Bank of America® Customized Cash Rewards: Is This Credit Card Worth it?

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Most cashback credit cards have rigid, fixed earning tiers that don’t always adapt to the way your spending changes from month to month. The Bank of America® Customized Cash Rewards credit card flips this script by allowing you to shift your top 3% cashback category every month to match upcoming home renovations, seasonal travel or heavy online holiday shopping, among other purchase categories. Pair that flexibility with no annual fee, a temporary 6% introductory cashback rate in the first year and potential rewards bonuses of up to 75% for existing Bank of America customers enrolled in BofA Rewards™, and it becomes a standout choice for strategic spenders.

Below is an evaluation of the card’s features and drawbacks so you can decide whether it deserves a spot in your wallet.

Bank of America® Customized Cash Reward Overview

Here’s a breakdown of the Bank of America Customized Cash Rewards card features.

Earning Rates

The core benefit of the Bank of America Customized Cash Rewards card is its earning rates. Here’s an overview of what you’ll earn:

• 6% cash back in a category of your choice for the first year from account opening; 3% thereafter
• 2% cash back at grocery stores and wholesale clubs (6% and 2% categories are capped at $2,500 per quarter in combined purchases, 1% thereafter)
• 1% cash back on all other purchases

One of the standout perks of the Customized Cash Rewards card is its flexibility. There are few cards on the market that allow you to choose your own cashback categories, let alone allow you to change them up to once per month. Plus, it has a $0 annual fee.

As a Customized Cash Rewards cardholder, you’ll earn 6% cash back in the first year (3% thereafter) on one of the following preselected categories:

• Gas and EV charging stations
• Online shopping purchases, including cable, internet, phone plans and streaming
• Dining
• Travel
• Drug stores and pharmacies
• Home improvement and furnishings

These categories come with broad definitions, making it easy to earn cash back on a wide range of purchase types under each category. For example, the dining category isn’t limited to sit-down restaurants; it also includes takeout, fast food, caterers, bars and taverns. Likewise, the home improvement and furnishings category covers a wide range of purchase types, including home supply warehouse stores, lumber and building materials stores and general contractors. That means an air conditioning repair or a plumbing job could qualify for the 6% rate.

The ability to change this category once per month allows you to anticipate future purchases and know which categories to prioritize so you can maximize the return on every dollar spent. If you know you need HVAC work done in the upcoming month, for example, you can change your category accordingly to benefit from the 6% rate.

That said, it’s important to keep in mind that the 6% and 2% categories are capped at $2,500 in combined expenditure per quarter, which drops to 1% thereafter. This means your ability to continue earning 6% and 2% in their respective categories is limited, as you’ll likely exceed the quarterly spending cap, especially if you often charge your groceries to this card or make a large one-off purchase in the 6% category.

If you max out the shared $2,500 quarterly cap, you’ll earn $50 to $150 in cash back each quarter during the first year, depending on how your spending is split between the choice category and grocery stores or wholesale clubs. After the first year, that range drops to $50 to $75 per quarter. These amounts exclude any additional cash back earned through BofA Rewards.

Outside of these bonus categories, the Customized Cash Rewards card’s baseline rate of 1% cash back on non-bonus spending offers a weak rate of return compared to other no-annual-fee cards, such as the Chase Freedom Unlimited® or Citi Double Cash® Card.

Redemption Opportunities

As a no-annual-fee cashback card, the Customized Cash Rewards card comes with limited opportunities to redeem your rewards for outsized value. However, cash back can still form part of a valuable rewards strategy, particularly if you prioritize immediate rewards or simple fixed-value redemptions or are already earning more points than you can redeem from other travel rewards cards.

The Bank of America Customized Cash Rewards card allows you to redeem cash back for statement credits, deposit your earnings into an eligible Bank of America checking or savings account or into a Merrill 529 account (minimum transfer of $25 required), or redeem it for eligible purchases with Amazon or PayPal.

Loyalty Bonuses Offered Through the BofA Rewards™ Program

If you already have a banking relationship with Bank of America, the Customized Cash Rewards credit card can offer even more value. The BofA Rewards™ program, previously known as the Preferred Rewards program, offers loyalty bonuses to those who hold checking accounts with Bank of America. The loyalty bonus you receive depends on your combined balances across Bank of America and Merrill investment accounts and ranges from 10% to 75%.

Here’s an overview of the BofA Rewards program, the combined average daily balances required to qualify for each status level and the effective rewards rate on each spending category. Keep in mind that the additional 3% first-year choice-category bonus does not receive the relationship bonus.

