BofA Rewards™ Program Explained

All information about the Bank of America® Premium Rewards® Elite credit card, Bank of America® Customized Cash Rewards Credit Card for Students, Bank of America® Travel Rewards for Students, Bank of America® Unlimited Cash Rewards for Students, Bank of America® Customized Cash Rewards Secured credit card, Bank of America® Unlimited Cash Rewards Secured credit card, Bank of America® Travel Rewards Secured credit card, Susan G. Komen® Customized Cash Rewards credit card and Norwegian Cruise Line® World Mastercard® credit card has been collected independently by 10xTravel.

For years, Bank of America’s credit card portfolio has rewarded customers who consolidate their personal banking and investment accounts.

The program was recently restructured into BofA Rewards™, replacing the Preferred Rewards program. With renewed status tiers and expanded access, it’s now easier to qualify for bonus cashback rates. However, balance requirements for the highest cashback bonus rates remain high.

When evaluating the BofA Rewards program, look beyond credit card multipliers and consider how much interest you could lose by keeping cash in low-yield deposit accounts vs. alternatives.

The program’s basic strategy hasn’t changed: keep your personal checking, savings or investment balances with Bank of America or Merrill, move up the tier ladder, and unlock a 10% to 75% boost to the rewards earned on eligible credit card purchases.

If you’re looking for a simple, cash-focused system that turns everyday spending into direct cost savings for your household, BofA Rewards looks tempting. But as always with relationship banking, the big question is whether those elevated cashback rates are lucrative enough to justify tying up your hard-earned money in a low-yield bank account.

Below is a detailed breakdown of the BofA Rewards program, examining how its tier structure functions, which cards qualify and how to evaluate whether climbing the status ladder makes financial sense for your capital and wider card strategy.

How to Join the BofA Rewards Program

Joining the BofA Rewards program is straightforward and free. Unlike previous iterations that required significant upfront capital, the entry threshold is accessible to anyone with an eligible account.

To enroll, you must hold an open, qualifying Bank of America personal checking account. Your rewards tier is then determined by the combined balances of eligible accounts, including:

• Deposit accounts such as checking, Bank of America Advantage Banking, savings, money market savings, certificate of deposit and IRA accounts
• Merrill investment accounts, such as the Cash Management Account
• Merrill 529 college savings accounts that appear on your statement
• Revocable grantor trust accounts

When you enroll in BofA Rewards, Bank of America assigns your initial tier based on your combined three-month average balance across qualifying accounts. During the first 30 calendar days after your first enrollment, you can qualify for a higher tier if your combined end-of-day collected balance stays above the required threshold for at least three business days. After that, Bank of America reviews your combined three-month average balance on the third business day of each month. Once you qualify, you’ll be upgraded within three business days. New tier benefits may take up to 30 days to become effective.

BofA Rewards Program Tiers: What You Need to Know

The BofA Rewards program rewards personal banking relationships by offering account perks, fee waivers, loan discounts and credit card reward boosts based on your combined account balances. For points, miles and cashback enthusiasts, the credit card rewards boosts are among the most lucrative status perks.

Status levels are calculated using a combined average balance across eligible personal accounts. If you’re new to the program, Bank of America will monitor your account balances every day for the first 30 days. After that, it will review your combined average daily balance on a monthly basis.

Once you qualify for a specific tier, your status is maintained for a full year. If your qualifying balances fall below the threshold during your annual review, Bank of America provides a three-month grace period, giving you time to restore your balances before your tier status drops.

Member Tier

The entry-level Member tier requires no minimum balance; holding an eligible personal checking account is sufficient to qualify.

• Required combined balance: $0 to $29,999
• Credit card reward boost: 10% bonus on rewards earned
• Additional benefits: Cashback deals on popular brands, advanced identity theft monitoring, a $100 discount on home mortgage origination fees and a 0.1% rate reduction on auto loans

Preferred Plus Tier

The Preferred Plus tier is the next level of status and the first tier that requires a balance to qualify.

• Required combined balance: $30,000 to $99,999
• Credit card reward boost: 25% bonus on rewards earned
• Additional benefits: Waived monthly maintenance fees on checking and savings accounts, waived fees on inbound wire transfers, one free non-Bank of America domestic ATM withdrawal per statement cycle, 0.25% discount on auto loans, $300 off mortgage origination fees, HELOC interest rate discount of 0.25% and a 0.1% program fee discount on the Merrill Guided Investing program. Terms apply.

Preferred Honors Tier

The Preferred Honors tier is a popular target for many personal finance enthusiasts seeking higher cashback rates.

• Required combined balance: $100,000 to $999,999
• Credit card reward boost: 50% bonus on rewards earned
• Additional benefits: Full domestic ATM fee waivers, up to $96 in annual subscription credits for select streaming and media subscriptions (enrollment required), lifestyle benefits, 0.35% discount on auto loans, $600 off mortgage origination fees, HELOC interest rate discount of 0.375% and 0.15% discount on the Merrill Guided Investing program. Terms apply.

