Bank of America Premium Rewards Credit Card review: A loyal companion for Preferred members

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If you are a loyal Bank of America customer and are part of its Preferred Rewards program, you can boost your point-earning efforts with the Bank of America Premium Rewards Credit Card.

This card offers a straightforward rewards structure: 2X points on travel and dining purchases, and 1.5X points on everything else. But here’s where it gets interesting — as a Preferred Rewards member, you can boost your earnings by up to 75%, depending on your tier.

While the card has an annual fee of $95, perks like a welcome offer worth $600 (conditions apply) and up to $200 in travel statement credits can quickly offset the cost. You’ll get the most mileage out of this card if you’re a part of the Preferred Rewards program since you can elevate your rewards-earning potential.

How the Bank of America Premium Rewards Credit Card works

The Bank of America Premium Rewards Credit Card can be a suitable choice for frequent travelers looking for a card with some bonus features.

The card offers unlimited 2X points for every dollar you spend on travel and dining purchases and unlimited 1.5X points on all other purchases. You can then redeem your points for cash back, which you can deposit into your Bank of America checking or savings account or credit to eligible Merrill accounts. Additionally, you can redeem points for gift cards or travel purchases at the Bank of America Travel Center.

Bank of America Preferred Rewards members are eligible for premium benefits — up to 75% more every time you use the card, depending on your tier. 

Bank of America Premium Rewards Credit Card rewards

The rewards structure of this card is designed to benefit frequent travelers and diners, with the potential for increased earnings for Bank of America Preferred Rewards members. 

Earning rewards

The standard rewards rates for the Bank of America Premium Rewards card are:

• Unlimited 2X points on travel and dining purchases
• Unlimited 1.5X points on all other purchases

This proposition is slightly more convenient if you are a travel junkie or dining enthusiast; however, it does stand out for its simplicity. There are no caps on how much you can earn, and, except for travel and dining, no boosted categories. This means keeping track of your rewards is hassle-free.

The exciting part is that if you are a Bank of America Preferred Rewards member, your rewards will skyrocket. There are three membership tiers — Gold, Platinum, and Platinum Honors — determined by the combined balance in your eligible Bank of America deposit and Merrill investing accounts.

Here’s a look at what you need to qualify for each tier and how many extra points you could earn.

The higher your tier in the Preferred Rewards program, the more you can earn every time you swipe.

For example, let’s say you spent $10,000 on travel and dining purchases. At the regular rate of 2X points per dollar spent, this would be 20,000 points. But if you were a Preferred Rewards member, that $10,000 could be worth up to 35,000 points. 

Redeeming rewards

Once you earn enough points, Bank of America offers various redemption options:

• Cash back deposited into a Bank of America checking or savings account
• Credit to an eligible Merrill account, including 529 accounts 
• Statement credit to your credit card
  Gift cards
• Travel purchases at the Bank of America Travel Center

Regardless of how you decide to redeem, the value of your points will be the same, 1 cent ($0.01) per point. This contrasts with other cards that earn flexible points with fluctuating values depending on how you redeem them. 

For instance, with Chase — which offers the Chase Sapphire Preferred® Card, a comparable card — points increase in value when you redeem through Chase Travel℠. 

Bank of America Premium Rewards Credit Card benefits

Beyond its rewards program, this card offers a range of benefits for cardholders. Here's a closer look at the sign-up bonus and other perks you can expect.

Sign-up bonus

The Bank of America Premium Rewards Credit Card offers an attractive sign-up bonus that helps it stand out. Provided you make at least $4,000 worth of purchases in your first 90 days with the card, you will receive 60,000 online bonus points, which are worth $600.

This is a solid incentive to attract new cardholders and is in line with industry standards. The Chase Sapphire Preferred also offers 60,000 bonus points if you spend $4,000 on purchases in the first 3 months after opening an account.

The difference is that because Chase points have a higher value when redeemed through Chase Travel℠, this welcome bonus can be worth up to $750. 

