Picking the right card for your needs isn’t always easy, considering there are seemingly endless credit card offers on the market. If you’re looking for a credit card that not only has a $150 intro bonus opportunity, but also earns cash back on everyday purchases at gas stations, grocery stores, wholesale clubs and more, the Bank of America Cash Rewards Credit Card is a perfect fit. What’s more, Bank of America banking customers get even more rewards! Keep reading to learn all about this top-rated cash back credit card, and see if it’s a good addition to your wallet.

What does the Bank of America Cash Rewards Credit Card offer?

Kicking things off is a $150 cash rewards bonus that you’ll earn after spending $500 on purchases in the first 90 days of account opening — that’s a 30% bonus! In terms of ongoing rewards, cardholders earn 3% at gas stations as well as 2% at grocery stores and wholesale clubs (up to the first $2,500 in combined gas station/grocery store/wholesale club purchases each quarter, then it’s 1% back). It should be noted that earning 2% at wholesale clubs, including Costco and Sam’s Club, is a pretty great perk, especially since the Bank of America Cash Rewards Credit Card is one of the only cards that offers this as an ongoing perk. All other purchases made with the card earn 1% cash back.

While the cash rewards are impressive, they’re not the only benefits you can expect as a Bank of America Cash Rewards Credit Card holder. The card also has no annual fee and offers a 0% intro APR for 12 billing cycles on purchases, which is helpful if you want some time to pay off a large purchase interest free. On top of that, you’ll get a 0% intro APR for 12 billing cycles on balance transfers made within the first 60 days of account opening. There is a 3% balance transfer fee (with a $10 minimum), but this one-time fee is no big deal when you consider how much you’ll save in interest, and remember that you’ll get some great cash back rewards on purchases, meaning you’ll probably want this card in your wallet for years to come. It should also be noted that the Bank of America Cash Rewards Credit Card is available to those with good to excellent credit (usually considered a credit score of 700 or higher).

Cash back earned with the Bank of America Cash Rewards Credit Card can be redeemed in increments of $25 for a statement credit, paper check or direct deposit into an eligible Bank of America checking or savings account. The latter of the three provide the most value for your rewards. Continue reading to find out why.

Bank of America customers can earn even more cash back

Although this card makes sense for anyone looking to earn cash back on their everyday purchases, it offers even more incentive to Bank of America banking customers. That’s because banking customers can earn a bonus of 10% up to 75% on all their purchases, depending on the type of account they have.

Earn a 10% bonus: Any customer who has a checking or savings account as well as the Bank of America Cash Rewards Credit Card will earn an additional 10% rewards bonus when they redeem their rewards for a deposit into their account. For example, if you earn $500 cash back, you’ll get an extra $50 for redeeming that cash into your eligible Bank of America account.

What’s more, Preferred Rewards banking customers will get a bonus of 25% to 75% when they redeem their cash back for a deposit into their account. Here’s how the bonuses work:

  • Gold Preferred Rewards customers get a 25% bonus
  • Platinum Preferred Rewards customers get a 50% bonus
  • Platinum Honors Preferred Rewards customers get a 75% bonus

The next question you’re probably asking yourself is, “Are these bonuses that significant?” Well, let’s break it down with this sample monthly spend:

Sample monthly spend % Cash back Cash back earned
$100 at gas stations 3% $3
$500 at grocery stores and wholesale clubs 2% $10
$200 on dining out 1% $2
$300 on utility payments 1% $3
Estimated monthly cash back total    $18
Estimated annual cash back total   $216

Now that we have an estimated annual cash back total of $216, let’s see how much the Gold, Platinum and Platinum Honors bonuses can bump up your total cash back:

  • Gold: 25% x $216 = $54 bonus for a total of $270 back
  • Platinum: 50% x $216 = $108 bonus for a total of $324 back
  • Platinum Honors: 75% x $216 = $162 bonus for a total of $378 back

As you can see, the Preferred Rewards bonus can really boost your rewards potential, as the annual cash back total for these customers ranges from $270 to $378, based on the example above.

The next question you’re likely asking is, “How do I become a Preferred Rewards customer?” There’s no fee to participate, but you’ll need an active, eligible Bank of America personal checking account and a 3-month average combined balance of $20,000 or more (note that the two higher tiers require higher balances) in qualifying Bank of America deposit accounts and/or Merrill Edge and Merrill Lynch investment accounts. If you believe you qualify, log in to Bank of America’s website to learn more.

Are there any downsides?

All in all, the Bank of America Cash Rewards Credit Card is a great card for anyone who wants to earn cash back on everyday purchases. In fact, the only aspect of the card that’s somewhat lacking is the 0% intro APR period. If you want a card with a slightly longer 0% intro APR period, and you don’t mind giving up the Bank of America customer bonus, you may want to consider the Blue Cash Everyday Card from American Express (a NextAdvisor advertiser). This card offers a 15-month 0% intro APR on purchases and balance transfers (with a 3% or $5 balance transfer fee, whichever is greater) and earns $3% cash back at U.S. supermarkets (up to $6,000/year in purchases, then it’s 1% back), 2% back at U.S. gas stations and select U.S. department stores as well as 1% on all other purchases. It also has no annual fee and a $150 bonus opportunity to those who spend $1,000 on purchases in the first 3 months. Cash back earned with the Blue Cash Everyday Card from American Express can be redeemed for statement credit, merchandise, gift cards or travel through American Express Travel. It’s also available to those with good to excellent credit (usually considered a credit score of 700 or higher).

Should you apply for the Bank of America Cash Rewards Credit Card?

Those who frequent the gas station, grocery store or wholesale club will likely be satisfied with the Bank of America Cash Rewards Credit Card, especially if they’re Bank of America banking customers. As we detailed above, the customer bonuses can be significant, and the card’s intro bonus and ongoing rewards are pretty impressive, making it a great option for anyone looking to earn cash back on everyday purchases.

Click here to apply for the Bank of America Cash Rewards Credit Card, and check out our review to learn more about this top-rated cash back credit card.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but card terms and conditions may change at any time. This site may be compensated through the credit card issuer Affiliate Program.