Signing up for credit cards through partner links earns us a commission. Here’s our full Advertising Policy.
A couple of months ago, I told you about a rumored premium credit card from Bank of America.
Emily and I don’t earn a commission on this card, but we’ll always keep you informed of new deals!
New Bank of America Premium Rewards credit card
The new Bank of America Premium Rewards comes with a 50,000 point sign-up bonus after spending $3,000 on purchases within the first 90 days of account opening. It also comes with:
- 2 points per $1 spent on travel and dining purchases
- 1.5 points per $1 spent on all other purchases
- $100 airline incidental credit (per calendar year)
- $100 Global Entry / TSA PreCheck credit
- NO foreign transaction fees
- $95 annual fee, NOT waived the first year
The points you earn are worth 1 cent each. You can redeem them for:
- Cash back (as a statement credit)
- Deposit to a Bank of America or Merrill Lynch account
- Travel purchases through the Bank of America Travel Center
- Gift cards
You’ll need to redeem at least 2,500 points ($25) at a time.
And because you receive the annual airline incidentals credit each calendar year, you’ll receive it TWICE before your 2nd annual fee is due. So you’ll receive the credit once when opening the card, and again in 2018. That means you’ll get a value of $605 for opening this card after you pay the annual fee ($500 sign-up bonus + $100 airline incidental credit in 2017 + $100 airline incidental credit in 2018 – $95 annual fee).
Is This Card Worth It?
This card was rumored to compete with top-notch credit cards like the Chase Sapphire Reserve and Citi Prestige. And while it does have some nice benefits, like a $100 airline incidental credit and Global Entry reimbursement, it definitely falls short.
For example, the Bank of America Premium Rewards does NOT grant you access to Priority Pass airport lounges. It also earns points that are worth just 1 cent each (less than both the Chase Sapphire Reserve and Citi Prestige when you redeem for certain travel). And you can NOT transfer points to valuable airline and hotel partners to increase the value of your points.
That said, there are plenty of reasons to get this card. Its $95 annual fee is MUCH less than these other premium cards. The annual $100 airline incidental credit, which you can use for things like checked baggage fees, in-flight entertainment, and in-flight food, more than makes up for it.
And if you’re a part of the Bank of America Preferred Rewards Program, you’ll get an improved earning rate with your card. Based on the amount of money you have in your Bank of America account, or have invested with Bank of America or Merrill Lynch, you’ll earn:
- Preferred Rewards Gold members with $20,000 to $50,000 in assets – 25% bonus
- Preferred Rewards Platinum members with $50,000 to $100,000 – 50% bonus
- Preferred Rewards Platinum Honors members with $100,000 or more – 75% bonus
So you could potentially earn 3.5 points per $1 on travel and dining, and 2.625 points per $1 on everything else (1.5 points for regular spending X 75% bonus for being Preferred Rewards Platinum member). That’s pretty great for non-bonus spending!
Note: This is NOT a good card for folks new to miles & points. Because applying for this card will affect your chances of being approved for other cards that offer bigger sign-up bonuses and earn more flexible points.
With the new Bank of America Premium Rewards card, you’ll earn 50,000 point sign-up bonus after spending $3,000 0n purchases within the first 90 days of account opening.
The card also earns 2X points on travel and dining. And comes with perks like Global Entry reimbursement and a $100 annual airline incidental credit.
This could be a great card for folks who are over Chase’s “5/24 rule”, or who are looking for a card with good benefits and points that are easy to redeem!
We don’t earn a commission on this card, but we’ll always give you all your options!