If you already hold accounts with Bank of America, these additional loyalty bonuses can make the Customized Cash Rewards card worth having. However, it’s generally not worthwhile to open a new account with Bank of America and lock up your cash simply for the sake of unlocking bonus rewards rates (note: Merrill Lynch investments count towards qualifying balances).

Is The Bank of America® Customized Cash Rewards Credit Card Worth It?

When It Makes Sense

Here are some situations where the Customized Cash Rewards card could be a solid addition to your wallet:

• You already hold substantial deposits or investments with Bank of America or Merrill: The card delivers its maximum value when paired with the BofA Rewards™ program. Higher status levels boost the standard 3% earning rate up to between 3.3% and 5.25% and the 2% grocery/wholesale club rate up to between 2.2% and 3.5%, turning a standard rewards card into one of the highest-earning cashback options available.
• You want flexible, adaptable bonus spending categories: The ability to change your bonus category once per month allows you to align your rewards with planned expenses, such as home renovation projects, travel bookings or holiday shopping.
• You spend heavily on online shopping or wholesale clubs: Broad category definitions mean that everyday spending at wholesale clubs earns 2% cash back, while online purchases across various major retailers qualify for the choice category rate.
• You want a high introductory earning rate with no annual fee: The lucrative 6% choice category rate in the first year provides strong upfront returns on spending without charging an annual fee.

When It Doesn’t Make Sense

Here’s where it may not make sense to hold the Customized Cash Rewards card:

• Your quarterly spending in bonus categories significantly exceeds $2,500: Because the $2,500 spending cap applies to combined purchases in both your choice category and the 2% grocery/wholesale club category, high spenders will quickly find their return reduced to the baseline 1% rate.
• You want a hassle-free card for everyday non-bonus spending: Outside of the choice and 2% categories, the standard 1% cashback baseline rate underperforms compared to flat-rate cashback cards that offer 1.5% to 2% on all purchases without category management.
• You don’t have a banking relationship with Bank of America: Without the tiered loyalty bonuses, the card’s long-term 3% tier is average compared to competing cards that offer similar rates without quarterly caps or category selection.
• You prefer travel rewards or transferrable points: The card strictly earns cash back, offering no option to transfer rewards to airline or hotel partner programs for higher-value redemptions.

Bank of America® Customized Cash Rewards vs. Other Credit Cards

If the Bank of America Customized Cash Rewards card doesn’t fit your spending habits, here are some similar alternative cards that may offer better value:

• Chase Freedom Unlimited®: The Chase Freedom Unlimited offers a higher baseline rate of 1.5% cash back on general purchases, 3% on dining and drugstores, and 5% on travel booked through Chase Travel℠. While it lacks the customizable category selection of the Customized Cash Rewards card, it provides broader year-round coverage across everyday categories without a combined quarterly cap on spending.
• Citi Double Cash® Card: For simple, flat-rate cash back, the Citi Double Cash Card offers 2% cash back on all purchases (1% when you buy, plus 1% as you pay for those purchases) with no spending caps or category tracking required. It outperforms the Bank of America card on general, non-bonus spending, though it lacks the higher bonus category rates for specific purchase types.
• Wells Fargo Active Cash® Card: The Wells Fargo Active Cash earns unlimited 2% cash back on all purchases with no annual fee. If you want a simple, set-and-forget card for everyday spending, this is a strong option.
• Capital One Savor Cash Rewards Credit Card: Designed for everyday spending, this card earns unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores such as Walmart and Target). It’s a stronger option for ongoing dining and grocery spending since its earnings are not capped at $2,500 per quarter.

Final Thoughts

The Bank of America® Customized Cash Rewards credit card is a versatile, high-performing choice for cardholders who want control over where they earn their highest rewards. Its combination of adaptable choice categories, a lucrative 6% first-year introductory rate and broad category definitions makes it particularly valuable for strategy-minded spending. And for existing Bank of America and Merrill account holders who qualify for the BofA Rewards™ program, the tiered loyalty bonuses make this card one of the strongest cashback options on the market.

However, its long-term value is constrained by the combined $2,500 quarterly cap on bonus category purchases and a weak 1% baseline rate on non-bonus spending. Big spenders or those looking for a simple one-and-done card for all purchases may find better ongoing value in flat-rate cashback cards or dedicated multi-category alternatives.

Ultimately, if your spending fits within the quarterly limits—or if you already maintain significant balances with Bank of America—the Customized Cash Rewards card is well worth a spot in your wallet.