All the pieces you need to learn about Financial institution of America’s Most well-liked Rewards program

Whereas it is fantastic to redeem your points and miles for travel preparations, resembling lodging and flights, there could be many different bills concerned in planning a visit, resembling automobile leases, practice tickets, fuel and campsite charges. Fortunately, utilizing cash-back rewards together along with your factors and miles can prevent much more cash in your subsequent trip.

With that in thoughts, let’s look at the often-overlooked Bank of America Preferred Rewards® program. On high of the easy banking advantages members can anticipate, consolidating your funds with Financial institution of America may also enhance your cash-back earnings with a few of the best Bank of America credit cards.

That is as a result of Financial institution of America designed its Most well-liked Rewards program to incentivize customers to maneuver their checking, financial savings, funding and retirement accounts to Financial institution of America and Merrill. The upper your steadiness of complete property with the financial institution, the extra perks you’ll be able to unlock, together with with its bank cards. Relying in your holdings and the kind of rewards you are seeking to accumulate, it is likely to be time to cease ignoring Financial institution of America Most well-liked Rewards.

Financial institution of America Most well-liked Rewards Program

Learn how to qualify for Financial institution of America’s Most well-liked Rewards Program

To qualify for the Financial institution of America Most well-liked Rewards program, you could have each of the next:

• An energetic, eligible Financial institution of America checking account
• A 3-month mixed common every day steadiness of $20,000 or extra in qualifying Financial institution of America deposit accounts and/or Merrill funding accounts

There are 5 Most well-liked Rewards tiers. You may qualify for every primarily based in your mixed common every day steadiness:

• Gold: $20,000 or extra in complete property
• Platinum: $50,000 or extra in complete property
• Platinum Honors: $100,000 or extra in complete property
• Diamond: $1,000,000 or extra in complete property
• Diamond Honors: $10,000,000 or extra in complete property

Whereas not exorbitant, even the bottom stage requires some fairly excessive figures. However do not throw within the towel immediately. When you’ve got an emergency fund, a vacation account, a financial savings account and a checking account, combining all these balances might qualify you for a Most well-liked Rewards tier. When you add in funding accounts, resembling IRAs, you could even discover that the Platinum or Platinum Honors tiers are inside attain.

Your steadiness would not must originate with Merrill or Financial institution of America to rely towards every threshold. You’ll be able to roll current IRAs and funding accounts over to Merrill or Financial institution of America and instantly use these balances to start establishing a three-month common to spice up your tier. In fact, you may have to think about different issues like account administration charges and accessible funding choices to resolve whether or not doing so is an effective choice.

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Advantages of Financial institution of America’s Most well-liked Rewards Program

This is a chart of the 5 Most well-liked Rewards tiers, together with the related advantages of every:

Profit	Gold	Platinum	Platinum Honors	Diamond	Diamond Honors
Bank card rewards bonus	25%	50%	75%	75%	75%
Financial savings rate of interest booster	5%	10%	20%	20%	20%
Mortgage perks	$200 origination charge discount	$400 origination charge discount	$600 origination charge discount	0.250% rate of interest discount (when PayPlan is established)	0.375% rate of interest discount (when PayPlan is established)
Auto mortgage rate of interest low cost	0.25%	0.35%	0.50%	0.50%	0.50%
Residence fairness rate of interest low cost	0.125%	0.250%	0.375%	0.625%	0.750%
No-fee banking providers	Included	Included	Included	Included	Included
Free non-Financial institution of America ATM transactions	N/A	12/yr	Limitless within the U.S.	Limitless within the U.S. and internationally	Limitless within the U.S. and internationally
Merrill Guided Investing charge low cost	0.05%	0.10%	0.15%	0.15%	0.15%
International forex alternate charge low cost (for cellular and on-line orders solely, contains free customary transport)	1%	1.5%	2%	2%	2%
Entry to unique life-style advantages	N/A	N/A	N/A	Sure	Sure

Now, let’s take a better take a look at every of those advantages.

Financial savings Curiosity Charge Booster

It’s worthwhile to have a Financial institution of America Benefit Financial savings account and be an enrolled Most well-liked Rewards member to get pleasure from this profit. When you’ve got an current financial savings account, it won’t mechanically convert to a Financial institution of America Benefit Financial savings account once you enroll in Most well-liked Rewards. Remember to request the conversion when becoming a member of Most well-liked Rewards.