Premier Tier

The flagship Premier tier caters to high-net-worth individuals, unlocking top-tier multipliers and lifestyle perks.

• Required combined balance: $1,000,000 or more
• Credit card reward boost: 75% bonus on rewards earned
• Additional benefits: Global ATM fee waivers, foreign transaction fee waivers on debit card purchases, up to $180 in annual subscription credits for select streaming and media subscriptions (enrollment required), dedicated client service, 0.5% discount on auto loans, 0.375% discount on mortgage rates, HELOC interest rate discount of 0.625% and curated lifestyle offers. Terms apply.

Which Cards Belong to the BofA Rewards Program?

The BofA Rewards credit card boost applies to eligible Bank of America consumer credit cards, including select cashback, travel and secured products. Once you qualify for a BofA rewards tier, the applicable bonus is automatically applied to eligible credit card purchases.

Eligible consumer credit cards include:

• Bank of America® Customized Cash Rewards credit card
• Bank of America® Unlimited Cash Rewards credit card
• Bank of America® Travel Rewards credit card
• Bank of America® Premium Rewards® credit card
• Bank of America® Premium Rewards® Elite credit card
• Bank of America® Customized Cash Rewards Credit Card for Students
• Bank of America® Travel Rewards for Students
• Bank of America® Unlimited Cash Rewards for Students
• Bank of America® Customized Cash Rewards Secured credit card
• Bank of America® Unlimited Cash Rewards Secured credit card
• Bank of America® Travel Rewards Secured credit card
• Susan G. Komen® Customized Cash Rewards credit card
• Norwegian Cruise Line® World Mastercard® credit card

Is the BofA Rewards Program Worth It?

If you already bank with Bank of America or hold investments with Merrill, joining BofA Rewards is a no-brainer. It costs nothing to join, and it gives you an immediate, effortless boost to the cash back you earn every time you swipe your card.

However, if you don’t already bank with Bank of America, the decision gets a bit more nuanced. Moving $30,000 or $100,000 into standard Bank of America savings accounts, which pay near 0.01% annual percentage yield (APY), could mean giving up hundreds or thousands of dollars in interest from a high-yield savings account (HYSA).

The trick to making BofA Rewards worth your while without sacrificing interest earnings is to use Merrill Edge. Because stock portfolios, low-cost index funds and Treasuries held in a self-directed Merrill investment account count toward your qualifying balance, you can unlock top-tier status while still earning market returns. When set up this way, BofA Rewards becomes one of the highest-yielding cashback programs on the market.

Earning Example: Bank of America® Customized Cash Rewards credit card

To see how these status tiers translate into real-world cash back, let’s look at one of the program’s flagship cards: the Bank of America® Customized Cash Rewards credit card.

Before applying any BofA Rewards bonuses, this $0-annual-fee card lets you earn 3% cash back in a category of your choice (including but not limited to online shopping, dining, gas/EV charging and travel) and 2% cash back at grocery stores and wholesale clubs, capped at $2,500 in combined bonus spending each quarter (1% thereafter). Everything else earns a standard 1% cash back.

During your first year, you can earn an additional 3% cash back on top of the standard 3%, totaling up to 6%. However, BofA Rewards loyalty bonuses apply only to the standard 3% rate, not the additional promotional bonus.

Here’s how earning rates climb as you move up the BofA Rewards tiers:

If you spend $2,500 per quarter ($10,000 per year) on purchases in your 3% choice category, you’ll earn $300 in annual cash back at the standard rate before any BofA Rewards bonuses are applied.
At the Member tier, that increases to $330 per year, rising to $375 at Preferred Plus and $450 at Preferred Honors. Reach the Premier level, and that same $10,000 in spend generates $525 in cash back, offering a 5.25% return on everyday spending.

The Potential Cost of Moving Funds to Bank of America

Before rushing to move your money, it’s important to consider how much interest you could lose by doing so. Credit card rewards are great, but they should never come at the expense of losing interest on your hard-earned cash.

Bank of America’s standard savings accounts typically yield around 0.01% APY. In contrast, competitive HYSAs or short-term United States government securities, known as Treasury bills, can offer up to 4% APY.

If you put $100,000 in cash in a standard Bank of America savings account purely to reach Preferred Honors status, you could be sacrificing roughly $4,000 per year in interest to earn an extra few hundred dollars in credit card rewards. That’s a net loss.

The Merrill Edge Workaround

This is where smart financial planning comes in. Bank of America explicitly allows balances held in Merrill investment accounts to count toward your BofA Rewards status thresholds.

By transferring an existing IRA, taxable brokerage account or S&P 500 index fund portfolio into a self-directed Merrill Edge account, your capital stays invested and continues to earn market returns. At the same time, those investments count toward your BofA Rewards tier, giving you top-tier credit card boosts without losing a single dollar in interest.

