The Bank of America® Unlimited Cash Rewards credit card offers an attractive option for those looking for simplicity in earning cash back. With unlimited 1.5% cash back on all purchases and no annual fee, this card is a practical choice for everyday spending. Furthermore, Bank of America Preferred Rewards members can boost their earnings significantly, with cash back rates reaching up to 2.625%.
For those who value cash back over complex reward structures, the Bank of America Unlimited Cash Rewards card provides an appealing balance of rewards, ease of use, and benefits within the Bank of America ecosystem. Below, we explore the key features, benefits, and potential downsides of this card to help you decide if it deserves a place in your wallet.
Key Features of the Bank of America Unlimited Cash Rewards Card
The Bank of America Unlimited Cash Rewards credit card is designed for individuals who prefer a straightforward rewards system. Here are the essential features:
- Unlimited 1.5% Cash Back: The card earns a flat rate of 1.5% cash back on all purchases, without category restrictions or spending limits.
- No Annual Fee: You won’t pay an annual fee, which allows you to keep more of your earnings.
- Welcome Bonus: New cardholders can earn a $200 cash rewards bonus after spending $1,000 within the first 90 days of account opening.
- Flexible Redemption Options: Cash back can be redeemed as a deposit into Bank of America checking or savings accounts, as a statement credit, or into eligible Merrill® accounts, including 529 plans.
These features make the card ideal for everyday spending, and its simplicity ensures that you won’t need to track categories or spending limits to maximize rewards.
Preferred Rewards Program: A Boost for Loyal Customers
Bank of America’s Preferred Rewards program can enhance the earning potential of the Unlimited Cash Rewards card. Depending on your tier in the program, you could earn up to 2.625% cash back on every purchase. Here’s how it works:
| Tier Level | Balance Range | Cash Back Rate |
|---|---|---|
| Regular | None | 1.5% |
| Gold | $20,000 – $49,999 | 1.875% |
| Platinum | $50,000 – $99,999 | 2.25% |
| Platinum Honors | $100,000+ | 2.625% |
To qualify for the Preferred Rewards program, you must have an eligible Bank of America personal checking account and a three-month average combined balance across Bank of America and/or Merrill accounts. If you have substantial savings or investments with Bank of America, this program can turn the Unlimited Cash Rewards card into one of the highest-earning no-annual-fee cards available.
Welcome Bonus and Earning Potential
The Bank of America Unlimited Cash Rewards card offers a $200 welcome bonus after you spend $1,000 in the first 90 days. This is a solid bonus for a no-annual-fee card, and with a manageable spending requirement, it’s accessible to many cardholders.
When it comes to everyday earning, the card provides 1.5% cash back on all purchases. While this is competitive, Preferred Rewards members can maximize their cash back earnings by reaching rates of up to 2.625% on all purchases, which is notably higher than the industry standard for flat-rate cash back cards.
Redeeming Cash Back
Redemption options for the Bank of America Unlimited Cash Rewards card are simple, albeit somewhat limited compared to some competitors. You have three primary ways to redeem your cash back:
- Deposit into a Bank of America Account: You can deposit your cash back directly into a Bank of America checking or savings account.
- Statement Credit: Apply your cash back as a statement credit to reduce your card balance.
- Transfer to Merrill Accounts: Cash back can also be credited to eligible Merrill accounts, including Merrill investment accounts and 529 college savings plans.
Although these redemption options provide flexibility for Bank of America customers, they are limited compared to cards that offer travel, gift cards, or merchandise as redemption choices. However, if you prefer straightforward cash back that you can readily access, this card’s options should suffice.
Pros and Cons
Pros:
- No Annual Fee: This card doesn’t charge an annual fee, allowing you to maximize your earnings.
- Up to 2.625% Cash Back: Preferred Rewards members with qualifying account balances can significantly boost their cash back rate, which is highly competitive.
- Unlimited Cash Back: You’ll earn a consistent rate of 1.5% cash back on all purchases, with no limits.
- Flexible Cash Back Options: Cash back can be redeemed in various ways, including direct deposits into Bank of America accounts and as statement credits.
Cons:
- Foreign Transaction Fee: There’s a 3% foreign transaction fee, making it less appealing for international travel.
- Limited Redemption Flexibility: Unlike some cards, you won’t find travel or merchandise redemption options here.
- Competing Cards with Higher Rates: Some no-annual-fee cards, such as the Wells Fargo Active Cash® Card, offer unlimited 2% cash back, which may provide better returns for non-Bank of America customers.
Alternatives to Consider
While the Bank of America Unlimited Cash Rewards credit card offers strong rewards for Bank of America customers, other cards may offer more appealing features depending on your preferences:
- Wells Fargo Active Cash® Card: This card earns unlimited 2% cash back on all purchases and includes a $200 bonus after spending $500 in the first three months. With no annual fee and no spending categories to track, it’s a direct competitor to the Bank of America Unlimited Cash Rewards.
- Chase Freedom Unlimited®: Offers 1.5% cash back on all purchases, plus category bonuses like 5% back on travel booked through Chase Travel and 3% on dining. Cash back can also be converted to Chase Ultimate Rewards points if you have a qualifying Chase card, providing access to Chase’s extensive travel partners.
- Capital One VentureOne Rewards: If you prefer miles, this card offers 1.25 miles per dollar on all purchases, with miles transferable to over 15 travel partners. It’s an attractive option for those seeking no-annual-fee rewards with travel flexibility.
These alternatives provide different benefits and earning potential, so consider your spending habits and preferred redemption options when choosing the best card for you.
Who Should Consider the Bank of America Unlimited Cash Rewards Card?
The Bank of America Unlimited Cash Rewards card is ideal for individuals who want a straightforward way to earn cash back with minimal hassle. It’s especially beneficial for Bank of America Preferred Rewards members who can leverage higher cash back rates due to their account balances.
However, if you’re looking for higher base rewards without the need to be part of a loyalty program, or if you frequently travel internationally, another card may better suit your needs. For non-Bank of America customers, the card’s value diminishes slightly compared to other flat-rate cash back cards that offer 2% or more without an additional program requirement.
