Today, we’re diving into one of the most powerful and often misunderstood credit card setups in the personal finance world. On its own, the Bank of America® Premium Rewards® credit card looks like a solid, but maybe not spectacular, choice. But what if I told you that by pairing it with a free, hidden program, you can turn this card into a cash back beast, earning up to 2.625% on every single purchase you make?
That’s right. For those of you who want to simplify your wallet and earn a premium cash back rate on everything without worrying about rotating categories or spending caps, this is a combination you absolutely need to know about. We’re talking about the Bank of America Premium Rewards credit card and the magic of the Preferred Rewards program. Let’s break down exactly why this combination is so powerful.
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Learn More: Open a Bank of America Premium Rewards and receive 60,000 bonus points – a $600 value – after you make at least $4,000 in purchases the first 90 days of account opening.
The Bank of America Premium Rewards Card On Its Own
First, let’s look at the card itself, without any of the extra bells and whistles. The Bank of America Premium Rewards card is a travel and dining card that competes with mid-tier travel cards like the Chase Sapphire Preferred or Capital One Venture. It comes with a respectable annual fee of $95, which is easily offset by its benefits.
Rewards
It earns unlimited 2 points per dollar on all travel and dining purchases. Everything else, all of your general spending, earns an unlimited 1.5 points per dollar. Now, for the purposes of this post, one point equals one cent, so you can think of this as 2% cash back on travel and dining, and 1.5% cash back on everything else. That’s a good, simple rewards structure.
Annual Credits
This is where the card starts to shine. It offers up to a $100 annual credit for airline incidentals, which can be used for things like baggage fees, seat upgrades, or in-flight purchases. It also gives you up to a $100 credit for a TSA PreCheck or Global Entry application fee every four years. If you fly even once or twice a year, that $100 airline credit basically wipes out the annual fee on its own.
Other Perks
The card also comes with standard travel protections like trip delay reimbursement, lost baggage coverage, and no foreign transaction fees, making it a solid choice for international travel.
So, for a $95 fee, you’re getting a card that gives you 2% back on travel and dining, 1.5% back everywhere else, and two very generous credits that often outweigh the fee. It’s a great card… but it’s not “elite” yet. Not until you combine it with the “secret” program.
The Preferred Rewards Program
The real power of this card comes from the Bank of America Preferred Rewards® program. This is a free loyalty program for Bank of America and Merrill customers that rewards you for keeping your money with them in your combined accounts.
One of the perks is a bonus on certain Bank of America credit cards, including this Premium Rewards Card. And guys and gals, this bonus isn’t a gimmick; it’s pretty substantial.
Gold Tier: At this level, you get a 25% bonus on your credit card rewards. To reach the Gold tier, you need a combined average daily balance of at least $20,000 over three months in your Bank of America and/or Merrill accounts.
Platinum Tier: This level gives you a 50% bonus on your credit card rewards. To reach the Platinum tier, you need a combined average daily balance of at least $50,000.
Platinum Honors Tier: This is the game-changing tier. To reach Platinum Honors, you need a combined average daily balance of at least $100,000. And for that, you get a massive 75% bonus on your eligible credit card rewards.
Now, let’s talk about what “combined average daily balance” actually means. It’s not just cash sitting in a checking account. This includes your Bank of America checking and savings accounts, CDs, and all of your investment accounts with Merrill, including IRAs and brokerage accounts. For many people with a retirement account, reaching the Platinum Honors tier is easier than you might think.
The Combined Power: How to Get 2.625% Cash Back
Now for the fun part. Let’s see what happens when you combine the Bank of America Premium Rewards card with the Platinum Honors tier of the Preferred Rewards program.
- The card’s base rate on all non-travel and dining purchases is 1.5%.
- We then apply the Platinum Honors 75% bonus.
The math is simple: 1.5% times 1.75 gives you a final rewards rate of 2.625% cash back on all your everyday spending.
- Now, let’s look at the travel and dining categories. The base rate is 2%.
- Add the 75% bonus.
And that brings you to a staggering 3.5% cash back on travel and dining!
So, for a card with a $95 annual fee that you’ve likely already offset with the airline credit, you are now earning a flat rate of 2.625% on everything, and 3.5% on all travel and dining. This is a rewards rate that is nearly impossible to beat with any other credit card on the market without a rotating category or a spending cap. It is a true all-in-one card for the top tier of the Preferred Rewards program.
The Bottom Line
The Bank of America Premium Rewards card isn’t just about cash back. It’s a strategy. It’s for the person who wants to simplify their financial life by consolidating their banking and investing with one institution. In return, Bank of America gives you a credit card that consistently earns at a rate that would make even the most dedicated rewards hackers jealous.
This combination works because it rewards you for your total financial relationship with the bank, not just your credit card spending. For anyone with significant assets, especially retirement funds, this is a must-have setup that delivers some of the highest cash back rates you can find, with no spending caps and no complicated category tracking.
So, if you’re looking for a simple, powerful, and truly elite credit card, it’s time to take a serious look at the Bank of America Premium Rewards card and the Preferred Rewards program.
