How to optimize your earnings with the Bank of America Premium Rewards card

The Bank of America® Premium Rewards® credit card is a reliable travel rewards card with an annual fee of $95.

While often overshadowed by rival cards like the Chase Sapphire Preferred® Card and the Capital One Venture Rewards Credit Card, the Bank of America Premium Rewards card deserves attention if you seek ease in earning and redeeming rewards.

You can unlock even greater value with this card if you're already a Bank of America customer and meet the criteria for the Preferred Rewards program. This program offers exceptional benefits for eligible members, potentially turning your Premium Rewards card into a top choice — including bonuses of up to 75% on your eligible credit card rewards.

If you already own this card — or are considering applying — here’s a guide on how to maximize your earning potential with the Bank of America Premium Rewards Card.

Overview of the Bank of America Premium Rewards card

First, let's explore all the benefits and perks associated with the Bank of America Premium Rewards card, which has an annual fee of $95:

• Sign-up bonus: Earn 60,000 online bonus points (valued at $600) after you spend at least $4,000 within the first 90 days of opening your account.
• Rewards rate: Earn unlimited 2 points for every dollar spent on travel and dining. Earn 1.5 points for every dollar spent on all other purchases.
• Up to $100 in annual airline statement credit: Eligible for incidental purchases such as seat upgrades, baggage fees, inflight refreshments, airline lounge fees, and more.
• Up to $100 statement credit for Global Entry or TSA PreCheck: You'll receive reimbursement for your application to Global Entry or TSA PreCheck every four years.
• Travel protections: When you use your card to pay for travel, you’ll receive complimentary coverages including trip delay reimbursement, trip cancellation/interruption insurance, baggage delay and lost luggage reimbursement, travel and emergency assistance services, emergency evacuation and transportation protection, secondary rental car insurance, and roadside dispatch program.
• Shopping protections: You'll benefit from purchase protection, extended warranty, and return protection when you purchase eligible items with your card.
• Premium benefits: Access to the Visa Signature Luxury Hotel Collection and a concierge service.
• No foreign transaction fees

Tips for maximizing the Bank of America Premium Rewards card

In addition to the 60,000-point sign-up bonus, it's important to know when to use the Bank of America Premium Rewards card for optimal benefits. Here are our recommendations:

Check if you're eligible for the Preferred Rewards program

As previously noted, the Preferred Rewards program from Bank of America is a fantastic way to enhance the value you get from this card. The program features three tiers: Gold, Platinum, and Platinum Honors.

These earning rates are quite impressive, especially as you ascend the tiers of the Preferred Rewards program. For example, at the Platinum Honors level, you earn an incredible 2.63 points per dollar on all other purchases, making it unbeatable for non-bonus spending. In comparison, cards like the Capital One Venture Rewards provide 2 miles per dollar on all purchases, while the Chase Freedom Unlimited® offers 1.5% cash back (1.5 points per dollar) on non-bonus categories.

Next, utilize your Premium Rewards card for travel, dining, and even regular purchases.

Regardless of whether you achieve Gold, Platinum, or Platinum Honors status, the Premium Rewards card excels for travel (2.5- points per dollar) and non-bonus purchases (1.88-2.63 points per dollar).

Many rewards credit cards limit bonus points to flights and hotels. However, the Premium Rewards card encompasses a wide travel category that includes — but is not limited to — car rentals, RV rentals, travel agencies and tours, boat rentals, tolls and parking fees, as well as attractions like art galleries, amusement parks, zoos, and more.

Likewise, the non-bonus earning potential is significant with the Premium Rewards card. While it's beneficial to have cards that feature bonus categories, exclusions can often be a drawback.

For spending in non-bonus categories, the Premium Rewards card offers 1.5 points per dollar, and even more if you're part of the Preferred Rewards program (ranging from 1.88 to 2.63 points, based on your tier). This means there's minimal opportunity cost when using these cards for everyday purchases.

When to avoid using the Bank of America Premium Rewards card

However, the Bank of America Premium Rewards card isn't suitable for everyone. Here are some situations where you should consider not using this card.

Refrain from using the Premium Rewards card if you're looking for access to airline and hotel transfer partners.

Despite being a travel rewards card, Bank of America currently lacks any transfer partners. Instead, your points hold a value of 1 cent each, and you can redeem them for cash back deposited into a Bank of America checking or savings account, receive a statement credit, or redeem for gift cards or purchases through the Bank of America Travel center.

This isn't necessarily negative. This card serves as a refreshing option for those looking to optimize their spending without delving into the complexities of airline and hotel transfer programs.

Points and miles might not be the best long-term investment, and individuals who prefer cash back for unlimited potential will appreciate this flexibility. Moreover, many travel expenses, like ski lessons or museum admissions, typically can't be redeemed using points.

Avoid using the Premium Rewards card for dining expenses.

While this isn't a strict rule, as the Premium Rewards card still offers solid returns on dining, there are certainly other cards that provide more benefits. For instance, the American Express® Gold Card grants 4 points at restaurants for the first $50,000 spent each year, then 1 point per dollar (an 8% return based on TPG's July 2024 valuations), or the Chase Sapphire Preferred which offers 3 points (a 6.15% return).

However, there comes a time when the thrill of maximizing every single purchase starts to fade. While you could sign up for the aforementioned cards to earn more on dining, that also means managing another card and its annual fee. With its robust earning potential—especially if you qualify for the bonuses from the Preferred Rewards program—the Bank of America Premium Rewards card remains a solid choice for dining.

Conclusion

Regardless of whether you qualify for the Preferred Rewards program, the Bank of America Premium Rewards card offers substantial value. The up to $100 airline incidental statement credit each year more than offsets the $95 annual fee, and the competitive rewards rate keeps this card a strong player in the market.