New limited-time supply. The Financial institution of America Limitless Money Rewards Card is the simplest, easy, no-annual-fee bank card within the Financial institution of America line-up. In case you are a Most popular Rewards consumer, you possibly can enhance the money again earned by 25% to 75%. Proper, they’re additionally providing a particular supply throughout the first yr. Listed below are the highlights:

• New clients: $200 money rewards bonus after $1,000 in purchases within the first 90 days.
• 2% money again on purchases for the primary yr from account opening. After that, the usual construction is limitless 1.5% money again on all purchases. Redeem as an announcement credit score, deposit to BofA checking account, or deposit to Merrill brokerage account (together with 529).
• Financial institution of America Most popular Rewards® members earn 25%-75% more money again on each buy. Nonetheless, Most popular Rewards bonuses are usually not utilized to the 0.5% first-year bonus. Particulars under.
• 0% Introductory APR supply. See hyperlink for particulars.
• 3% overseas transaction payment.
• No annual payment.

In the course of the present limited-time supply, the money again rewards are boosted to 2% for the primary yr. The 75% Most popular Rewards bonus for Platinum members doesn’t apply to the additional 0.5%, so the online money again throughout the first yr for Platinum members could be 1.5% * 1.75 + 0.5% = 3.125% money again on every thing throughout the first yr. I’m wondering if that is in response the latest US Financial institution Well card adjustments… now that new candidates can’t get an analogous deal at 4% money again, this could be the very best deal on the town once more.

Most popular Rewards bonus fundamentals. The Most popular Rewards program is designed to rewards purchasers with a number of account and better property situated at Financial institution of America banking, Merrill Edge on-line brokerage, and Merrill Lynch funding accounts. Here’s a partial desk taken from their comparability chart (click on to enlarge):

Let’s contemplate the choices. Financial institution of America’s rates of interest on money accounts are typically decrease than highest-available exterior banks (learn: almost zero), so shifting money over to qualify could end in incomes much less curiosity in your money deposits. Merrill Lynch advisory accounts additionally often include administration charges. The candy spot is subsequently the Merrill Edge self-directed brokerage, the place you possibly can transfer over your present brokerage property like shares, mutual funds, and ETFs held elsewhere (Vanguard, Constancy, Schwab, and many others).

Up to now, shifting over to Merrill Edge on the Platinum and Platinum Plus ranges additionally led to 30 to 100 free on-line inventory trades each month. Quick ahead to now, and almost all main on-line brokers supply commission-free trades anyway.

Personally, I moved over $100k of brokerage property from Vanguard to Merrill Edge to qualify for Platinum Honors. You must ask Merrill Edge if they’ll cowl any ACAT switch charges concerned. I understand not everybody could have this degree of property to maneuver round, however should you do then it’s price contemplating. Understand that it would take some time in your “3-month average combined balance” to achieve the $100k degree and formally qualify for Platinum Honors. (In sure circumstances, once you open a brand new Merrill Edge account and new BofA Checking with a asset switch bonus supply, chances are you’ll be eligible to “fast track” to the next tier.) You would possibly turn out to be Gold first, then Platinum, and so forth. After that, the 25%-75% rewards bonus on bank card rewards kick in. When you attain a sure tier, BofA ensures that you’ll keep there for a yr it doesn’t matter what, even when your steadiness fluctuates.

Boosted money again percentages with Most popular Rewards. The usual construction is a flat 1.5% money again on all purchases. Right here’s how the numbers work out after you attain every tier:

• Platinum Honors: 2.625% money again on all purchases (75% bonus).
• Platinum: 2.25% money again on all purchases (50% bonus).
• Gold: 1.875% money again on all purchases (25% bonus).

I contemplate the bar set at 2% money again to be thought of a “great” rewards card. The Platinum and Platinum Honors ranges mean you can surpass that bar. Once more, not everybody could have this degree of property to maneuver round, and so this supply will not be obtainable to everybody. BofA is prepared to pay such excessive money again on the bank card as a result of they hope to make it again by way of their different merchandise (banking, brokerage, loans).

Their plan labored on me as a result of Financial institution of America has managed to persuade me to go from solely having a checking account with them to now additionally having a Merrill Edge brokerage account and a Financial institution of America bank card.

Comparability in opposition to different BofA bank cards. Not all Financial institution of America client bank cards qualify for Most popular Rewards. Different playing cards of curiosity that do qualify are:

Actually, these are all strong playing cards if you qualify for Most popular Rewards. I can see any considered one of them being a sensible choice for those who need comparatively easy rewards after organising a “relationship” with BofA.

My slight private favourite is the Journey Rewards bank card. The rewards construction on the Journey Rewards is just like the Limitless Money Rewards card together with the 1.5% again (as much as 2.62% with Most popular Rewards) incomes fee and no annual payment, besides that the rewards can solely be used to offset previous journey and eating purchases made on the cardboard prior to now 12 months. I’ve redeemed 1000’s of {dollars} in assertion credit and by no means run out of journey/eating purchases to offset. Their redemption course of is fast and simple. One distinction is that the Journey Rewards has no overseas transaction payment, whereas this Limitless Money Rewards card has a 3% overseas transaction payment. Collectively, this makes the Journey Rewards card an awesome “catch-all” card that I all the time have in my pockets. You might choose the Limitless Money Rewards card you probably have little or no journey/eating expenses.

The Premium Rewards card could also be higher should you can reliably make the most of the $100 annual Airline Incidentals credit score (seat upgrades, baggage charges, lounge charges) to offset the $95 annual payment, as then the elevated money again on journey/eating is all web revenue. The Personalized Money Rewards playing cards with its 3/2/1 construction can be tempting as a companion to the Journey/Limitless Money, however chances are you’ll choose different rewards card for particular classes.

Backside line. The Financial institution of America Limitless Money Rewards Credit score Card is an “okay” money again rewards card with a 1.5% money again on every thing construction, however turns into an “excellent” 2.62% money again rewards card should you can take full benefit of their Most popular Rewards program. For those who switch $100,000 of present brokerage property (may very well be ETFs or mutual funds) over to Merrill Edge, you possibly can qualify for the very best Platinum Honors tier. This gained’t be a very good choice for everybody, however one thing to pay attention to should you can swing it.

In the course of the present limited-time supply, the money again rewards are boosted to 2% for the primary yr. The 75% Most popular Rewards bonus for Platinum members doesn’t apply to the additional 0.5%, so the online money again throughout the first yr for Platinum members could be 1.5% * 1.75 + 0.5% = 3.12% money again on every thing throughout the first yr.