The Bank of America Customized Cash Rewards Credit Card

The Bank of America Customized Cash Rewards credit card presents a unique proposition for consumers looking to maximize their cash back earnings through personalized spending categories. This card is tailored for those who appreciate flexibility and wish to optimize rewards in specific areas of their spending.

Reward Structure

The standout feature of the Bank of America Customized Cash Rewards card is its adaptable reward structure, designed to cater to individual spending habits. Cardholders can select one of six categories to earn 3% cash back: gas, online shopping, dining, travel, drug stores, or home improvements and furnishings.

The inclusion of Electric Vehicle Charging (EVC) Stations and expanded online shopping categories further enhances its appeal, reflecting modern consumer trends.

In addition to the 3% cash back category, the card offers 2% cash back at grocery stores and wholesale clubs. All other purchases earn a flat 1% cash back. However, there is a quarterly spending cap of $2,500 on the combined 2% and 3% categories, which, once exceeded, defaults those purchases to the 1% rate.

Sign-Up Bonus and Annual Fee

New cardholders can take advantage of a $200 online cash rewards bonus after spending $1,000 in the first 90 days of account opening. This sign-up bonus is competitive, especially considering the card’s $0 annual fee, making it an accessible option for a broad range of users.

APR and Rewards Redemption

The Bank of America Customized Cash Rewards credit card features a variable APR ranging from 18.24% to 28.24% on purchases and balance transfers. This range is relatively standard, but it’s crucial for cardholders to be mindful of it to avoid interest charges that could negate the rewards earned.

When it comes to redeeming rewards, the card offers substantial flexibility. Cash back can be redeemed as a direct deposit into a Bank of America account, a statement credit, or for purchases made through the Bank of America Travel Center. There is a minimum redemption amount of $25 for certain options, which is a manageable threshold for most users.

Pros and Cons

Like any financial product, the Bank of America Customized Cash Rewards credit card has its advantages and disadvantages.

» Pros:

• Customizable Cash Back Categories: The ability to choose your 3% cash back category each month allows for a tailored rewards experience that can adapt to changing spending patterns.
• No Annual Fee: With no annual fee, the card remains cost-effective, ensuring that all rewards earned contribute to net benefits.
• Flexible Redemption Options: The variety of redemption methods, including automatic redemption into a Bank of America account, adds convenience and enhances the card’s utility.

» Cons:

• Quarterly Spending Cap: The $2,500 cap on combined 2% and 3% categories each quarter can limit the rewards potential for high spenders in these categories.
• Limited to Cash Back: The card’s rewards are restricted to cash back, which may not appeal to those looking for travel rewards or other types of benefits.
• Lack of Additional Benefits: Compared to some other cards, it lacks significant perks such as travel insurance, purchase protection, or extensive travel benefits.

Customer Service and Additional Features

Customer satisfaction is a critical component of any credit card experience. The Bank of America Customized Cash Rewards card holds strong customer service ratings, evidenced by its J.D. Power 2020 customer satisfaction score of 812. Furthermore, the card’s accompanying mobile app receives high ratings on both the Google Play Store and Apple App Store, indicating a user-friendly digital experience.

Additional features include fraud protection, overdraft protection for linked Bank of America accounts, and comprehensive mobile banking services. These features collectively enhance the card’s appeal by offering peace of mind and convenience.

Ideal User Profile

The Bank of America Customized Cash Rewards credit card is particularly well-suited for moderate spenders who can benefit from the flexibility of selecting their 3% cash back category. It’s ideal for those who spend consistently in the chosen categories and can manage their spending to stay within the quarterly cap limits.

The card also benefits those who are already integrated into the Bank of America ecosystem, as it allows for seamless rewards management and potential enhancements through additional programs.

Preferred Rewards Program

One of the most compelling features of the Bank of America Customized Cash Rewards card is its synergy with the Bank of America Preferred Rewards program. This program is available to eligible Bank of America and Merrill account holders and can significantly boost cash back earnings.

Depending on the account balance, cardholders can see an increase in their cash back by 25% to 75%. This tiered reward structure rewards loyalty and higher balances, making it a valuable addition for those who already have substantial banking relationships with Bank of America.

Comparison with Other Cards

When comparing the Bank of America Customized Cash Rewards card to other credit cards, it stands out for its flexibility and lack of an annual fee. However, for those who prefer simplicity, a flat-rate cash back card might be more appealing. Cards such as the Citi® Double Cash Card, which offers 2% cash back on all purchases, can be more straightforward but lack the customizable reward categories.

In contrast, the Chase Freedom Flex℠ offers a combination of rotating 5% cash back categories and fixed categories, which can provide higher rewards potential but requires more active management. The Bank of America Customized Cash Rewards card strikes a balance between these options, offering flexibility without the need for constant attention to changing categories.

Conclusion

The Bank of America Customized Cash Rewards credit card is a versatile option for consumers looking to maximize their cash back through personalized spending categories. Its no annual fee structure, competitive sign-up bonus, and flexible redemption options make it a strong contender in the cash back credit card market.

While the quarterly cap on bonus categories might limit some users, the card’s overall value, especially when paired with the Preferred Rewards program, makes it a worthwhile choice for many.