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Details on Bank of American’s new premium Visa product, the Bank of America Premium Rewards credit card, are now out and confirmed. The card will launch next month.
And despite the way the bank is pitching the card, and the Wall Street Journal is covering it, this does not appear to be a competitor to the Platinum Card by American Express or Chase Sapphire Reserve. 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.
The Bank of America Premium Rewards credit card will offer:
- 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
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
Again, 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.
I think Doctor of Credit‘stake is about right — they’re doing something to marginally improve the value proposition for high net worth investment clients hoping those clients don’t desert for better credit card products elsewhere.
Chase’s strategy for years has revolved around branches. The idea was your branch, with your accounts, would be the hub around which they’d generate other business. Of course as customers shift more towards mobile they’re even shuttering some branches. But the strategy remains — one of the bright spots with Sapphire Reserve customers is that they’ve been able to leverage an Ultimate Rewards points offer into new mortgage customers.
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, or even it seems a Global Entry or TSA fee credit. Instead it’s a niche product for Bank of America investment customers. A decent enough card but in no way a game changer.
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