Key Points

• Bank of America Preferred Rewards multiplies your credit card earnings by 25% to 75% based on your banking relationship.
• Platinum Honors status transforms a 1.5% cash back card into 2.625% and a 3% category card into 5.25%.
• Qualifying requires maintaining three-month average balances of $20,000 to $100,000 across Bank of America accounts.

Introduction

Bank of America Preferred Rewards doesn't give you complicated redemption options or transfer partners. Instead, it does something simpler and more powerful—it multiplies the rewards you already earn across every single Bank of America credit card you hold.

Here's what makes this program exceptional: maintain qualifying balances in your Bank of America deposit and investment accounts, and your credit card rewards automatically increase by 25%, 50%, or 75%. That unlimited 1.5% cash back card becomes 2.625% on everything. The 3% category card jumps to 5.25%. No transfers, no booking through portals, no complexity.

Understanding the Three Tiers

Bank of America Preferred Rewards has three tiers based on your three-month combined average daily balance across eligible accounts:

Gold Tier ($20,000 minimum)

• 25% credit card rewards bonus
• Example: 1.5% becomes 1.875%

Platinum Tier ($50,000 minimum)

• 50% credit card rewards bonus
• Example: 1.5% becomes 2.25%

Platinum Honors ($100,000 minimum)

• 75% credit card rewards bonus
• Example: 1.5% becomes 2.625%

Your tier qualification uses a three-month rolling average, meaning you need to maintain the qualifying balance consistently—not just a one-time deposit.

How Your Earning Rates Transform

With Platinum Honors (75% bonus):

• 1.5% unlimited card → 2.625%
• 2% travel/dining → 3.5%
• 3% category bonus → 5.25%

That 5.25% earning rate on your chosen category with Platinum Honors status matches or beats virtually every category-specific card on the market.

Real-World Impact

Everyday Spending Example:You spend $2,000 monthly on general purchases using the Bank of America Unlimited Cash Rewards card.

• Without Preferred Rewards: $360/year
• Platinum Honors: $630/year
• Extra earnings: $270/year

Category Spending Example:You spend $1,000 monthly on gas using the Customized Cash Rewards card with gas as your 3% category.

• Without Preferred Rewards: $360/year
• Platinum Honors: $630/year
• Extra earnings: $270/year

Best Cards for Preferred Rewards

Bank of America Customized Cash Rewards

This no-annual-fee card becomes exceptional with Preferred Rewards. Choose your 3% category monthly (gas, online shopping, dining, travel, drug stores, or home improvement), and with Platinum Honors, you're earning 5.25% in that category.

The flexibility to change your bonus category monthly means you can optimize based on your actual spending. Planning a road trip? Switch to gas. Holiday shopping season? Flip to online shopping.

Apply for the Bank of America Customized Cash Rewards card.

Bank of America Unlimited Cash Rewards

A flat 1.5% cash back card becomes a 2.625% flat-rate card on everything with Platinum Honors—better than the Citi Double Cash and competitive with premium cards.

For someone spending $3,000 monthly across all categories, that's $945 annually compared to $540 without Preferred Rewards. The difference of $405 yearly comes from simply maintaining your banking relationship.

Get the Bank of America Unlimited Cash Rewards card.

Bank of America Premium Rewards

The Premium Rewards card earns 2 points per dollar on travel and dining. With Platinum Honors, that becomes 3.5x—rivaling premium travel cards like the Chase Sapphire Reserve, but the Premium Rewards card only charges a $95 annual fee.

You also get $100 in airline incidental credits and Global Entry/TSA PreCheck credit, making the effective annual fee nearly zero for frequent travelers.

Apply for the Bank of America Premium Rewards card.

How to Qualify

Eligible Account Types

Bank of America deposit accounts:

• Checking accounts
• Savings accounts
• Money market accounts
• Certificates of deposit (CDs)

Merrill investment accounts:

• Brokerage accounts
• IRAs
• 401(k) accounts
• Managed accounts

Not eligible:

• 529 college savings plans
• Health savings accounts (HSAs)

Strategic Qualification Approaches

Approach 1: Consolidated Banking

If you maintain substantial emergency funds or savings, consolidating these to Bank of America provides an easy path to qualification. Many households keep $50,000-$100,000 in liquid savings across multiple institutions—consolidating this to Bank of America unlocks Platinum or Platinum Honors status.

