Bank of America Premium Rewards credit card review: Full details
Bank of America Premium Rewards credit card overview
If you qualify for the Bank of America® Preferred Rewards® program, the Bank of America® Premium Rewards® credit card has the potential to be quite a lucrative card to use for everyday spending. For those who prefer other banks, there are better-earning travel cards available. Card rating*: ⭐⭐⭐½
* Card rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.
It took me a while to appreciate the value of Bank of America’s credit card offerings. Many have low or nonexistent annual fees, but they tend to lack the perks that I’ve always associated with my favorite cards. The rewards earned also don’t transfer to airline or hotel programs. Now that I have a better understanding of the Preferred Rewards banking program, the more I see the benefits of having a Bank of America credit card.
Despite having premium in its name, this card isn’t like other products with annual fees in the $400-$500 range and a ton of perks. Instead, this card has a lower $95 annual fee and a more modest selection of benefits. Still, it offers great flexibility in redeeming points and can produce outstanding earning rates if you can maximize Bank of America’s Preferred Rewards banking program. We recommend a credit score of at least 670 for this card.
Bank of America Premium Rewards credit card pros and cons
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Bank of America Premium Rewards credit card welcome bonus
With the Premium Rewards card, you’ll receive 60,000 bonus points after spending $4,000 on purchases in the first 90 days of account opening. These points have a fixed value of 1 cent each, meaning this bonus is worth $600. This is far from the most lucrative bonus out there, but $600 can go a long way toward airfare, hotel costs or anything in between.
While Bank of America has no published restrictions that apply specifically to earning welcome bonuses, remember that it does have the infamous 2/3/4 rule regarding card applications. You can only get approved for two Bank of America cards in a two-month period, three cards in a 12-month period and four cards in a 24-month period.
Remember that your entire credit profile will be considered, so approval is not guaranteed, even if you fall under these numbers. Lastly, there are no restrictions in the application terms saying that you cannot get this bonus if you previously had the card or that you must wait a certain amount of time before applying again.
Related: Here are the best credit card welcome offers
Bank of America Premium Rewards credit card benefits
While the Premium Rewards card doesn’t hold a candle to top-tier cards like The Platinum Card® from American Express, it does come with nice perks for its low annual fee. Notable perks on this card include:
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- Up to $100 in statement credits annually for qualifying airline incidentals
- Up to $100 statement credit for TSA PreCheck or Global Entry every four years
- Trip delay, interruption and cancellation insurance
- Purchase protections
- Auto rental collision damage waiver
This is a solid set of benefits for a card with a $95 annual fee. As long as you maximize the annual airline incidentals credit every year, you’ll get positive value out of this card. Cardholders also get access to certain Visa Signature® benefits, such as access to the Visa Signature Luxury Hotel Collection.
Related: 9 valuable travel perks that you can get with a credit card
Earning points on the Bank of America Premium Rewards credit card
With the Premium Rewards card, you’re earning 2 points per dollar spent on travel and dining and 1.5 points per dollar on everything else. Travel and dining are defined broadly, meaning there are a lot of expenses that can qualify for double points.
The real value here is in the Preferred Rewards program. If you are a member of the Preferred Rewards program, you can earn 25-75% more points on every purchase, up to an impressive 2.625 points per dollar on non-bonus spending. That’s higher than any flat-rate card out there.
Related: Why you should get a fixed-rate rewards credit card
Redeeming points on the Bank of America Premium Rewards credit card
Another thing I like about the Premium Rewards card is that it causes zero stress and consumes very little time. You don’t need to jump through hoops to find award availability, and you don’t have to go to a specific portal if you want to use your points to pay for your gym membership.
Since points are worth the same no matter what you redeem them for, you’re not penalized for redeeming them for cash back.
There are a few ways to redeem points:
- Cash back: When your points balance is 2,500 points or more, you can receive cash back as a statement credit or deposit it into an eligible Bank of America checking or savings, Merrill or 529 college savings account.
- Travel purchases: You can book flights directly through the Bank of America travel portal. This is a good way to redeem points because you can still earn award miles and elite credits by flying on a paid ticket (buying directly from the airline may be better, though, because you may get a lower fare class when booking through a portal).
- Gift cards: A final option allows converting points into gift cards at popular merchants like Amazon, Whole Foods and Starbucks. I advise against this. It’s better to purchase gift cards with your credit card outright because you would get purchase protection benefits that way.
You can also convert your points to cash and put them straight into a 529 college savings account. This is an impressive option that can be an excellent way to prepare for expensive tuition costs for yourself or someone in your family.
And if you’re solely focused on travel rewards, this card can cover travel expenses you can’t redeem miles for, like offsetting surcharges on an award ticket or amazing experiences on the ground.
Hearing that points are worth 1 cent each may initially seem disappointing, especially compared to what other points and miles are worth. However, the simplicity of not jumping through hoops or stressing about “maximum redemption value” can be a strong point here.
Related: Getting started with points, miles and credit cards to travel
Which cards compete with the Bank of America Premium Rewards credit card?
The best cards to compare to the Premium Rewards card are cards with similar annual fees. Let’s take a look at a few:
- If you like Chase: The Chase Sapphire Preferred® Card has a $95 annual fee. It offsets that fee with a complimentary DashPass membership (activate by Dec. 31) and an up to $50 statement credit for hotel stays booked through Chase Travel℠. The card earns 5 points per dollar on travel booked through Chase Travel, 3 points on dining and online grocery purchases (excluding Walmart, Target and wholesale clubs), 2 points on all other travel and 1 point on all other purchases. To learn more, read our full review of the Chase Sapphire Preferred.
- If you like Citi: The Citi Strata Premier℠ Card (see rates and fees) also comes with a $95 annual fee, offset by a $100 discount on an eligible hotel stay of $500 or more when booked through Citi Travel. The Strata Premier earns 10 points per dollar on hotel, car rental and attraction bookings made through Citi Travel, 3 points on air travel, other hotel purchases, restaurants, supermarkets, gas stations and electric vehicle charging stations and 1 point per dollar on all other purchases. To learn more, read our full review of the Citi Strata Premier.
- If you like American Express: The Blue Cash Preferred® Card from American Express has an introductory annual fee of $0 (then $95 per year, see rates and fees). The main benefit of this card is up to $84 in statement credits every calendar year (up to $7 each month) for an eligible Disney Bundle charge of $9.99 or more each month (enrollment required; subject to auto-renewal). This card earns 6% cash back (in the form of reward dollars that can be redeemed as a statement credit) at U.S. supermarkets (on the first $6,000 per year, then 1%) and on select U.S. streaming subscriptions, 3% cash back on transit and gas and 1% cash back on all other purchases. To learn more, read our full review of the Amex Blue Cash Preferred.
For additional options, take a look at our picks for the best travel cards.
Related: Why the Citi Strata Premier and Rewards+ cards are a great pair
Is the Bank of America Premium Rewards credit card worth it?
If transfer partners aren’t a big deal to you, I recommend considering the Premium Rewards card. This is especially true if you’re a Preferred Rewards member and can get additional points for every dollar spent. Either way, this card offers solid perks for its annual fee.
Bottom line
The Bank of America Premium Rewards card is worth considering if you want a mid-tier card with attractive benefits. While its lack of transfer partners will be a turn-off for many, it still offers good redemption options. As always, consider it against other mid-tier cards to make sure it’s the right choice for you.
Apply here: Bank of America Premium Rewards Card
Related: Bank of America Travel Rewards credit card review
For rates and fees of the Amex Blue Cash Preferred, click here.
