car insurance, meaning it only kicks in after your personal insurance. This pales in comparison to primary rental insurance offered by cards like the Chase Sapphire Preferred®️ Card.
Redeeming Points with the Bank of America Premium Rewards Card
1. Sky-High Flexibility
Points are most easily redeemed for cash back directly into your Bank of America, Merrill, or 529 accounts. You can also use them for travel purchases, but cash-back redemption is typically the best value. There’s also no minimum redemption amount, adding a layer of flexibility.
2. The Preferred Rewards Advantage
As mentioned earlier, qualifying for higher tiers in the Preferred Rewards Program greatly increases your earning potential, making this card particularly attractive for those with significant assets in Bank of America or Merrill accounts.
Alternatives to the Bank of America Premium Rewards Card
1. Citi® Double Cash Card
With 2% cash back on all purchases (1% when you buy and 1% when you pay), the Citi Double Cash is a no-fee alternative for those who don’t want to deal with tiered rewards.
2. Chase Sapphire Preferred®️ Card
This card offers more lucrative travel benefits, primary rental car insurance, and points that transfer to travel partners, making it an excellent alternative for frequent travelers who want versatility.
3. Fidelity®️ Rewards Visa Signature®️ Card
For investors, the Fidelity Rewards card offers a flat 2% cash back, which can be deposited directly into your brokerage account. This makes it a solid competitor for the Bank of America Premium Rewards card, especially for those focused on investment growth.
Final Thoughts
The Bank of America Premium Rewards credit card is an excellent option for those already invested in the Bank of America ecosystem, particularly for those at the Platinum and Platinum Honors tiers. The $95 annual fee is easily justified for frequent travelers who can make use of the airline credit and those who can hit the higher reward tiers.
However, if you’re not able to fully leverage the Preferred Rewards Program or if you already hold other premium rewards cards, the Bank of America Premium Rewards card may not be as compelling. Consider your overall financial picture and whether the perks align with your spending habits before deciding if this card deserves a place in your wallet.
