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Bank Of America Preferred Rewards Program Details & Review

Bank Of America Preferred Rewards Program

Incentives are frequently offered by financial organizations to entice clients to do more business with them. Banks try to encourage clients to consolidate their banking ties since, in general, customers who have a range of deposit accounts, credit accounts, and possibly a mortgage or vehicle loan are more profitable than customers who only have one account. Such an incentive program is provided by Bank of America under the name Preferred Rewards.

What is the Bank Of America Preferred Rewards Program?

The goal of the Bank of America Preferred Rewards program is to entice customers of Merrill Lynch and Bank of America to hold more assets with Merrill and Bank of America. Customers must maintain a combined total of $20,000 in deposits in Bank of America bank accounts and/or Merrill investment accounts to be eligible for the program.

What is the Bank Of America Preferred Rewards Program?

Customers who qualify for the program receive benefits including higher interest rates on deposit accounts, multiplied credit card rewards, and lower fees for a number of Bank of America and Merrill services. The opportunity to increase credit card rewards is for many people Preferred Rewards’ most alluring feature.

Which Credit Cards Are Awarded Preferred Rewards?

Many of the consumer credit cards issued by Bank of America are enrolled in the Preferred Benefits program and qualify for tier-based bonus rewards. The Bank of America Unlimited Cash Rewards credit card, the Bank of America Customized Cash Rewards credit card, the Bank of America Travel Rewards credit card, the Bank of America Premium Rewards credit card, and more are among these cards.

With the exception of the Norwegian Cruise Line World Mastercard, credit cards that do not offer rewards and co-branded cards are not included in the Preferred Rewards scheme. The Alaska Airlines Visa Signature credit card and Virgin Atlantic World Elite Mastercard are two examples of co-branded credit cards from Bank of America.

Although Bank of America does have a Business Preferred Incentives program with comparable rewards for business customers holding assets with Bank of America and Merrill, business credit cards are not eligible for the personal Preferred Rewards program.

How Can I Become a Member of Bank of America Preferred Rewards?

You must hold a three-month combined average daily balance of $20,000 or more in eligible Bank of America deposit accounts and/or Merrill investment accounts in order to qualify as a Preferred Rewards client. You must also have an eligible Bank of America checking account. To see if you meet these qualifications, log into your Bank of America account. In that case, you are free to sign up for the program.

Even though the balance requirements may seem onerous, you may still be able to qualify for the program if you combine the money you have in other deposit accounts, for instance, cash in a checking account, an emergency fund in one savings account, and money set aside for a future house down payment in another savings account into your Bank of America account.

Transferring a portion of your retirement funds to Merrill Edge is one more of the simplest methods to qualify for Bank of America Preferred Rewards, particularly if you want to reach the higher rewards tiers described below. Merrill offers both self-directed investment accounts through Merrill Edge with no annual program fee and guided investing, which matches you with an advisor and charges a percentage of your investment portfolio as an annual fee.

How Can I Become a Member of Bank of America Preferred Rewards?

Commission-free online trading in stocks, ETFs, and options are available via Merrill Edge. Exchange-traded funds, or ETFs, are financial vehicles that hold a diverse range of stocks, bonds, and other assets. They provide investors a simple, inexpensive way to diversify because they are purchased and traded on exchanges and frequently follow an index. The quickest way to achieve Preferred Rewards status if you have an individual retirement account, such as a Roth IRA or regular IRA, is to move your assets to Merrill Edge. 401(k) retirement plans sponsored by employers are not eligible.

Tiers for Bank of America Preferred Rewards

Five levels are available in the Bank of America Preferred Rewards program:

  • Gold
  • Platinum
  • Platinum Honors
  • Diamond
  • Diamond Honors

With each subsequent tier, the benefits members receive as well as the total balance necessary to qualify rise. You will maintain the higher tier level for a full year even if your balances fall below the Preferred Rewards Tier level you have attained. You will be moved to a lower tier after a year plus a three-month grace period based on your existing balances.

Gold Tier

The program is open to Bank of America clients with three-month average daily balances between $20,000 and $49,999 across their Bank of America and Merrill accounts.

The 25% reward incentive on qualified Bank of America credit card accounts is the standout benefit of the Gold tier of Preferred Rewards.

In addition to the aforementioned benefits, the Gold tier grants the following extra reductions and rewards on Merrill Lynch and Bank of America products:

  • $200 off the origination fee for a new purchase or refinancing mortgage from Bank of America
  • On a Bank of America Advantage Savings account, a 5% interest rate rise
  • On a brand-new Bank of America home equity line of credit, there is a 0.125% interest rate discount.
  • 0.25% off the interest rate on a new Bank of America auto loan for refinancing or purchasing a vehicle
  • For mobile and online orders of foreign currencies, there is a 1% discount plus free standard shipping.
  • Discount of 0.05% per year on program fees for Merrill-directed investment products.

Priority member service, no monthly maintenance fees on up to four eligible Bank of America checking and savings accounts, and no fees on a few select services, such as standard check orders, cashier’s checks, incoming domestic wire transfers, and more, are all included in all Bank of America Preferred Rewards tiers.

Platinum Tier

Members of the Preferred Rewards program with three-month aggregate average daily balances between $50,000 and $99,999 across their Bank of America and Merrill accounts are eligible for the Platinum Tier.

