Review of the Bank of America Premium Rewards credit card: A card not to overlook

Overview of the Bank of America Premium Rewards credit card

For those eligible for the Bank of America® Preferred Rewards® program, the Bank of America® Premium Rewards® credit card can be a highly rewarding option for daily expenses. However, if you prefer cards from other banks, there may be better options for earning travel rewards. Card rating*: ⭐⭐⭐½

* The card rating reflects the views of TPG's editors and is not swayed by the card issuer.

Initially, I struggled to see the value in Bank of America's credit cards. While many feature low or no annual fees, they often lack the benefits I cherish in my favorite cards. The rewards are also not transferable to airline or hotel loyalty programs. However, now that I've gained insight into the Preferred Rewards banking program, I'm starting to recognize the advantages of holding a Bank of America credit card.

Although it features 'premium' in its title, this card differs from other offerings that come with annual fees ranging from $400 to $500 and extensive perks. Instead, it has a more affordable $95 annual fee and a simpler array of benefits. Nevertheless, it provides excellent flexibility for point redemption and can yield impressive earning rates if you effectively utilize Bank of America's Preferred Rewards banking program. We suggest a credit score of at least 670 for eligibility.

Advantages and disadvantages of the Bank of America Premium Rewards credit card

Welcome bonus for the Bank of America Premium Rewards credit card

By using the Premium Rewards card, you can earn 60,000 bonus points after spending $4,000 on purchases within the first 90 days of opening your account. Each point holds a fixed value of 1 cent, making this bonus worth $600. While this may not be the most generous bonus available, $600 can significantly contribute toward airfare, hotel expenses, or other costs.

Although Bank of America does not have specific published rules for earning welcome bonuses, be aware of the well-known 2/3/4 rule regarding card applications. You can only be approved for two Bank of America cards within a two-month timeframe, three cards over 12 months, and four cards in a 24-month span.

Keep in mind that your overall credit profile will be taken into account, so approval is not guaranteed even if you stay within these limits. Additionally, there are no application restrictions indicating that you cannot receive this bonus if you have had the card before or that you must wait a certain period before reapplying.

Benefits of the Bank of America Premium Rewards credit card

While the Premium Rewards card may not compare to elite cards like The Platinum Card® from American Express, it does offer appealing perks for its affordable annual fee. Key benefits of this card include:

• Receive up to $100 in statement credits each year for eligible airline incidentals
• Get a $100 statement credit for TSA PreCheck or Global Entry every four years
• Insurance for trip delays, interruptions, and cancellations
• Purchase protection coverage
• Collision damage waiver for auto rentals

This benefits package is impressive for a card with a $95 annual fee. By effectively utilizing the annual airline incidentals credit, you can extract significant value from this card. Cardholders also enjoy certain Visa Signature® advantages, including access to the Visa Signature Luxury Hotel Collection.

Earning points with the Bank of America Premium Rewards credit card

With the Premium Rewards card, you earn 2 points for every dollar spent on travel and dining, and 1.5 points on all other purchases. Travel and dining encompass a wide range of expenses, allowing many purchases to qualify for the double points rate.

The true advantage lies in the Preferred Rewards program. If you’re a member, you can earn an additional 25-75% more points on every purchase, potentially reaching an impressive 2.625 points per dollar on non-bonus expenditures. This rate surpasses that of any flat-rate card available.

Redeeming points with the Bank of America Premium Rewards credit card

One aspect I appreciate about the Premium Rewards card is its simplicity and low maintenance. There's no need to navigate complex processes to find award availability, nor do you have to visit a specific portal to redeem points for things like your gym membership.

Since points maintain the same value regardless of how you choose to redeem them, you won’t be penalized for cashing them in for cashback.

Here are several options for redeeming your points:

• Cash back: Once you accumulate 2,500 points or more, you can redeem them for cash back either as a statement credit or by depositing it into an eligible Bank of America checking or savings account, Merrill account, or 529 college savings plan.
• Travel purchases: You can directly book flights through the Bank of America travel portal. This method allows you to redeem points while still earning award miles and elite credits from your paid ticket (however, booking directly with the airline may offer better fares since portal bookings can sometimes lead to a lower fare class).
• Gift cards: Another option is converting your points into gift cards from popular retailers like Amazon, Whole Foods, and Starbucks. I recommend against this, as it’s generally more advantageous to buy gift cards directly with your credit card to take advantage of purchase protection benefits.

You also have the option to convert your points into cash and deposit them into a 529 college savings account. This is an excellent choice for preparing for high tuition costs for yourself or a family member.

If your primary focus is on travel rewards, this card can also help cover travel-related expenses that you can't redeem with miles, such as offsetting surcharges on award tickets or for extraordinary experiences on the ground.

At first glance, hearing that points are valued at just 1 cent each might seem underwhelming, especially when compared to the value of other points and miles. Nevertheless, the straightforwardness of avoiding complex calculations or worrying about achieving a "maximum redemption value" can actually be a significant advantage.

Which credit cards are competitors of the Bank of America Premium Rewards card?

The top cards to consider alongside the Premium Rewards card are those with comparable annual fees. Let’s explore a few options:

• If you prefer Chase: The Chase Sapphire Preferred® Card features a $95 annual fee, which is mitigated by a complimentary DashPass membership (must be activated by Dec. 31, 2027) and a statement credit of up to $50 for hotel bookings through Chase Travel℠. This card offers 5 points per dollar on travel booked through Chase Travel, 3 points on dining and online grocery purchases (excluding Walmart, Target, and wholesale clubs), 2 points on all other travel expenses, and 1 point on everything else. For more details, check out our comprehensive review of the Chase Sapphire Preferred.
• If you like Citi: The Citi Strata Premier℠ Card (see rates and fees) also has a $95 annual fee, offset by a $100 discount on eligible hotel stays of $500 or more booked via Citi Travel. The Strata Premier earns 10 points per dollar on hotel, car rental, and attraction bookings made through Citi Travel, 3 points on air travel, other hotel purchases, restaurants, supermarkets, gas stations, and electric vehicle charging stations, with 1 point per dollar on all other purchases. To learn more, read our detailed review of the Citi Strata Premier.
• If you prefer American Express: The Blue Cash Preferred® Card from American Express has an introductory annual fee of $0 (then $95 per year; see rates and fees). This card's primary advantage includes up to $84 in statement credits each calendar year (up to $7 monthly) for eligible Disney Bundle charges of $9.99 or more each month (enrollment required; subject to auto-renewal). The card offers 6% cash back at U.S. supermarkets (on the first $6,000 annually, then 1%) and on selected U.S. streaming services, 3% cash back on transit and gas purchases, and 1% on all other transactions. Cash back is provided as Reward Dollars, which can be redeemed for statement credits or at checkout on Amazon.com. For more information, see our in-depth review of the Amex Blue Cash Preferred.

For more options, check out our selections for the top travel cards.

Is the Bank of America Premium Rewards credit card a worthwhile choice?

If transfer partners aren't crucial for you, I suggest looking into the Premium Rewards card. This is particularly beneficial if you’re a Preferred Rewards member, as you can earn extra points for every dollar spent. Regardless, this card provides valuable perks for its annual fee.

In summary

The Bank of America Premium Rewards card is a solid option if you're in the market for a mid-tier card with appealing benefits. Although the absence of transfer partners may deter some users, it still presents favorable redemption opportunities. As always, evaluate it alongside other mid-tier cards to ensure it fits your needs.