Bank of America Travel Rewards + Preferred Rewards = Up to 2.775% everywhere card?
#1
Original Poster
Join Date: Jan 2014
Posts: 113
Bank of America Travel Rewards + Preferred Rewards = Up to 2.775% everywhere card?
Hello everyone,
I hesitate to post this as I have a lurking feeling this deal is too good to be true or last. Nevertheless, I just got approved for the Bank Americard Travel Rewards that earns 1.5x on everything when redeemed for flight, rental car, etc (similar to the BarclayCard Arrival).
In addition, I also opened a checking and savings at Bank of America, which automatically gives me a 10% annual bonus on points earned, bringing the rewards up to 1.65x.
Finally, with enough deposits, Bank of America offers 3 tiers of "Preferred Rewards" accounts, which results in an additional bonus on points earned. I've listed the tiers and hypothetical rewards below:
>$20k: 25% bonus meaning: 1.5 * 1.25 + 0.15(the 10% annual bonus) = 2.025x
>$50k: 50% bonus = similar math to above = 2.4x
>$100k: 75% bonus = 2.775x
I do realize many will not want to tie up between $20k and $100k at Bank of America but you can choose to hold your deposits in a Merrill EDGE self-directed investment account. As I like to keep a portion of my liquidity in the markets I will be going for the 75% bonus on credit card rewards.
So if I have my math right, it results in a 2.775x card with no annual fee, no foreign transaction fee, and an EMV chip to boot. This sounds too good to be true so I am asking the fine people of flyertalk to share their experiences with this card and perhaps shed light upon what I have overlooked.
UPDATE: The "preferred rewards" program seems to be in it's infancy, and it's currently not available nationally so I'll share any strange experiences I have using this card. Thanks!
I hesitate to post this as I have a lurking feeling this deal is too good to be true or last. Nevertheless, I just got approved for the Bank Americard Travel Rewards that earns 1.5x on everything when redeemed for flight, rental car, etc (similar to the BarclayCard Arrival).
In addition, I also opened a checking and savings at Bank of America, which automatically gives me a 10% annual bonus on points earned, bringing the rewards up to 1.65x.
Finally, with enough deposits, Bank of America offers 3 tiers of "Preferred Rewards" accounts, which results in an additional bonus on points earned. I've listed the tiers and hypothetical rewards below:
>$20k: 25% bonus meaning: 1.5 * 1.25 + 0.15(the 10% annual bonus) = 2.025x
>$50k: 50% bonus = similar math to above = 2.4x
>$100k: 75% bonus = 2.775x
I do realize many will not want to tie up between $20k and $100k at Bank of America but you can choose to hold your deposits in a Merrill EDGE self-directed investment account. As I like to keep a portion of my liquidity in the markets I will be going for the 75% bonus on credit card rewards.
So if I have my math right, it results in a 2.775x card with no annual fee, no foreign transaction fee, and an EMV chip to boot. This sounds too good to be true so I am asking the fine people of flyertalk to share their experiences with this card and perhaps shed light upon what I have overlooked.
UPDATE: The "preferred rewards" program seems to be in it's infancy, and it's currently not available nationally so I'll share any strange experiences I have using this card. Thanks!
Last edited by halfleafclover; Mar 1, 2014 at 12:01 pm
#3
Join Date: Jun 1999
Location: NYC/LA
Programs: DL Plat, AA Plat Pro, Marriott Titanium, IHG Diamond Amb
Posts: 7,487
Preferred Rewards is the replacement for BofA's Platinum Privileges, but has only rolled out to a few states so far. Supposedly it's to be rolled out nationwide by the end of the year.
#4
Join Date: Sep 2006
Posts: 146
In NV and WA the Marukai Premium JCB card (~3% on all spending) still wins IMO.
#5
Original Poster
Join Date: Jan 2014
Posts: 113
Definitely agree about the JCB card for the rewards. I actually looked into this after reading your post but my job sees me moving to Canada for a few years where acceptance is supremely spotty.
#6
Join Date: Dec 2014
Posts: 1
10% not stacked
According to the BoA terms and conditions, the 75% replaces the 10%, so these bonuses are not stacked as suggested in the above post. Thus, with the 1.5 points/$1 travel card, you earn 2.625 points. Still a nice deal, though.
#7
Join Date: May 2013
Posts: 3
BofA Cash Rewards 3.5% on Groceries and 5.25% on Gas
I was comparing the Travel card and the Cash Rewards cards and the combination of the 2 would be best. Cash cash gives 2% on Groceries and 3% on Gas - the top tier gives 75% bonus for total of 3.5% and 5.25%. Use the Travel card for everything at 2.65%.
#8
Join Date: Mar 2011
Location: PHL
Programs: US; AA; UA; Hilton Gold; Club Carlson Gold; IHG Platinum;
Posts: 388
Yes, but this card has a cap of the first $1,500 in combined grocery store and gas purchases each quarter. Can't really be scaled for MS.
#9
Join Date: Mar 2011
Posts: 370
Penny wise and pound foolish. Tying up $100000 in funds in a Merrill Lynch account compared to keeping it in a Vanguard low expense index fund/ETF will cost you dearly to earn that extra 0.65%. Better to stick to the FIA Amex or Barclay Arrival instead. How much spend (MS or real) do you plan to do on this card anyways?
#10
Suspended
Join Date: Aug 2005
Location: BOS
Posts: 15,027
Penny wise and pound foolish. Tying up $100000 in funds in a Merrill Lynch account compared to keeping it in a Vanguard low expense index fund/ETF will cost you dearly to earn that extra 0.65%. Better to stick to the FIA Amex or Barclay Arrival instead. How much spend (MS or real) do you plan to do on this card anyways?
#11
Join Date: Nov 2004
Location: Philadelphia
Programs: AA (Exec Plat), ANA (Plat), Club Carlson (Gld), Hilton (Diamond), IHG (Plat), SPG (Gld)
Posts: 447
Penny wise and pound foolish. Tying up $100000 in funds in a Merrill Lynch account compared to keeping it in a Vanguard low expense index fund/ETF will cost you dearly to earn that extra 0.65%. Better to stick to the FIA Amex or Barclay Arrival instead. How much spend (MS or real) do you plan to do on this card anyways?
#12
Join Date: May 2010
Posts: 189
Penny wise and pound foolish. Tying up $100000 in funds in a Merrill Lynch account compared to keeping it in a Vanguard low expense index fund/ETF will cost you dearly to earn that extra 0.65%. Better to stick to the FIA Amex or Barclay Arrival instead. How much spend (MS or real) do you plan to do on this card anyways?
There's absolutely no reason tahat you couldn't buy Vanguard ETFs in your Merrill Edge account. In fact, you'd even buy them with no transaction fee. You'd actually be saving Vanguard $$ by not having them service the account.
#14
Join Date: May 2010
Posts: 189
#15
Join Date: Jul 2008
Posts: 171
I live in Florida, and i checked to see what i qualify on the rewards you can do so here.
https://www.bankofamerica.com/preferred-rewards/
https://www.bankofamerica.com/preferred-rewards/