When you reach the Platinum tier, several of the additional savings on goods from Bank of America and Merrill Lynch rise.

  • $400 off the origination fee for a new purchase or refinancing mortgage from Bank of America
  • 10% increase in interest rates for Bank of America Advantage Savings accounts.
  • On a brand-new Bank of America home equity line of credit, there is a 0.250% interest rate discount.
  • 0.35% off the interest rate on a new Bank of America car loan for buying or refinancing
  • 1.5% off foreign currency purchases made on mobile and online, with free standard shipping
  • 0.10% off of Merrill directed investing products’ yearly program fees

Platinum Honors

Platinum Honors designation is awarded to Preferred Rewards program participants with three-month average daily balances between $100,000 and $999,999 across their Bank of America and Merrill accounts.

The benefits of the Platinum tier are enhanced by Platinum Honors, which also offers a 75% credit card reward bonus. As it comprises the greatest credit card rewards bonus that Bank of America offers, Platinum Honors is the sweet spot for many Bank of America Preferred Rewards program participants. Additionally, clients of Platinum Honors receive unlimited, fee-free ATM withdrawals inside the United States as well as a 0.15% discount on Merrill direct investing.

When you reach the Platinum Honors tier, several of the additional savings on items from Bank of America and Merrill also rise:

  • $600 off the origination fee for a new purchase or refinancing mortgage from Bank of America
  • On a Bank of America Advantage Savings account, there is a 20% interest rate boost.
  • On a brand-new Bank of America home equity line of credit, there is a 0.375% interest rate discount.
  • 0.50% off the interest rate on a new Bank of America auto loan for refinancing or purchasing a vehicle
  • For mobile and online purchases of foreign currency, there is a 2% discount and free standard shipping.
  • 0.15% off of Merrill-directed investing products’ yearly program fees.

Diamond Tier

Customers of Bank of America with assets between $1 million and $9,999,999 at Bank of America and Merrill are eligible for the Diamond tier, which includes all the perks of the Platinum Honors category.

The Diamond tier offers a reduced mortgage interest rate on new purchases or refinancing mortgages, but the additional benefits are few. This interest rate reduction is 0.250% at the Diamond tier. The interest rate reduction on a brand-new Bank of America home equity line of credit rises to 0.625% with the Diamond tier. Additionally, if you travel frequently, you can use ATMs anywhere in the globe without a limit.

Diamond Honors

For clients with a combined balance of $10 million or more with Bank of America and Merrill, the Diamond Honors tier is the highest level of the Preferred Rewards program and comes with all of the perks of the Diamond tier. Customers of Diamond Honors receive a 0.375% mortgage interest rate decrease and a 0.750% home equity line of credit interest rate reduction.

How To Get The Most Out of Bank of America

Focusing on the bonus multiplier that is applicable to qualified Bank of America credit cards is the best approach for most consumers to get the most out of the Bank of America Preferred Rewards program. The Preferred Rewards program gives participants a 75% bonus on credit card rewards after they reach the Platinum level or higher.

How Can I Become a Member of Bank of America Preferred Rewards?

If you travel frequently, think about applying for the Bank of America  Premium Rewards credit card, which offers a base 2 points per dollar on travel and dining purchases and 1.5 points per dollar on all other purchases. If you have Platinum Honors or higher status, this card can be used to earn 3.5% cash back on all travel and dining purchases. Few cards can equal 3.5% cash back on all travel purchases, even though you might be able to wring out better returns at your preferred hotel chain or by using transferable points for foreign business class flights.

Frequently Asked Questions [FAQs]

How to Become a Bank Of America Preferred Rewards client?

Customers of Bank of America with combined average daily balances over $20,000 over the previous three months will be eligible for Bank of America Preferred Rewards.

Is Bank Of America Preferred Rewards worth it?

Bank of America Preferred Rewards combined with a Bank of America credit card can definitely be worthwhile if you spend a lot on everyday purchases or on travel. Some of the top cash-back earning rates are 3.5% cash back on travel purchases and 2.62% cash back on general transactions.

How much are Bank Of America points worth?

Points earned with Bank of America rewards cards are worth one penny apiece.

Is Bank of America preferred rewards worth it?

Bank of America Preferred Rewards combined with a Bank of America credit card can definitely be worthwhile if you spend a lot on everyday purchases or on travel. Some of the top cash-back earning rates are 3.5% cash back on travel purchases and 2.62% cash back on general transactions.

Is Bank of America preferred rewards free?

Preferred Rewards does not charge anything to join or take part. Additionally, after you’re signed up, your tier will automatically upgrade when your balances raise you to the next level of incentives.

How much does Bank of America preferred rewards cost?

The Bank of America  Premium Rewards credit card might be preferred by more frequent travelers than the Bank of America Travel Rewards card. Despite having a $95 annual fee, you may earn 2X points on eating and travel expenses in addition to 1.5X points on all other transactions.

The Conclusion

Consider pursuing Bank of America’s Preferred Rewards Platinum level if you have $50,000 or more in assets that you can quickly transfer to Bank of America and Merrill and spend a lot of money on credit cards. If you can transfer $100,000 or more in assets to Merrill, you can earn 2.62% cash back on all purchases and 3.5% cash back on all travel expenses thanks to your Platinum Honors status and the Bank of America® Premium Rewards credit card.

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