Bank of America Debuts Unlimited Cash Rewards Flat Rate Credit Card
When it comes to credit card rewards, there are plenty of consumers who are happy to earn points and miles that can be redeemed toward travel. However, there’s also a strong contingency that prefers the convenience that cashback credit cards have to offer. Even better, while category-based rewards cards may be attractive, a simple flat-rate rewards structure has long proven to be a winner as well. With that in mind, Bank of America has just introduced a new flat-rate cashback card that includes some bonus perks for select banking customers.
Serving as a cashback counterpart to B of A’s Travel Rewards card, the Unlimited Cash Rewards card offers 1.5% cashback on every purchase. What’s more, this reward rate increases for members of Bank of America’s Preferred Rewards program. In fact, those in the highest Preferred Rewards tier (Platinum Honors) earn a 75% bonus on their rewards, meaning that they’ll enjoy 2.62% cashback on every purchase they make with the card. Preferred Rewards tiers are based on the qualifying combined balances in customers’ Bank of America deposit and Merrill investment accounts, with Gold level benefits starting at a combined daily balance of $20,000, Platinum starting at $50,000, and Platinum Honors kicking in at $100,000.
Notably, the new Unlimited Cash Rewards card carries no annual fee. But, one thing it does have is a welcome bonus. Currently, new cardholders can earn a $200 cashback bonus after they spend $1,000 on the card within their first 90 days.
The Unlimited Cash Rewards card is the latest in a string of recently released flat-rate cashback cards. Earlier this month, Wells Fargo debuted its Active Cash card — the first new card in the bank’s refreshed line-up — earning unlimited 2% cashback on every purchase. Meanwhile, back in March, TD Bank introduced the TD Double Up Card, which earns customers 1% cashback on their purchases and an additional 1% cashback when they redeem earned funds into an eligible TD Bank Deposit Account.
In a press release announcing the Unlimited Cash Rewards card, Bank of America credit card executive Jason Gaughan explained, “We heard from our clients that they want earning rewards on their credit card to be uncomplicated.” Gaughan continued, “With our new Unlimited Cash Rewards card, we’ve made earning cash back on all purchases even easier, and are helping clients optimize their spending.”
With plenty of 2% flat rate cashback credit cards now available, Bank of America’s Unlimited Cash Rewards credit card may not be the best option on its own. Of course, it does have a superpower that’s unlocked via the bank’s Preferred Rewards program. That said, even in this case, customers would need to be Platinum members to best that 2% base (1.5% plus a 50% bonus works out to 2.25% back while the 25% boost that comes from Preferred Rewards Gold only brings the effective rewards rate to 1.875%). Nevertheless, for current or aspiring Preferred Rewards customers who want more flexibility with their rewards, the new Unlimited Cash Rewards card could be a wise addition to their wallet.
Also published on Medium.