LAX

While that would be great news, I still don't understand the purpose of adding those 2 new tiers. Would BofA be doing a "multiphase realignment"? The changes to existing tiers would be coming at a later time perhaps?

LAX

zorbachs

I think the two new tiers are so they can offer "lifestyle" benefits to HNW clients. Otherwise, it looks like the new tiers have little difference from PH.

G2244

The purpose may have little to do with end consumers. As I have pointed out several times, BoA and Merrill have 2 separate tier structures (and likely for different purposes). This change may be more to align the 2 tiers into a single tier structure used by both BoA and Merrill. Of course they have to put some kind of marketing spin on it to get the word out but it may not really be geared to make sense outside of an outcome with 1 common set of tiers.

Having said all of that, the new Diamond and Diamond Honors tiers do not appear very compelling. I am not sure that 'lifestyle' benefits alone will be enough to make the program look compelling for those with more than $1MM to park somewhere. I am quite surprised that they didn't do some kind of additional credit card bonus for those tiers. Even a bump to 80% bonus would be tangible. In any case, I see this as something they are likely to mess with over time and that could be good or bad.

mia

I expect that with larger amounts of money the program is less important in attracting or retaining customers. The core financial performance is what matters.

LAX

True to a certain extent. For those that "park" money in index funds, it really doesn't matter whether that $1M is at Merrill/BofA, CS, Chase/JPM, Citi, etc. Then, the benefits associated with parking those funds would matter. Perhaps Merrill is not trying to attract/retain these types.

LAX

logex

Looks like the main benefit of having $1 million with BoA is that initiating outgoing money transfers will probably be free.

The diamond programs look to be more about status than tangible benefits.

High Technology

The way I read this is that the Premium Rewards Elite credit card is included as a benefit, so I presume that should mean without annual fee.

While not much a big benefit beyond the Premium Rewards card, it's a potential extra if it gives some extra travel rebates ($300? vs. $100), $150 Lifestyle benefit, and Priority Pass Select without the annual fee. For those not yet using the BOA Premium Rewards card, it will look like a great card (2.625%/3.500% cash back, plus the other benefits). Don't get me wrong, I wouldn't put $1M somewhere for a credit card, a $550 value is 0.055% of $1M.

FWIW, it would have been smarter if they reversed the lifestyle benefit amount of $300 with the airline incidental benefit of $150. It's not just the FT'ers that are already elite on their airline of choice, but many mass affluent individuals (who are the primary audience for BOA/Merrill Edge Diamond level) are already too. I struggle to spend my $100 every year as I don't pay for bags and usually don't have to pay for drinks on my airline of choice. I'm not sure if I could spend $300 if that is what I had to available to me.

lairdb

I've let inertia keep most of my (market index oriented) holdings at Merrill, and was hopeful that the new tier would include greater bonus. Now that BofA has prompted us all to look, what are your "somewhere else with better perks"?

G2244

Sometimes it is the little things and in this case BoA is its own worst enemy. I have mentioned this in other threads but will point out again since it is really so absurd. Even for Platinum Honors, BoA charges a $3 fee for outgoing ACH transfers from their checking account (which they require you to have to be in the program). So 'somewhere else with better perks' could be considered pretty much any other institution that offers a relationship level account. I don't know of any others dinging their high end customers in such a manner. There are lots of things that BoA could improve but with features like that, doing my primary banking with them is really a non-starter.

logex

For day-to-day banking Chase blows BoA out of the water. Better customer service, dedicated point person at your local branch, more branches (none of these weird fancy-ATM-styled "branches" where you can't even deposit a check, better app with check deposits always working, I could probably go on...). It's crazy that you can send free wires from Chase but BoA charges $3 for an ACH. AFAIK the only worthwhile BoA benefit is the 2.62% cash back you get from Premium Rewards + Honors status.

High Technology

I agree the ACH thing is nuts. I have always done ACH pulls to BOA, but several months ago I needed to push money to another bank. When I saw the fee, I stopped and even called them and asked, and the first rep told me not to worry since the fee would be rebated. Needless to say it wasn't, and I was pretty surprised.

I called back out of principle -- spoke to a very nice person who told me they could rebate those fees (and also mentioned wires), up to three months after they post. I was a little surprised at that too, but it's not worth my time to make a call for things like that. I just want to know what I'm entitled to, and I can work around that. It's really bizarre that they charge for outgoing ACH when I could pull the money from another bank, or send to anyone else via Zelle form BOA or use another third-party service for free.

lairdb

Yep -- I rolled my eyes when I saw that. For a minute I thought they were charging for all ACH activity, but it appears to be just for ACH push. I can live with that, but it is one more burr under the saddle.

...and that's likely exactly what they want -- to nudge you toward Zelle. (Good luck with that.)

For general customer service (and app check deposits, etc.), BofA has always been okay for me. I have a reflexive fear that a "dedicated person" means I don't get service unless that particular person happens to be around and working (vs. a call center that's always there.) That 2.62% is pretty juicy, but if I can have that for $100k and have other perks for moving balances elsewhere, I'm up for that.

zorbachs

I've never had any issues with BOA's platinum honors CS. The rep has always been US based and helped me immediately. Maybe Chase PC is the same way, but I wouldn't know.

mtofell

^^I totally agree with this. My wife was with B/A and I am a Chase fan (married 15 years but have totally separate financial "worlds") and I can't believe the crap she had to endure. She finally listened to me and moved over the Chase and has been super happy. I don't have the dedicated banker but the people at my local branch are AMAZING at remembering me and getting things done. The online interface, app and credit card offerings are all first-rate too.

logex

Just looking at the ML website it looks like new tiers come out on 11/12 "or such later date as we may provide you notice of" which is when the ML preferred rewards for wealth management is discontinue--
https://www.ml.com/solutions/preferr...anagement.html
fine print 1)
"As of November 12, 2021, or such later date as we may provide you notice of, the Preferred Rewards for Wealth Management program will be discontinued. If you are enrolled in the program on that day, your enrollment will be automatically transferred to the new Bank of America Preferred Rewards program. The new program will be expanded by adding two new tiers for clients with a qualifying balance of $1,000,000 or more. If your three month combined average daily balance is below $1,000,000 on the third business day of the month in which Preferred Rewards for Wealth Management discontinues, you will transition to the Preferred Rewards Platinum Honors tier. .."