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- If you have the Bank of America Cash Rewards credit card, you can earn 3% cash back in a category you choose each month.
- Categories include things like online shopping, gas, dining, and home improvement.
- You can also earn 2% back at grocery stores and wholesale clubs.
- If you don't already have the card, you can earn a$150 bonus when you spend $500 in the first three months.
One of the most popular rewards credit cards for Bank of America customers has a powerful new perk.
Starting January 2019, the Bank of America Cash Rewards credit card allows users to pick one bonus category to earn 3% cash back each month. Previously, bonus categories were fixed. The 3% categories include:
- Gas
- Online shopping
- Dining
- Travel
- Drugstores
- Home improvement and furnishing
In addition, cardholders will earn 2% cash back at grocery stores and wholesale clubs, and 1% on everything else. However, the 3% and 2% bonuses will only apply to the first $2,500 in purchases in those combined categories each quarter. After that, the earning rate will default to 1% until the following quarter.
Over all, this is a positive development for cardholders. Before the change, bonus categories were fixed, without any ability to choose.
While the $2,500 quarterly cap prevents you from taking advantage of the biggest purchases — for instance, choosing the home improvement category right before a big renovation project — the earning rate should be useful for most cardholders.
In addition, cardholders who have a Bank of America checking account and significant assets held with Bank of America or Merrill Lynch can get a 25-75% bonus on each category when they enroll in the Bank of America Preferred Rewards program.
Under that program, those with $20,000-$50,000 in their combined accounts will get 3.75% on the choice category and 2.5% on grocery stores and wholesale clubs; those with $50,000-$100,000 will earn 4.5% and 3% on those categories, respectively; and those with more than $100,000 will earn 5.25% and 3.5%, respectively.
If you don't already have the card and choose to apply for one, you can earn a sign-up bonus of $150 after you spend $500 in the first three months.