To see how this works, let’s compare three financial strategies using the Preferred Honors tier ($100,000 combined balance requirement) and a hypothetical household spending $20,000 annually across two Bank of America credit cards:

• Annual Bank of America card spend:
  1. $10,000 on a Customized Cash Rewards card (maxing out the $2,500 quarterly cap)
  2. $10,000 on an Unlimited Cash Rewards card (flat 1.5% rate for non-category spend)
• Baseline cash back (with Member status): $495 per year ($330 from Choice + $165 from Unlimited Cash)
• Preferred Honors cash back (50% boost): $675 per year ($450 from Choice + $225 from Unlimited Cash)
• Incremental cashback value: +$180 per year ($675 less $495)

Scenario #1: Put $100K in a Checking or Savings Account

In this scenario, our example household would move $100,000 of cash out of a HYSA, paying a market rate of 4% APY, and place it in a standard Bank of America savings account purely to reach Preferred Honors status. Because standard Bank of America savings accounts pay around 0.01% APY, the lost interest would erase any additional cashback gains.

As you can see, leaving $100,000 of liquid cash in a low-interest bank account to earn $180 in extra credit card rewards results in a $3,810 net financial loss. In this case, the potential loss of interest outweighs the benefits of qualifying for Preferred Honors.

Scenario #2: Buy $100,000 of Treasury Bills or Money Market Funds

Just because you want to hold $100,000 in cash doesn’t mean you need to leave it in a low-APY checking or savings account. Inside a self-directed Merrill Edge brokerage account, you can use that $100,000 to purchase short-term U.S. Treasury bills or money market funds (MMF), often yielding around 4% APY. These assets count toward your Preferred Honors tier while offering a much higher yield.

Moving cash into Treasuries or MMFs inside Merrill Edge lets you earn high-yield interest and capture the $180 cashback boost, turning a loss into a net gain. If this is your emergency fund, you can keep cash available while earning higher cashback rates on your card spending.

Scenario #3: Move $100,000 of Existing Investments to Merrill

If you already have $100,000 invested in an index fund at another brokerage, you can transfer your shares directly into Merrill Edge without selling them. This is known as an in-kind transfer and generally won’t trigger a taxable event.

Because Merrill offers $0 commission trades on equities, your investment strategy, expense ratios and market performance should remain unchanged, provided you retain the same investments.

Moving index funds you already own into Merrill Edge could help you qualify for Preferred Honors status without changing your investment strategy. It adds no drag to your portfolio’s investment returns, making the $180 credit card rewards a welcome benefit.

Takeaways: When Does the BofA Rewards Program Make Sense?

To simplify your decision, here’s a quick breakdown of when climbing the BofA Rewards ladder is worth your time and when you should skip it.

When BofA Rewards Makes Sense

Here’s when the BofA Rewards program can make sense as a strategy:

• You hold $30,000 or more in existing retirement or taxable investments: If you already hold exchange-traded funds, equities or mutual funds elsewhere, transferring eligible investments to a self-directed Merrill Edge account could help you qualify for a higher BofA Rewards tier without changing your investment strategy. Keep in mind that purchases at grocery stores and wholesale clubs also count toward the quarterly cap.
• You want a simple cashback setup: If you dislike tracking airline transfer partners, award availability or travel credits, an Unlimited Cash Rewards credit card paired with Preferred Honors gives you a flat 2.25% cash back on everything with no annual fee.
• You spend within the Customized Cash’s quarterly spending caps: If you reliably spend $2,500 per quarter on online shopping, travel or dining in your chosen category, you could earn 4.5% to 5.25% cash back (assuming you have Preferred Honors or Premier status).

When BofA Rewards Doesn’t Make Sense

Here’s when to avoid the BofA Rewards program:

• You intend to keep $30,000 or more in a Bank of America checking or savings account: Leaving tens of thousands in cash in an account earning just 0.01% APY could cost you more in lost interest than in additional credit card rewards.
• You regularly exceed the Customized Cash’s $2,500 quarterly cap: If your combined choice-category, grocery store and wholesale club spending on the Customized Cash exceeds $2,500 per quarter, purchases above that cap earn 1.1%–1.75% cash back (assuming you’re enrolled in BofA Rewards), making uncapped flat-rate cards potentially more attractive.
• You prefer award travel over cash back: If you value transferring points to airlines for business-class seats, rewards programs such as Chase Ultimate Rewards or American Express Membership Rewards may offer better value, depending on how you redeem your points.
• You don’t want to manage a Merrill account: If you prefer keeping all your investments with a single brokerage and don’t want the hassle of transferring them, forced consolidation isn’t worth the trouble for a few hundred dollars in cash back.

Final Thoughts

The BofA Rewards program offers one of the most straightforward cashback setups in personal finance. For consumers who prefer simple cash back over juggling airline points and award availability, getting a 10% to 75% boost on everyday spending is a significant benefit.

If you plan to leave large cash deposits sitting in low-interest savings accounts, the math simply doesn’t work out, as the interest you give up could outweigh the extra cash back you earn. However, if you use Merrill Edge to hold your investments or money market funds, BofA Rewards can offer substantial benefits without changing your investment strategy. It lets your money work hard for you in the market while giving your everyday spending an effortless boost.