Do you want to elevate your banking experience and unlock a world of exclusive benefits? Then you're in the right place! Becoming a Bank of America Preferred Rewards member can significantly enhance your financial journey, offering everything from boosted credit card rewards to banking fee waivers and even discounts on loans.
But how exactly do you achieve this coveted status? It's simpler than you might think, though it does require a certain level of financial commitment with Bank of America and Merrill. This comprehensive guide will walk you through every step of the process, ensuring you understand the requirements, the tiers, and most importantly, how to maximize your rewards. Let's get started!
Step 1: Understanding the Foundation – What is Bank of America Preferred Rewards?
Before diving into the specifics of qualifying, let's establish a clear understanding of what the Bank of America Preferred Rewards program is all about. It's a loyalty program designed to reward clients who maintain significant combined balances across their Bank of America deposit accounts and Merrill investment accounts.
The core idea is simple: the more assets you hold with Bank of America and Merrill, the higher your Preferred Rewards tier, and the more valuable your benefits become. This isn't just about a single account; it's about consolidating your financial life with one institution to unlock a suite of perks.
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| How To Be Bank Of America Preferred Rewards |
Sub-heading: Why Should You Care About Preferred Rewards?
- Enhanced Rewards: This is often the biggest draw. You can significantly boost the rewards you earn on eligible Bank of America credit cards.
- Banking Fee Waivers: Say goodbye to monthly maintenance fees on many checking and savings accounts.
- Loan Discounts: Get preferential rates on auto loans and even mortgage origination fees.
- Investment Perks: Enjoy discounts on Merrill Guided Investing advisory fees.
- ATM Fee Refunds: Forget about those pesky out-of-network ATM fees.
These benefits can add up to substantial savings and increased earning potential over time, making the effort to qualify well worth it for many individuals.
Step 2: Meeting the Core Eligibility Requirements
To even begin your journey to Preferred Rewards status, you need to fulfill two fundamental criteria. Think of these as your entry ticket to the program.
Tip: Take mental snapshots of important details.
Sub-heading: Requirement 1: An Eligible Bank of America Personal Checking Account
This is non-negotiable. You must have an active, eligible personal checking account with Bank of America. If you don't already have one, this is your first concrete action item.
- Action: Open a Bank of America personal checking account if you don't already have one. Popular options include Bank of America Advantage Plus Checking or Bank of America Advantage Relationship Banking.
Sub-heading: Requirement 2: The Three-Month Combined Average Daily Balance
This is where the financial commitment comes in. You need to maintain a three-month combined average daily balance of at least $20,000 across your qualifying Bank of America deposit accounts and/or Merrill investment accounts.
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What counts:
- Bank of America checking accounts
- Bank of America savings accounts
- Bank of America money market accounts
- Bank of America CDs (Certificates of Deposit)
- Merrill investment accounts (including Merrill Edge® and Merrill Lynch® brokerage accounts, IRAs, and 529 plans)
- Revocable grantor trust accounts held at Bank of America or Merrill.
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What generally doesn't count: Business accounts (though there's a separate Preferred Rewards for Business program), and certain other specialized accounts.
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Understanding "Three-Month Combined Average Daily Balance": This isn't just about having $20,000 in your account for one day. Bank of America looks at the average amount of money you've held with them and Merrill over the past three months. So, consistency is key. If your balance fluctuates, ensure your average stays above the minimum threshold.
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Action: Consolidate your funds. Consider transferring money from other banks or investment firms into your Bank of America and Merrill accounts to meet this balance requirement. This could include emergency funds, savings for a large purchase, or even rolling over existing IRAs or 401(k)s.
Step 3: Enrolling in the Preferred Rewards Program
Once you've met the eligibility criteria, you're not automatically enrolled. You need to formally join the program.
Sub-heading: The Simple Enrollment Process
Enrollment is straightforward and typically done online.
- Action: Log in to your Bank of America Online Banking account.
- Action: Navigate to the "Preferred Rewards" section or look for prompts about joining the program.
- Action: Follow the on-screen instructions to enroll. It's usually a quick click to confirm your eligibility and agree to the terms.
Note: If you're a new checking account holder and meet the balance requirement within 30 days of opening, Bank of America may automatically enroll you. However, it's always best to proactively enroll to ensure you don't miss out on benefits.
Tip: Reread if it feels confusing.
Step 4: Understanding the Preferred Rewards Tiers
The magic of Preferred Rewards truly unfolds as your combined balance grows. The program is structured into several tiers, each offering progressively more valuable benefits.
Sub-heading: The Tiers and Their Requirements (Based on 3-Month Average Combined Balance)
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Gold Tier:
- Requirement: $20,000 to < $50,000
- Key Benefits (examples):
- 25% rewards bonus on eligible Bank of America credit cards.
- 5% interest rate boost on a Bank of America Advantage Savings account.
- 1% exchange rate discount for online and mobile foreign currency orders.
- Discounts on Merrill Guided Investing annual advisory fees.
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Platinum Tier:
- Requirement: $50,000 to < $100,000
- Key Benefits (examples):
- 50% rewards bonus on eligible Bank of America credit cards.
- 10% interest rate boost on a Bank of America Advantage Savings account.
- 1.5% exchange rate discount on mobile and online foreign currency orders.
- Higher discounts on Merrill Guided Investing annual advisory fees.
- No-fee transactions at non-Bank of America ATMs (with refunds for operator fees).
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Platinum Honors Tier:
- Requirement: $100,000 to < $1,000,000
- Key Benefits (examples):
- 75% rewards bonus on eligible Bank of America credit cards. This is a significant jump and often the target for many members.