At Gold, the rate of interest enhance is 5%. That probably sounds higher than what it’s. For example, in case your rate of interest is 1.00%, a 5% charge booster would improve the rate of interest to 1.05%. This is the present annual proportion yield on a Financial institution of America Benefit Financial savings account for a pattern Florida resident to provide you some perspective:

You’ll be able to verify how this enhance would have an effect on the present annual proportion yield on a Financial institution of America Benefit Financial savings account in your area here.

Bank card rewards bonus

Most well-liked Rewards members earn a 25%, 50% or 75% rewards bonus on choose Bank of America cards. For bank cards that earn factors or money rewards, you’ll obtain a rewards bonus on each buy. Your incomes charge is predicated in your Most well-liked Rewards tier when the acquisition is posted to your account. We’ll get into how this performs out with particular playing cards beneath.

You’ll be able to earn the Most well-liked Rewards bonus on most Financial institution of America consumer-branded bank cards, together with the Bank of America® Premium Rewards® credit card, the Bank of America® Travel Rewards credit card, the Bank of America® Unlimited Cash Rewards credit card and the Bank of America® Customized Cash Rewards credit card, amongst others.

Associated: Chase Sapphire Preferred vs. Bank of America Travel Rewards — which should beginner travelers get?

Mortgage origination charge discount

Any time you’ll be able to reduce down on charges for purchasing or refinancing a house, you need to. Most well-liked Rewards members are eligible to obtain a hard and fast discount in one in every of two methods, relying in your membership tier:

• A greenback quantity off your origination charge (to not exceed its value)
• A proportion off your mortgage APR

The Most well-liked Rewards charge discount is not transferable. And you could not be capable to mix this charge discount with different reductions.

Auto mortgage rate of interest low cost

You need to full an auto buy finance or refinancing mortgage via Financial institution of America to qualify for a charge low cost. This profit will not be transferable, so solely the Most well-liked Rewards member can make the most of this perk.

In fact, you may must ensure that Financial institution of America provides probably the most aggressive charge after the low cost. In any other case, it won’t be price pursuing. Even 1 / 4 of a p.c might save or price you 1000’s of {dollars} over the lifetime of the mortgage.

Residence fairness rate of interest low cost

You may get a house fairness line of credit score rate of interest low cost of as much as 0.75%, relying in your Most well-liked Rewards standing stage. This profit is non-transferable, however you could possibly mix this perk with different dwelling fairness rate of interest reductions. And even co-borrowers are eligible so long as at the very least one applicant is enrolled or eligible to enroll.

No-fee banking providers

• ATM/Debit card rush charges
• ATM worldwide transaction charge
• Month-to-month upkeep charges on as much as 4 eligible checking and 4 financial savings accounts from Financial institution of America
• Non-Financial institution of America ATM charges for withdrawals, transfers or steadiness inquiries
• One overdraft safety switch charge waived per billing cycle

Moreover, Platinum and above incur no charges for incoming worldwide wire transfers and may open a small secure deposit field without spending a dime at a Financial institution of America department.

Free non-Financial institution of America ATM transactions

Within the U.S. and U.S. territories, Platinum and Platinum Honors members:

• Will not be charged non-Financial institution of America ATM charges
• Will obtain a refund of the ATM operator or community charge for withdrawals, steadiness inquiries and steadiness transfers

Platinum members obtain one free transaction per assertion cycle (as much as 12 yearly), and Platinum Honors members don’t have any cap. In the meantime, Diamond and Diamond Honors members have limitless no-fee transactions each within the U.S. and internationally.

Associated: 7 ways to save on overseas ATM withdrawals

Merrill Guided Investing charge low cost

Most well-liked Rewards members get pleasure from a charge low cost when using Merrill Guided Investing providers. You may get began with as little as $1,000 for Merrill Guided Investing or $20,000 for Merrill Guided Investing with an adviser.

Merrill Guided Investing sometimes prices a charge of 0.45% of property underneath administration, and Merrill Guided Investing with an advisor sometimes prices a charge of 0.85% of property underneath administration. Whereas these charges may appear small, they add up over time. As such, these prices can turn out to be a compound drain in your investments as they improve. So, it could be greatest to search for a monetary advisor that prices a hard and fast charge as an alternative of a proportion of your property.

International forex alternate charge low cost

All Most well-liked Rewards members will get some type of low cost for international forex orders via on-line banking or the cellular banking app. Relying in your standing tier, you may obtain a reduction between 1% and a pair of%.

