Bank of America^® Premium Rewards^® credit card Review

The Bank of America^® Premium Rewards^® credit card is an amazing card if you have big deposits with Bank of America or Merrill Lynch via Bank of America’s Preferred Rewards® program as those cardholders get a boosted rewards rate. Plus, the card offers numerous traveler protections that are normally found on high-annual-fee travel rewards cards.

Depending on your level in Bank of America’s Preferred Rewards® program, you can earn up to 3.5 points per dollar spent on travel and dining purchases and 2.625 points per dollar spent on all other purchases. There isn’t another credit card that offers that level of rewards with an uncapped potential.

Plus, cardholders have the option of redeeming their rewards as deposits into a Bank of America checking or savings account, or as a credit to eligible Merrill Edge and Merrill Lynch accounts (including 529 accounts).

• Statement credits

  Despite a $95 annual fee, the benefits of the Bank of America^® Premium Rewards^® credit card more than cover it. You get up to a $100 yearly airline credit — automatically applied to your card statement — to cover things like seat upgrades, baggage fees, in-flight services and airline lounge fees. On top of that, you get up to $100 to cover enrollment fees for TSA Precheck or Global Entry every four years.

• Sign-up bonus

  New cardholders can earn 60,000 online bonus points - a $600 value - after you make at least $4,000 in purchases in the first 90 days of account opening.

• Enhanced rewards

  Bank of America’s Preferred Rewards® members can also boost their points rewards, earning between a 25% to 75% bonus on every purchase. This translates up to 3.5 points per $1 on travel and dining purchases and up to 2.62 points per $1 on all other purchases.  And your points don’t expire.

• Rewards redemption options

  Cardholders also get flexibility with how they redeem points. It can be cash back as a statement credit or deposited into eligible Bank of America^® or Merrill Lynch^® accounts, including checking, savings and 529 college savings plans. Cash back can also be redeemed for buy travel, including air, car rentals and hotels, through the Bank of America Travel Center or redeemed for gift cards.

• Extensive travel benefits

  Bank of America^® Premium Rewards^® credit card cardholders are covered when it comes to travel mishaps, such as lost luggage, trip delays, medical emergencies and trip cancellations.

• Annual fee

  The Bank of America^® Premium Rewards^® credit card comes with a $95 annual fee.

• No loyalty program transfer partners

  You can’t transfer your points to airline or hotel loyalty programs. Instead, you’re moved to the Bank of America’s Travel Center website for purchases, although you do get more value for your points when booking on the site.

• No intro APR offers

  The Bank of America^® Premium Rewards^® credit card does not offer an intro APR deal for either purchases or balance transfers.  If you do choose to transfer a balance to the Bank of America^® Premium Rewards^® credit card, you will incur a balance transfer fee of 4% of the amount of each transaction After, an APR of 20.74% - 28.74% Variable APR on balance transfers will apply.

Compare it to the Capital One Venture Rewards Credit Card

 

The Capital One Venture Rewards Credit Card has a similar annual fee of $95. 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening. You also earn 2 Miles per dollar on every purchase, every day; 5 Miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Travel.

Both cards allow you to use your points to fly any airline or stay at any hotel with no blackout dates. Your miles won’t expire for the life of the account and there’s no limit to how many you can earn. And both cards charge foreign exchange fees of none.

The Capital One Venture Rewards Credit Card also offers auto rental collision damage waivers, travel accident insurance, Visa Concierge service, and extended warranty protection on eligible items purchased with your card. But it doesn’t offer Bank of America^® Premium Rewards^® credit card benefits, like reimbursement for trip delay/cancellation/interruption or baggage delay and return protection when you’re dissatisfied with an item bought with the card.

The trick to getting the best bang for the buck from the Bank of America^® Premium Rewards^® credit card is to use it for travel and dining purchases to get the higher rewards rate. Leverage those points further by enrolling in Bank of America’s Premium Rewards program and get between a 25% and 75% point bonus.

Take full advantage of the Bank of America^® Premium Rewards^® credit card’s $100 yearly airline credit and the $100 credit for TSA Precheck or Global Entry enrollment fees, either of which can cover the card’s $95 annual fee.

In terms of deciding whether this card is best for you, you should consider if you can meet the minimum spending requirement to get the bonus and where you generally spend money on day-to-day purchases.

If you have big travel aspirations and want a credit card with points you can redeem directly into airline miles, you may want to take a look at a card like the Chase Sapphire Preferred^® Card ($95 annual fee), which will offer you many more options.

However, if you primarily travel in economy and have little flexibility with your dates, then a card that lets you use your points like cash for travel, the Bank of America^® Premium Rewards^® credit card will do the trick.