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Key takeaways
- The Bank of America® Premium Rewards® credit card is not the strongest option for travel enthusiasts, but it benefits existing Bank of America customers in the Preferred Rewards program.
- The card has a $95 annual fee and offers unlimited 2X rewards on travel and dining purchases and 1.5X rewards on all other purchases.
- Preferred Rewards members can earn additional bonuses of up to 75 percent on rewards.
When selecting a travel credit card, it’s crucial to choose one that can help you earn valuable perks and benefits for your travel experiences, whether they are close to home or far away. Before committing to a card, like the Bank of America® Premium Rewards® credit card, it’s essential to explore all your options.
In essence, the Bank of America Premium Rewards credit card may not be the top choice for travel enthusiasts, except for those who are already Bank of America customers in the Preferred Rewards program. However, before dismissing this card entirely, let’s delve into its features and determine who it may be suitable for. Here’s what you should know about this card.
Quick card highlights
- Rewards rate: Unlimited 2X points on travel and dining purchases; Unlimited 1.5X points on all other purchases
- Welcome offer: 60,000 online bonus points after spending $4,000 on purchases in the first 90 days
- Annual fee: $95
- Regular APR: 21.24 percent to 29.24 percent (variable)
Additional card perks and benefits
- Up to $100 credit for Global Entry or TSA PreCheck. Covers your application fee for either program every four years (a value of $25 per year).
- Up to $100 incidental airline credit. Annual credit that covers eligible costs like baggage fees, seat upgrades, changes to your flight, lounge access or in-flight purchases like food and beverages.
- Visa Signature Luxury Hotel Collection. Offers access to perks like automatic room upgrades (when available), late checkout, complimentary Wi-Fi and breakfast, VIP Guest status as well as a $25 food and beverage credit.
You can redeem your Premium Rewards points for travel booked through the Bank of America Travel Center, gift cards, or cash back in the form of a statement credit or a deposit into an eligible Bank of America or Merrill account.
“I use the rewards for statement credits and to purchase stocks in a separate Merrill Lynch brokerage account,” says Bankrate senior editor Harlan Vaughn.
However, there are some notable exclusions when it comes to additional protections and benefits typically associated with travel cards. Notably, this card lacks extended warranty and purchase protection, travel cancellation/delay insurance, or rental car coverage. The absence of travel partners for transferable points is another disappointing omission.
When should you get the Bank of America Premium Rewards card?
With unlimited 2X rewards points on all travel dining purchases, this card is a strong option for those who only occasionally travel or specifically travel out of the U.S., thanks to its lack of a foreign transaction fee.
“The chip and PIN features make [the Bank of America Premium Rewards card] a great card for international travel,” says credit card writer Ryan Flanigan. The Bank of America Premium Rewards card is my top choice for international travel and non-bonus category purchases. It becomes even more valuable if you qualify for the Bank of America Preferred Rewards program, which offers increased rewards of 25% to 75% for every dollar spent on the Premium Rewards card. Becoming a member of this program requires maintaining a high balance in your Bank of America account.
One way to reach Preferred Rewards status is by transferring an old 401(k) to a traditional IRA with Merrill Lynch, as Vaughn did to achieve Platinum Honors status. The program also offers additional benefits such as savings boosters and discounts on loan products and brokerage services, depending on the tier you qualify for.
While it may require a significant deposit with the bank, being a Preferred Rewards member can significantly enhance your earnings with the Premium Rewards card. At the highest tier, you could earn up to 3.5X points on travel and dining purchases and up to 2.62X points on everyday spending.
Even if you’re unsure about becoming a Preferred Rewards Member, the $100 yearly statement credits for airline incidentals are a valuable perk that covers the card’s annual fee and makes it worth keeping long term.
In conclusion, the Bank of America Premium Rewards credit card offers a generous welcome bonus and decent rewards for travel and dining, making it a worthwhile consideration, especially for Preferred Rewards members. However, it may not be the top choice for avid travelers compared to cards with enhanced redemption options like the Chase Sapphire Preferred® Card or the Capital One Venture Rewards Credit Card.