Entry to unique life-style advantages

High-tier Diamond and Diamond Honors members will get pleasure from custom-made and distinctive life-style experiences, resembling journey, wellness, occasions, foods and drinks or different private providers. You may get a preview of a few of these curated provides here.

To maximise the Financial institution of America Most well-liked Rewards program, you may need to qualify for at the very least Platinum Honors and be eligible for the 75% bonus in your bank card rewards. In fact, it is not an awesome thought to make large funding and banking selections primarily based solely on bank card bonuses. Nonetheless, it could be worthwhile in the event you already plan to spend money on Merrill and have an current banking relationship with Financial institution of America. For those who do, listed here are a few of the financial institution’s rewards playing cards to think about and how one can maximize your cash-back earnings.

Financial institution of America Premium Rewards bank card

The Bank of America® Premium Rewards® credit card is a wonderful rewards credit card in its personal proper. But it surely will get much more aggressive once you add within the bonuses from the Most well-liked Rewards program.

The cardboard prices a $95 annual charge and provides a modest collection of advantages. For instance, cardholders get an up-to-$100 annual airline incidental fee statement credit, a Global Entry or TSA PreCheck application fee credit each 4 years (as much as $100) and a few respectable travel protections.

Nonetheless, this card shines with its incomes charges on on a regular basis spending in addition to journey and eating purchases. This is how the incomes charges stack up when you think about the Most well-liked Rewards bank card rewards bonus:

The power to get at the very least 2.625% on all purchases with this card (for high-tier Most well-liked Rewards members) is unbelievable. This return makes the Bank of America® Premium Rewards® credit card one of many best credit cards for everyday spending.

Associated: Not to be underestimated: Bank of America Premium Rewards credit card review

Financial institution of America Journey Rewards bank card

If you wish to keep away from paying credit card annual fees, you can go for the Bank of America Travel Rewards credit card. The cardboard earns 1.5 factors per greenback spent on all purchases. Factors could be redeemed to cowl journey bills at a charge of 1 cent per level.

By incomes 1.5 factors per greenback spent on every little thing plus a 75% Most well-liked Rewards bonus as a Platinum Honors (or increased) Most well-liked Rewards member, you successfully earn 2.625% money again towards journey purchases made with the cardboard. That is a incredible cash-back charge to earn on all spending — particularly for a card with no annual charge.

Associated: Bank of America Travel Rewards card: Simplicity for points beginners

Financial institution of America Limitless Money Rewards bank card

The Bank of America® Unlimited Cash Rewards credit card is nice for folk who do not need to maintain monitor of a number of bonus classes, however who nonetheless need to earn at a robust fastened charge on all their purchases. This no-annual-fee credit card earns limitless 1.5% cash-back rewards on all purchases with no restrict.

Platinum Honors and better members would get again 2.625% on all of your purchases — probably the greatest rewards charges any card provides for non-bonus on a regular basis purchases.

Associated: The best Bank of America cards of 2024

Financial institution of America Custom-made Money Rewards bank card

One other no-annual-fee card is the Bank of America® Customized Cash Rewards credit card. It earns 3% in one of many following classes of your selection every calendar month:

• Gasoline and EV charging stations
• On-line purchasing (together with cable, streaming, web and telephone providers)
• Eating
• Journey
• Drugstores/pharmacies
• Residence enchancment/furnishings

It additionally earns 2% again at grocery shops and wholesale golf equipment and 1% again on every little thing else. Simply word which you could solely earn 3% and a pair of% on as much as $2,500 in mixed purchases every quarter (then 1%).

So, in the event you’re at the very least a Platinum Honors member, you may earn as much as a whopping 5.25% money again in your 3% class. You’d additionally earn as much as 3.5% money again at grocery stores and wholesale golf equipment and 1.75% money again on all different purchases. That is fairly phenomenal for a no-annual-fee cash-back rewards card.

To redeem your Bank of America points with a card just like the Premium Rewards card, you may discover a “money” choice inside your on-line account. This lets you request a press release credit score or a money deposit into your Financial institution of America checking or financial savings account (or eligible Merrill Edge and Merrill Lynch accounts) at a charge of 1 cent per level. Be aware which you could additionally redeem right into a 529 Faculty Financial savings Plan.

Moreover, the Journey Rewards card earns a barely completely different rewards forex. You’ll be able to redeem them as a direct deposit into your Financial institution of America checking or financial savings account or as a credit score into an eligible Merrill Money Administration Account — however you may often get a paltry worth of 0.6 cents per level. You may solely obtain a worth of 1 cent per level when offsetting a travel-related transaction in your card.