New limited-time supply. The Financial institution of America Limitless Money Rewards Card is the most straightforward, simple, no-annual-fee bank card within the Financial institution of America line-up. If you’re a Most popular Rewards shopper, you’ll be able to improve the money again earned by 25% to 75%. Proper, they’re additionally providing a particular supply through the first yr. Listed below are the highlights:
- New prospects: $200 money rewards bonus after $1,000 in purchases within the first 90 days.
- 2% money again on purchases for the primary yr from account opening. After that, the usual construction is limitless 1.5% money again on all purchases. Redeem as an announcement credit score, deposit to BofA checking account, or deposit to Merrill brokerage account (together with 529).
- Financial institution of America Most popular Rewards® members earn 25%-75% more money again on each buy. Nonetheless, Most popular Rewards bonuses usually are not utilized to the 0.5% first-year bonus. Particulars beneath.
- 0% Introductory APR supply. See hyperlink for particulars.
- 3% international transaction price.
- No annual price.
Throughout the present limited-time supply, the money again rewards are boosted to 2% for the primary yr. The 75% Most popular Rewards bonus for Platinum members doesn’t apply to the additional 0.5%, so the web money again through the first yr for Platinum members could be 1.5% * 1.75 + 0.5% = 3.125% money again on every little thing through the first yr. I ponder if that is in response the current US Financial institution Well card adjustments… now that new candidates can’t get an analogous deal at 4% money again, this is likely to be the most effective deal on the town once more.
Most popular Rewards bonus fundamentals. The Most popular Rewards program is designed to rewards shoppers with a number of account and better property positioned at Financial institution of America banking, Merrill Edge on-line brokerage, and Merrill Lynch funding accounts. Here’s a partial desk taken from their comparability chart (click on to enlarge):
Let’s think about the choices. Financial institution of America’s rates of interest on money accounts are typically decrease than highest-available outdoors banks (learn: almost zero), so transferring money over to qualify might lead to incomes much less curiosity in your money deposits. Merrill Lynch advisory accounts additionally often include administration charges. The candy spot is subsequently the Merrill Edge self-directed brokerage, the place you’ll be able to transfer over your current brokerage property like shares, mutual funds, and ETFs held elsewhere (Vanguard, Constancy, Schwab, and so on).
Prior to now, transferring over to Merrill Edge on the Platinum and Platinum Plus ranges additionally led to 30 to 100 free on-line inventory trades each month. Quick ahead to now, and almost all main on-line brokers supply commission-free trades anyway.
Personally, I moved over $100k of brokerage property from Vanguard to Merrill Edge to qualify for Platinum Honors. You must ask Merrill Edge if they are going to cowl any ACAT switch charges concerned. I understand not everybody may have this degree of property to maneuver round, however in case you do then it’s price contemplating. Remember the fact that it can take some time on your “3-month common mixed steadiness” to achieve the $100k degree and formally qualify for Platinum Honors. (In sure circumstances, if you open a brand new Merrill Edge account and new BofA Checking with a asset switch bonus supply, chances are you’ll be eligible to “quick observe” to the next tier.) You would possibly turn out to be Gold first, then Platinum, and so forth. After that, the 25%-75% rewards bonus on bank card rewards kick in. When you attain a sure tier, BofA ensures that you’ll keep there for a yr it doesn’t matter what, even when your steadiness fluctuates.
Boosted money again percentages with Most popular Rewards. The usual construction is a flat 1.5% money again on all purchases. Right here’s how the numbers work out after you attain every tier:
- Platinum Honors: 2.625% money again on all purchases (75% bonus).
- Platinum: 2.25% money again on all purchases (50% bonus).
- Gold: 1.875% money again on all purchases (25% bonus).
I think about the bar set at 2% money again to be thought-about a “nice” rewards card. The Platinum and Platinum Honors ranges will let you surpass that bar. Once more, not everybody may have this degree of property to maneuver round, and so this supply shouldn’t be out there to everybody. BofA is prepared to pay such excessive money again on the bank card as a result of they hope to make it again via their different merchandise (banking, brokerage, loans).
Their plan labored on me as a result of Financial institution of America has managed to persuade me to go from solely having a checking account with them to now additionally having a Merrill Edge brokerage account and a Financial institution of America bank card.
Comparability towards different BofA bank cards. Not all Financial institution of America client bank cards qualify for Most popular Rewards. Different playing cards of curiosity that do qualify are:
Actually, these are all stable playing cards if you qualify for Most popular Rewards. I can see any certainly one of them being a sensible choice for people who need comparatively easy rewards after establishing a “relationship” with BofA.
My slight private favourite is the Journey Rewards bank card. The rewards construction on the Journey Rewards is much like the Limitless Money Rewards card together with the 1.5% again (as much as 2.62% with Most popular Rewards) incomes charge and no annual price, besides that the rewards can solely be used to offset previous journey and eating purchases made on the cardboard prior to now 12 months. I’ve redeemed hundreds of {dollars} in assertion credit and by no means run out of journey/eating purchases to offset. Their redemption course of is fast and simple. One distinction is that the Journey Rewards has no international transaction price, whereas this Limitless Money Rewards card has a 3% international transaction price. Collectively, this makes the Journey Rewards card an excellent “catch-all” card that I all the time have in my pockets. You might favor the Limitless Money Rewards card in case you have little or no journey/eating costs.
The Premium Rewards card could also be higher in case you can reliably make the most of the $100 annual Airline Incidentals credit score (seat upgrades, baggage charges, lounge charges) to offset the $95 annual price, as then the elevated money again on journey/eating is all internet revenue. The Personalized Money Rewards playing cards with its 3/2/1 construction can be tempting as a companion to the Journey/Limitless Money, however chances are you’ll favor different rewards card for particular classes.
Backside line. The Financial institution of America Limitless Money Rewards Credit score Card is an “okay” money again rewards card with a 1.5% money again on every little thing construction, however turns into an “glorious” 2.62% money again rewards card in case you can take full benefit of their Most popular Rewards program. In the event you switch $100,000 of current brokerage property (might be ETFs or mutual funds) over to Merrill Edge, you’ll be able to qualify for the very best Platinum Honors tier. This received’t be possibility for everybody, however one thing to pay attention to in case you can swing it.
Throughout the present limited-time supply, the money again rewards are boosted to 2% for the primary yr. The 75% Most popular Rewards bonus for Platinum members doesn’t apply to the additional 0.5%, so the web money again through the first yr for Platinum members could be 1.5% * 1.75 + 0.5% = 3.12% money again on every little thing through the first yr.
