Bank of America expands rewards access with new loyalty program
Attention, Bank of America account holders: On May 27, the issuer will launch a new loyalty program called BofA Rewards. And unlike the current Preferred Rewards® program, the new program won’t require members to maintain a minimum balance to join.
While the move puts rewards within reach for millions of additional customers, some current program members may see their perks change. With new tier thresholds and expanding access to benefits and credits, here’s what eligible members need to know about BofA Rewards.
Related: Is the Bank of America Premium Rewards Card worth the $95 annual fee?
Preferred Rewards vs. BofA Rewards: What is changing?
For Bank of America personal account holders who did not meet the minimum $20,000 balance requirements for the Preferred Rewards program, BofA Rewards is a total win. With no fee to join the Member tier, account holders can earn additional benefits as customers reach financial milestones, such as buying a house or car. Plus, if you have an eligible Bank of America card, you can maximize your earning potential with a credit card bonus.
However, for current Preferred Rewards members, the new benefits and structured tiers may not be as lucrative. To put it into perspective, here is a look at the balance threshold tiers for the Preferred Rewards and BofA Rewards programs:
| Preferred Rewards | BofA Rewards |
|---|---|
Gold ($20,000 or more in total assets) | Member (less than $30,000 in total assets) |
Platinum ($50,000 or more in total assets) | Preferred Plus ($30,000 to $100,000 in total assets) |
Platinum Honors ($100,000 or more in total assets) | Preferred Honors ($100,000 to $1 million in total assets) |
Diamond Honors ($1 million or more in total assets) | Premier (more than $1 million in total assets) |
Gold status members currently earn a 25% credit card bonus, a 0.25% auto loan interest rate discount, a 1% foreign currency exchange rate discount (for mobile and online orders only, includes free standard shipping) and a 0.125% home equity line of credit.
Current Gold account holders who may now qualify for the Member tier will only receive a 10% credit card rewards bonus, a 0.10% auto loan discount and no discount on the foreign currency exchange rate.
Similarly, Platinum Honors members currently receive a 75% credit card rewards bonus, while those with Preferred Honors status will only receive a 50% bonus.
Though some members may not love these changes, many account holders can join the program when it launches May 27 to reap the new and enhanced program perks.
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What are the tiers and benefits of the BofA Rewards program?
If you currently have an active personal account with Bank of America, regardless of your account balance, you can join the new program at the Member tier for benefits like mortgage fee discounts and cash-back deals.
Moving up a tier will require meeting a minimum balance threshold based on a three-month average across qualifying Bank of America and Merrill accounts.
The new tiers are as follows:
Member: Less than $30,000 in total assets
- A 10% rewards bonus on eligible credit card spending
- A $100 mortgage fee discount (save $100 on closing costs)
- A 0.10% auto loan discount
- Cash-back deals on big-name brands
- Fraud and identity monitoring tools
Preferred Plus: $30,000 to $100,000 in total assets
- A 25% rewards bonus on eligible credit card spending
- A $300 mortgage fee discount (save $300 on closing costs)
- A 0.25% auto loan discount
- No fees on seven select services (debit card rush, cashier’s checks, check image service fee, domestic and international inbound wire transfers, standard order check design or $10 discount, and stop payment fee)
- A 0.250% HELOC rate discount
- A 0.5% foreign currency exchange rate discount
- A 0.10% discount on Merrill Guided Investing
- Unlimited free checking and savings accounts
- Free non-Bank of America ATM service (one time per month; U.S. only)
- Fraud and identity monitoring tools
- Cash-back deals on big-name brands
- Priority service
Preferred Honors: $100,000 to $1 million in total assets
- A 50% rewards bonus on eligible credit card spending
- A $600 mortgage fee discount (save $600 on closing costs)
- A 0.35% auto loan discount
- No fees on seven select services (debit card rush, cashier’s checks, check image service fee, domestic and international inbound wire transfers, standard order check design or $10 discount, and stop payment fee)
- A 0.375% HELOC rate discount
- A 1% foreign currency exchange rate discount
- A 0.15% discount on Merrill Guided Investing
- Unlimited free checking and savings accounts
- Free non-Bank of America ATM service (unlimited; U.S. only)
- Fraud and identity monitoring tools
- Cash-back deals on big-name brands
- Priority service
- Lifestyle benefits, including access to 60-plus offers and experiences, such as benefits from partners like Audi, Lexus and Virgin Hotels
- Up to $96 in streaming and news outlet subscription credit per year (up to $8 per month)
Premier: More than $1 million in total assets
- A 75% rewards bonus on eligible credit card spending
- A 0.375% mortgage fee discount
- A 0.50% auto loan discount
- No fees on all services
- A 0.625% HELOC rate discount
- A 2% foreign currency exchange rate discount
- A 0.15% discount on Merrill Guided Investing
- Unlimited free checking and savings accounts
- Free non-Bank of America ATM service (unlimited)
- Fraud and identity monitoring tools
- Cash-back deals on big-name brands
- Priority service
- Lifestyle benefits, including Preferred Honors benefits, plus more exclusive luxury rewards from partners like Blacklane, Mercedes-Benz and Sollis Health
- Up to $180 in streaming and news outlet subscription credit per year (up to $15 per month)
How to enroll in BofA Rewards
Existing Preferred Rewards members will automatically be enrolled in the new program May 27. For members whose benefits will change because of the newly structured tiers, current benefits will remain in place for at least six months.
