New limited-time supply. The Financial institution of America Custom-made Money Rewards Credit score Card is the “3-2-1” money again rewards bank card within the Financial institution of America line-up. In case you are a Most well-liked Rewards consumer, you’ll be able to improve 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.
• Earn 1% money again on each buy, 2% at grocery shops and wholesale golf equipment, and three% in your alternative class as much as the primary $2,500 in mixed grocery/wholesale membership/alternative class purchases every quarter. In the course of the first yr, you’ll get an additional 3% money again on the selection class.
• Cardholders will be capable to select their 3% money again class from considered one of these 6 choices: fuel and EV charging stations; on-line purchasing, together with cable, web, telephone plans and streaming; eating; journey; drug shops and pharmacies; or residence enchancment and furnishings.. You’ll be able to change your class as soon as every calendar month in-app or on-line. Do nothing and it’ll keep the identical.
• Financial institution of America Most well-liked Rewards® members earn 25%-75% additional cash again on each buy. Nonetheless, Most well-liked Rewards bonuses should not utilized to the three% first-year bonus. Particulars beneath.
• 0% Introductory APR supply. See hyperlink for particulars.
• No annual price.

In the course of the present limited-time supply, the money again rewards in your particular alternative class are boosted by a further 3% for the primary yr. The 75% Most well-liked Rewards bonus for Platinum members doesn’t apply to the additional 3%, so the online money again throughout the first yr for Platinum members can be 3% * 1.75 + 3% = 8.25% money again in your Selection Class throughout the first yr, topic to the $2,500 cap per quarter which incorporates grocery/wholesale membership purchases. You’d additionally get 3.5% money again in your grocery/wholesale membership purchases throughout the first yr, once more topic to the $2,500 cap per quarter which incorporates any purchases in your Selection Class.

Theoretically, in case you solely used your card for the Selection Class and spent precisely $2,500 in that Selection Class per quarter, in a single yr you’ll rack up $825 in rewards from $10,000 in purchases. This is able to be separate from the one-time $200 new buyer money bonus.

Personally, I feel the “Online Shopping” class is essentially the most versatile. Per this web page: “On-line Purchasing class contains purchases made on-line by way of an internet site or a digital software (an app). Listed below are the offered examples of eligible retailers: Amazon, Walmart, Comcast, Etsy, Netflix, Nordstrom, Ticketmaster.

Most well-liked Rewards bonus fundamentals. The Most well-liked Rewards program is designed to rewards shoppers with a number of account and better belongings positioned 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 think about the choices. Financial institution of America’s rates of interest on money accounts are typically decrease than highest-available exterior banks (learn: practically zero), so transferring money over to qualify could end in incomes much less curiosity in your money deposits. Merrill Lynch advisory accounts additionally normally include administration charges. The candy spot is subsequently the Merrill Edge self-directed brokerage, the place you’ll be able to transfer over your current brokerage belongings like shares, mutual funds, and ETFs held elsewhere (Vanguard, Constancy, Schwab, and so on).

Up to now, transferring 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 practically all main on-line brokers supply commission-free trades anyway.

Personally, I moved over $100k of brokerage belongings 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 notice not everybody can have this stage of belongings to maneuver round, however in case you do then it’s value contemplating. Take into account that it’s going to take some time in your “3-month average combined balance” to succeed in the $100k stage and formally qualify for Platinum Honors. You would possibly grow 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. (In sure instances, if you open a brand new Merrill Edge account and new BofA Checking with a asset switch bonus supply, it’s possible you’ll be eligible to “fast track” to a better tier.)

Money Again Rewards after Most well-liked Rewards bonus (commonplace):

Recall that the essential construction is “1/2/3”; you get 1% money again on each buy, 2% at grocery shops and wholesale golf equipment and three% on alternative class for the primary $2,500 in mixed grocery/wholesale membership/fuel purchases every quarter (1/2/3). Right here’s how the bonuses work out:

• Platinum Honors: 1.75% money again on each buy, 3.5% at grocery shops and wholesale golf equipment, and 5.25% on alternative class for the primary $2,500 in mixed grocery/wholesale membership/fuel purchases every quarter.
• Platinum: 1.5% money again on each buy, 3% at grocery shops and wholesale golf equipment, and 4.5% on alternative class for the primary $2,500 in mixed grocery/wholesale membership/fuel purchases every quarter.
• Gold: 1.25% money again on each buy, 2.5% at grocery shops and wholesale golf equipment, and three.75% on alternative class for the primary $2,500 in mixed grocery/wholesale membership/fuel purchases every quarter.

Not all Financial institution of America client bank cards qualify for Most well-liked Rewards. Different playing cards of curiosity that do qualify are:

Backside line. The Financial institution of America Money Rewards Credit score Card is an “okay” money again rewards card with a 1/2/3 construction, however turns into an “excellent” rewards card if you’re keen to do cope with the added complexity of monitoring buy classes and can take full benefit of their Most well-liked Rewards program. For those who switch $100,000 of current brokerage belongings over to Merrill Edge, you’ll be able to qualify for the best Platinum Honors tier. This received’t be a superb choice for everybody, however one thing to concentrate on in case you can swing it.

In the course of the present limited-time supply, the Selection Class purchases are boosted by a further 3% for the primary yr. The 75% Most well-liked Rewards bonus for Platinum members doesn’t apply to the additional 3%, so the online money again throughout the first yr for Platinum members can be 3% * 1.75 + 3% = 8.25% money again in your Selection Class throughout the first yr, topic to the $2,500 buy cap per quarter which incorporates any grocery/wholesale membership purchases.