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Bank of America has entered the premium rewards credit card market (or that’s what they want you to think) and they’ve come up with a name for the product to emphasize this: Bank of America Premium Rewards Credit Card.
We learned about the product last month and it’s just now live for applications.
This does not appear to be a competitor to the Platinum Card by American Express. It’s not in the super premium card space.
Instead it’s a competitor to the Chase Sapphire Preferred Card and the Citi ThankYou Premier Card. And it isn’t as good unless you have $100,000 or more in assets on deposit with Bank of America.
Here’s what the Bank of America Premium Rewards credit card offers:
- Signup bonus: 50,000 points after $3000 spend within 3 months
- Earning: 2 points per dollar on travel and dining, 1.5x on everything else
- Annual fee: $95
- Benefits: $100 travel credit, $100 Global Entry or TSA Precheck credit, no foreign transaction fees
- Standard Visa Signature travel protections: trip delay, trip cancellation, baggage delay, lost luggage, emergency evacuation
Put another way, it’s a better signup bonus for the no annual fee Bank of America Travel Rewards card which earns 1.5x on everything.
That hardly compares to the Chase Sapphire Preferred which has a better bonus, a $0 annual fee the first year before becoming $95, and whose points transfer to a variety of airline and hotel loyalty programs.
You Won’t Likely Be Spending BofA Points for Asiana Business Class…
There’s solid value here for BofA investment clients though. Through Bank of America’s Preferred Rewards program earning on the card ramps up based on assets on deposit:
- $20,000-$49,999: 2.5x on travel and dining, 1.875x on other spend
- $50,000-$99,999: 3x on travel and dining, 2.25x on other spend
- $100,000+: 3.5x on travel and dining, 2.625x on other spend
That’s really just a no annual fee Bank of America Travel Rewards card with additional travel and dining earn and a travel credit to offset the annual fee.
Copyright: wolterk / 123RF Stock Photo
I still think that Chase Sapphire Preferred is a much better card than this new BofA effort, and it doesn’t even attempt to compete in the super premium space — without lounge access, hotel or airline elite status. Instead it’s a niche product for Bank of America investment customers. A decent enough card but in no way a game changer.