- 20% interest rate boost on a Bank of America Advantage Savings account.
- 2% exchange rate discount on mobile and online foreign currency orders.
- Maximized discounts on Merrill Guided Investing annual advisory fees.
- Enhanced auto loan interest rate discounts.
- Waived mortgage origination fees or percentage off your mortgage APR.
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Diamond Tier:
- Requirement: $1,000,000 to < $10,000,000
- Key Benefits (examples): Continues to offer the 75% credit card rewards bonus and often includes additional premium benefits like enhanced wealth management services and exclusive access.
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Diamond Honors Tier:
- Requirement: $10,000,000 or more
- Key Benefits (examples): The highest level of benefits, including the 75% credit card rewards bonus and the most comprehensive suite of premium services and perks.
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Action: Review the tier requirements and benefits carefully. Set a target tier based on your financial capacity and desired benefits.
Step 5: Maintaining and Maximizing Your Benefits
Once you're in the program, it's crucial to understand how to keep your benefits and how to get the most out of them.
Sub-heading: Maintaining Your Tier Status
Bank of America reviews your combined average daily balance regularly (typically monthly) to determine your tier.
- Grace Period: If your balance temporarily falls below your current tier's threshold, you generally have a three-month grace period to bring it back up before your tier status is downgraded.
- Annual Review: Your membership status is reviewed annually. As long as you maintain the required combined average daily balance, your benefits will continue.
Sub-heading: Strategies for Maximizing Your Preferred Rewards
- Consolidate Your Assets: This is the most direct way to move up tiers. Transfer savings, investments, and even retirement accounts (like IRAs) from other institutions to Bank of America and Merrill.
- Utilize Eligible Credit Cards: If you have Bank of America credit cards, ensure they are eligible for the Preferred Rewards bonus. The rewards boost can significantly increase your earnings. For example, a 1.5% cash back card with a 75% Preferred Rewards bonus becomes a 2.625% cash back card!
- Open the Right Accounts:
- For savings interest rate boosts, make sure you have a Bank of America Advantage Savings account.
- Explore Merrill Guided Investing for advisory fee discounts.
- Take Advantage of All Perks: Don't just focus on credit card rewards. Remember the ATM fee waivers, loan discounts, and other valuable benefits that can save you money.
- Monitor Your Balances: Regularly check your combined balance through online banking or the mobile app to ensure you're maintaining your desired tier or working towards a higher one.
Step 6: What to Do if You Don't Yet Qualify
If your current combined balance doesn't meet the $20,000 minimum, don't despair! You can still work towards it.
Sub-heading: Building Your Combined Balance
- Create a Savings Plan: Set a goal to save a certain amount each month and direct those funds into your Bank of America savings or Merrill investment accounts.
- Review Your Spending: Identify areas where you can cut back and reallocate those funds to your Bank of America/Merrill accounts.
- Explore Investment Options: If you have funds sitting idle in a low-interest savings account elsewhere, consider moving them to a Merrill investment account that counts towards your Preferred Rewards balance. Even a conservative investment strategy can help you reach the threshold faster.
- Consider Direct Deposit: If you haven't already, set up direct deposit of your paycheck into your Bank of America checking account to steadily increase your balance.
10 Related FAQ Questions
Here are some quick answers to common questions about Bank of America Preferred Rewards:
Tip: Train your eye to catch repeated ideas.
How to Qualify for Bank of America Preferred Rewards?
You qualify by having an active, eligible Bank of America personal checking account and a three-month combined average daily balance of $20,000 or more across your qualifying Bank of America deposit accounts and Merrill investment accounts.
How to Enroll in Bank of America Preferred Rewards?
Log in to your Bank of America Online Banking account, navigate to the Preferred Rewards section, and follow the simple enrollment instructions.
How to Check Your Bank of America Preferred Rewards Tier?
You can check your current Preferred Rewards tier and benefits by logging into your Bank of America Online Banking account or through the Bank of America mobile app.
How to Move to a Higher Bank of America Preferred Rewards Tier?
Increase your combined average daily balance across your Bank of America deposit accounts and Merrill investment accounts to meet the balance requirement for the next tier. Bank of America reviews balances monthly and will automatically upgrade your tier if you qualify.
How to Use Bank of America Preferred Rewards Credit Card Benefits?
The rewards bonus on eligible credit cards is typically applied automatically when your purchases post to your account. You'll see the increased cash back or points reflected in your rewards balance.
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How to Avoid Fees with Bank of America Preferred Rewards?
Being a Preferred Rewards member (Gold tier or higher) can waive monthly maintenance fees on up to four eligible checking and four savings accounts, and provide refunds for non-Bank of America ATM fees.
How to Count My Merrill Accounts Towards Preferred Rewards?
Most Merrill investment accounts, including Merrill Edge® and Merrill Lynch® brokerage accounts, IRAs, and 529 plans, count towards your combined average daily balance for Preferred Rewards.
How to Get Mortgage Discounts with Bank of America Preferred Rewards?
Members in higher tiers (typically Platinum Honors and above) can receive benefits like waived mortgage origination fees or a percentage off their mortgage APR when applying for a Bank of America mortgage.
How to Contact Bank of America Preferred Rewards Customer Service?
You can contact Bank of America customer service through their general banking numbers (e.g., 800.432.1000) or through the numbers listed on their website for specific account types. Their online banking portal also provides support options.
How to Keep My Preferred Rewards Benefits if My Balance Drops?
If your combined average daily balance falls below your tier's requirement, Bank of America typically provides a three-month grace period to restore your balance before your tier status is downgraded.
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