For example, if you are currently enrolled in the Preferred Rewards program and have $25,000 in total assets, you have Gold status. With this status, you get benefits like a 25% credit card rewards bonus, a 0.25% auto loan interest rate discount and a 0.125% HELOC rate discount.
However, with the new BofA Rewards total asset threshold, you would now qualify for the Member tier ($30,000 or less in total assets). Therefore, you would only receive a 10% credit card rewards bonus, a 0.10% auto loan interest rate discount and no HELOC rate discount.
But since you hold Gold status in the Preferred Rewards program, your benefits will not change for at least six months.
If you are not a Preferred Rewards member but have a personal account with Bank of America, you can join BofA Rewards. To join, click on the BofA Rewards section on your account page; you’ll see an option to enroll if you meet the requirements. After you have enrolled, your benefits will activate within 30 days. Again, no minimum balance is required to join as a program member.
You will be automatically upgraded to a new tier when a new total balance threshold is reached. As with the Preferred Rewards program, you will maintain your status for an entire year. If at that point your account does not maintain the minimum balance requirements, you will have a three-month grace period before you are dropped to a lower status tier.
Related: Bank of America Premium Rewards credit card review
Maximize the BofA Rewards program with credit card spending
At TPG, we love stacking offers and maximizing earnings. If you join the new loyalty program and have an eligible Bank of America credit card, you can earn additional points or cash back.
Check out how many BofA Rewards points you will earn with the Bank of America® Premium Rewards® credit card.
| Cardholder earning rates | Member (10% bonus) | Preferred Plus (25% bonus) | Preferred Honors (50% bonus) | Premier (75% bonus) |
|---|---|---|---|---|
2 points per dollar spent on travel and dining | 2.2 points per dollar spent | 2.5 points per dollar spent | 3 points per dollar spent | 3.5 points per dollar spent |
1.5 points per dollar spent on everyday purchases | 1.65 points per dollar spent | 1.875 points per dollar spent | 2.25 points per dollar spent | 2.625 points per dollar spent |
With the Bank of America® Travel Rewards credit card, you will earn the following credit card bonuses:
| Cardholder earning rates | Member (10% bonus) | Preferred Plus (25% bonus) | Preferred Honors (50% bonus) | Premier (75% bonus) |
|---|---|---|---|---|
3 points per dollar spent on travel booked through the Bank of America Travel Center | 3.3 points per dollar spent | 3.75 points per dollar spent | 4.5 points per dollar spent | 5.25 points per dollar spent |
1.5 points per dollar spent on everyday purchases | 1.65 points per dollar spent | 1.875 points per dollar spent | 2.25 points per dollar spent | 2.625 points per dollar spent |
So, if you hold either credit card and join the BofA Rewards program, you will earn at least 1.65 points per dollar spent on everyday purchases.
For those who prefer uncomplicated loyalty programs, your points can be redeemed at a fixed value of 1 cent per point for travel, gift cards or even cash back.
If you prefer to solely earn cash-back rewards, you can also earn a credit card bonus with the Bank of America® Unlimited Cash Rewards credit card or the Bank of America® Customized Cash Rewards credit card; the cash-back percentage depends on your membership tier.
Bottom line
For current Preferred Rewards members, this new program may have a few downsides, such as higher account thresholds and lower bonuses for certain tiers. However, for those who have not been able to reap the benefits of Bank of America’s loyalty program, BofA Rewards is advantageous, especially for select eligible credit card holders. With the right card, members can earn up to 2.625% cash back (or 2.625 points per dollar spent) on everyday purchases.
Overall, if you have a personal account with Bank of America, BofA Rewards is worth enrolling in, as you can maximize your earnings and potentially unlock a few discounts and select perks.
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