Approach 2: Investment Account Transfer

Merrill investment accounts count toward qualifying balances. If you maintain $100,000+ in a brokerage account at another institution, transferring to Merrill unlocks Platinum Honors status while keeping your money invested.

Approach 3: Combination Strategy

Most people qualify through a combination:

• $30,000 checking/savings for daily expenses
• $40,000 in Merrill brokerage
• $30,000 in CDs

This provides liquidity, investment growth, and guaranteed returns while reaching the $100,000 Platinum Honors threshold.

Real Case Studies

The Young Professional

Sarah maintains $60,000 across Bank of America accounts (Platinum status, 50% bonus). She holds the Customized Cash Rewards and Unlimited Cash Rewards cards.

Annual spending:

• $12,000 online shopping: $540 cash back
• $24,000 other purchases: $540 cash back
• Total: $1,080 annually

Without Preferred Rewards: $720—a difference of $360 per year.

The Established Household

The Martinez family maintains $120,000 across accounts (Platinum Honors, 75% bonus). They hold all three cards.

Annual spending:

• $18,000 travel/dining: $630 in rewards
• $6,000 gas: $315 in rewards
• $36,000 other: $945 in rewards
• Total: $1,890 annually

Without Preferred Rewards: $1,080—a difference of $810 per year.

Common Mistakes to Avoid

Not Understanding the Three-Month Average

You need to maintain balances for a full quarter before qualification. Plan accordingly when timing card applications or major purchases.

Forgetting Account Exclusions

529 plans and HSAs don't count toward qualifying balances. Verify which accounts actually contribute to your tier.

Not Maximizing Multiple Cards

The bonus applies to all eligible Bank of America credit cards. Holding multiple cards maximizes the benefit across different spending types.

How to Get Started

Step 1: Calculate Your Current Balances

Add up your balances across all institutions:

• Checking and savings accounts
• Emergency funds
• Investment accounts
• CDs

If you maintain $20,000+, consolidation makes sense.

Step 2: Choose Your Target Tier

• Gold ($20,000): Good starting point, 25% bonus
• Platinum ($50,000): Sweet spot for many, 50% bonus
• Platinum Honors ($100,000): Maximum value, 75% bonus

Step 3: Open Accounts and Transfer Funds

Start with a Bank of America checking account. If using investments, open a Merrill brokerage or IRA. Transfer funds systematically and monitor your three-month average.

Step 4: Apply for Credit Cards

Once enrolled in Preferred Rewards:

Start with: Bank of America Unlimited Cash Rewards for general spending

Add: Bank of America Customized Cash Rewards for category bonuses

Consider: Bank of America Premium Rewards if you have travel spending

Is It Worth It?

It's worth it if:

• You maintain $20,000+ across banking/investment accounts
• You value simple cash back over complex redemptions
• You spend heavily in everyday categories
• You want to consolidate banking for relationship benefits

It's not worth it if:

• You can't maintain the minimum qualifying balances
• You prioritize premium travel redemptions through transfer partners
• You prefer spreading banking across multiple institutions

For households that can comfortably maintain qualifying balances, the program delivers exceptional value without complexity. That Unlimited Cash Rewards card earning 2.625% on everything rivals premium cards with hefty annual fees.

Conclusion

Bank of America Preferred Rewards proves that simpler can be better. While other programs chase transfer partners and premium redemptions, Bank of America built something straightforward: maintain your banking relationship with them, and they'll automatically boost your credit card earnings by up to 75%.

For households that can comfortably maintain $50,000-$100,000 in combined balances, the program delivers exceptional value. The Customized Cash Rewards earning 5.25% in your chosen category beats virtually every category-specific card.

Start by evaluating your current banking relationship and spending patterns. If consolidating to Bank of America makes sense for your financial situation, you could be earning 25-75% more on every credit card purchase starting three months from now. Consider applying for the Bank of America Customized Cash Rewards or Bank of America Unlimited Cash Rewards card today.

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