How to maximize your Bank of America Customized Cash Rewards credit card

The Bank of America content was last updated on January 3, 2023.

The Bank of America® Customized Cash Rewards credit card is unique in that you can choose the category in which you earn the highest rate of rewards. This card also grants new cardholders a generous bonus offer, and there’s no annual fee.

Cardholders can also save money with 0 percent intro APR on purchases for 18 billing cycles, followed by a variable APR of 18.24 percent to 28.24 percent. This makes it ideal for earning rewards on your spending as well as for paying down large purchases without any interest for a limited time.

How to earn rewards

When you are approved for the Bank of America Customized Cash Rewards credit card, you can qualify for three different tiers of rewards based on your spending:

• 3 percent cash back in the category of your choice among gas, online shopping, dining, travel, drugstores, or home improvement and furnishings
• 2 percent cash back at grocery stores and wholesale clubs
• 1 percent cash back on all other purchases

Just keep in mind that while you can earn unlimited 1 percent back in rewards on your spending, the 3 percent and 2 percent bonus categories are capped at $2,500 in combined spending each quarter, after which you’ll earn 1 percent back.

Bank of America says you can change the 3 percent back category on your card once each calendar month through online banking or the Bank of America mobile app.

Also, remember that the rewards you earn on spending with this card come on top of the generous bonus offer. This initial offer lets you earn $200 in online cash rewards when you spend $1,000 on your card within 90 days of account opening.

How to earn more with Bank of America Preferred Rewards

If you want to rack up even more rewards, it can help to have a Bank of America deposit account or a Merrill investment account. Having either of these accounts and maintaining a minimum average daily balance can help you become eligible for the Bank of America Preferred Rewards program.

This program has three different tiers, each of which lets you earn an increasingly higher level of rewards on your spending. The following chart shows the average daily balance you need to maintain across your Bank of America deposit accounts and your Merrill investment accounts, as well as the percentage of bonus rewards you can earn.

As you can see, you have to keep quite a bit of money on deposit to qualify for this program. Then again, joining and earning the highest tier of bonus rewards may not be that difficult if you use a Merrill investment account for your retirement.

Either way, becoming eligible for the Bank of America Preferred Rewards program would enable you yo earn considerably more in rewards. You could earn up to 5.25 percent back in your chosen 3 percent category, 3.5 percent back at grocery stores and wholesale clubs and 1.75 percent back on all other purchases.

Maximizing rewards while you spend

There are several ways to maximize rewards with your Bank of America Customized Cash Rewards credit card, and it all starts with earning the initial bonus. When you get your card in the mail, you’ll want to make sure you spend at least $1,000 within 90 days of the date you were approved. Doing this will ensure you qualify for the $200 in online cash rewards.

Below is a list of additional strategies to maximize your rewards.

Move your savings to Bank of America or open a Merrill investment account

If you have a big emergency fund or you’re flexible on where you invest, consider moving your money to a Bank of America deposit account or a Merrill investment account. You can gain access to the Bank of America Preferred Rewards program if you have at least $20,000 across your accounts, and joining this program can net you an additional 25 percent to 75 percent in rewards.

Change your 3% categories based on your spending

Also, keep in mind that you can change your card’s 3 percent category every month using the Bank of America website or the mobile app. Doing so can help you align your bonus rewards with big purchases you need to make, such as a new sofa for your living room or a vacation.

During times when you don’t have any big expenses planned, you can set your 3 percent category to one you typically spend money on, such as dining or online shopping.

Use your card for everyday spending and bills

Finally, you’ll earn more rewards if you use your credit card for all your regular purchases and bills. This is true for regular spending, but it’s even more true for your card’s 3 percent category and each dollar you spend at grocery stores and wholesale clubs.

Best ways to redeem your rewards

Bank of America lets you redeem rewards in a few different ways, including:

• Cash rewards, statement credits or deposits made directly into a Bank of America checking or savings account, or for credit to an eligible account with Merrill
• Redemptions into a qualifying 529 savings plan with Merrill or for a check starting at $25
• Automatic redemptions into an eligible Bank of America or Merrill account starting at $25

While you can’t directly redeem rewards earned with this card for travel, merchandise or gift cards, keep in mind that statement credits let you accomplish the same thing. Simply charge anything you want to your credit card, then redeem your cash back to wipe all or part of the charge from your account.

Bottom line

Many cash back credit cards don’t allow you to choose your own bonus rewards categories or earn more cash as you save and invest. The Bank of America Customized Cash Rewards credit card stands out for its flexibility and the incentives it gives cardholders to be smart with their money. If you want something more than just a “set it and forget it” flat-rate cash back card, this may be the card for you.