Additional perks

Besides its rewards-earning potential and sign-up bonus, the Bank of America Premium Rewards Credit Card offers several additional perks, primarily for travelers.

• No foreign transaction fees: This is attractive if you want to use the card while abroad. 
• Travel credits: You’ll receive up to $100 of annual statement credit, which you can use for airline incidentals such as seat upgrades, luggage, and airline lounge fees. The card also offers up to $100 every four years to apply towards TSA PreCheck or Global Entry application fees.

This card also offers travel insurance in case of delays, cancellations, and interruptions, purchase protection, and auto support through the 24/7 Roadside Dispatch program.

If you love to travel, you might particularly appreciate that the card provides access to Visa Signature-level benefits, including concierge service to help you with travel, restaurant, and event reservations, as well as exclusive experiences through the Visa Signature Luxury Hotel Collection. 

Bank of America Premium Rewards Credit Card fees & charges

It’s important to understand the costs associated with a card, such as the annual fee, interest rates, and other potential charges.

Annual fee

The Bank of America Premium Rewards Credit Card charges a $95 annual fee, which positions it as a mid-tier card. This means that its annual fee is comparable to some competitors, like the Chase Sapphire Preferred and the Capital One Venture Rewards Credit Card. 

Interest rates

While we strongly recommend paying your balance in full each month to avoid interest charges, there might be times when, due to a particular circumstance, this is not possible.

Because of this, it helps to be fully aware of a credit card’s interest rates.

In the case of the Bank of America Premium Rewards, your APR will vary between 21.24% and 29.24%, based on your creditworthiness. It will also vary with the market based on the Prime Rate. This range is the same for balance transfers (See rates and fees). 

Cash advances are more expensive. If you withdraw cash from your credit card, you will pay 29.24%. You can avoid this hefty price tag by optimizing your cash management — make sure you have enough in hand so you do not need to draw more from your credit card. Ideally, you’d be using your credit card only for purchases.

The card’s interest rates are comparable to those of the Capital One Venture Rewards, for example — these stand between 19.99% and 29.99%, depending on your creditworthiness, and at 29.99% for cash advances (See rates and fees). 

Other fees

Once you get a credit card, it is important to make your payments on time. Missing payments or paying late not only affects your credit score — reducing the likelihood of getting credit on favorable terms in the future — but it also carries financial penalties.

If you pay your Bank of America Premium Rewards Credit Card past the due date, you will be charged $29 the first time. Then, every subsequent occurrence will set you back $40.

It helps to plan ahead to minimize these fees. Most banks now allow you to automate your credit card payment through the Bill Pay feature. If not, send your payment a few days before your due date. This way, you eliminate the risk of any hiccup that could cause a late payment mark on your credit history.
Intro APR offer

The card does not offer an introductory 0% APR period for purchases or balance transfers, so if you want to transfer a balance or get some leeway to make purchases and pay them over time without interest, this is not the card for you. 

How the Bank of America Premium Rewards Credit Card compares
 

Who should consider the Bank of America Premium Rewards Credit Card?

The Bank of America Premium Rewards Credit Card would benefit existing Bank of America customers enrolled in its Preferred Rewards program the most. If you are a member, you can boost your rewards rate by up to 75%, which makes this card unique.

Alternatively, travel enthusiasts could find this card relatively attractive due to some of its additional perks. However, alternatives like the Chase Sapphire Preferred and the Capital One Venture Rewards might offer better value for the same annual fee. 

How we rated this card

Every card review we publish undergoes a rigorous editorial process to ensure accuracy and objectivity. Learn more about our methodology here.

The bottom line

As we always say, the journey of finding the right credit card is deeply personal.

Before jumping in, take the time to outline your financial goals and needs and what you would expect from a credit card. Once you’re clear on what you aim to earn in terms of rewards, you can choose the right credit card that fits your needs and strategize accordingly to maximize your card’s earning potential. 

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.