Do you want to unlock a world of exclusive benefits, better interest rates, and enhanced rewards from Bank of America? If you're a loyal Bank of America customer or considering consolidating your finances, then becoming a Bank of America Preferred Rewards member could be your ticket to a significantly improved banking experience. This comprehensive guide will walk you through every step, from understanding the program to maximizing your newfound perks.
The Gateway to Elevated Banking: Bank of America Preferred Rewards
The Bank of America Preferred Rewards program is designed to reward clients for their relationship with Bank of America and Merrill (their investing arm). It's not just about having an account; it's about consolidating your financial life with them to unlock increasingly valuable benefits across various banking and investment products. The more you keep with Bank of America and Merrill, the higher your tier, and the richer your rewards become!
Step 1: Are You Ready to Elevate Your Banking? Understanding the Core Requirements
Before diving into the specifics, let's see if you're poised to become a Preferred Rewards member. This is the crucial first step where you assess your current financial landscape and determine if this program aligns with your goals.
What You'll Need to Qualify:
- An Eligible Bank of America Personal Checking Account: This is the bedrock. You must have an active, eligible personal checking account with Bank of America. If you don't have one, opening one will be your very first practical step.
- Combined Balance Threshold: This is the key determinant of your Preferred Rewards tier. Your eligibility is based on a three-month combined average daily balance in your qualifying Bank of America deposit accounts (checking, savings, CDs) and/or Merrill investment accounts (Merrill Edge, Merrill Lynch, Merrill Guided Investing, 529 plans, IRAs, etc.).
- Think of it like this: Bank of America wants to reward you for bringing more of your financial assets under their roof.
Understanding the Tiers (and the Money Required!):
The Preferred Rewards program is structured into multiple tiers, each offering progressively better benefits. The higher your combined balance, the higher your tier.
- Gold Tier: Requires a three-month combined average daily balance of $20,000 to < $50,000.
- This is the entry point, offering a solid foundation of benefits.
- Platinum Tier: Requires a three-month combined average daily balance of $50,000 to < $100,000.
- You're leveling up, and so are your perks!
- Platinum Honors Tier: Requires a three-month combined average daily balance of $100,000 to < $1,000,000.
- This is where the benefits truly become significant.
- Diamond Tier: Requires a three-month combined average daily balance of $1,000,000 to < $10,000,000.
- For the truly high-net-worth individuals, offering premium benefits.
- Diamond Honors Tier: Requires a three-month combined average daily balance of $10,000,000 or more.
- The pinnacle of the program, with the highest level of rewards and personalized services.
Self-reflection: Take a moment to tally your existing balances across your Bank of America and Merrill accounts. Do you meet or anticipate meeting any of these thresholds? If not, consider how you might consolidate funds to reach a desired tier.
Step 2: Consolidating Your Funds – The Path to a Higher Tier
If you've assessed your current balances and need to increase them to reach a specific Preferred Rewards tier, this step is all about strategizing and executing that consolidation.
2.1 Gathering Your Assets:
- Bank of America Deposit Accounts:
- Checking Accounts: Your everyday funds.
- Savings Accounts: Emergency funds, short-term savings.
- Money Market Accounts: Often offer slightly higher interest rates than standard savings.
- Certificates of Deposit (CDs): Longer-term savings with fixed interest rates.
- Merrill Investment Accounts:
- Merrill Edge Accounts: For self-directed investing (stocks, ETFs, mutual funds).
- Merrill Lynch Accounts: For full-service financial advisory.
- Merrill Guided Investing Accounts: Robo-advisor services.
- IRAs (Individual Retirement Accounts): Traditional, Roth, SEP, SIMPLE IRAs.
- 529 Plans: Education savings plans.
- Cash Management Accounts (CMAs): Often part of investment accounts, holding cash.
- Revocable Grantor Trust Accounts.
2.2 Strategies for Increasing Your Combined Balance:
- Transferring Funds from External Banks: If you have significant savings or checking balances at other financial institutions, consider transferring them to your Bank of America checking or savings accounts.
- Consolidating Investment Accounts: If you have investment accounts (brokerage, IRAs) at other firms, explore rolling them over to Merrill Edge or Merrill Lynch. This can significantly boost your combined balance.
- Direct Deposit: Directing your paycheck or other regular income into your Bank of America checking account can steadily increase your average daily balance.
- Saving More Aggressively: Naturally, increasing your personal savings and directing them into your Bank of America or Merrill accounts will help you reach higher tiers.
Remember: The calculation is based on a three-month combined average daily balance. This means it's not just a snapshot of your balance on one day, but an average over a longer period. Consistent balances are key.
Step 3: Enrolling in the Preferred Rewards Program
Once you meet the eligibility criteria (an eligible checking account and the minimum combined balance), the enrollment process is typically straightforward.
3.1 Online Enrollment (Recommended):
- Log in to Bank of America Online Banking: This is usually the easiest and quickest way.
- Navigate to the Preferred Rewards Section: Look for a section related to "Preferred Rewards," "My Rewards," or "Benefits." It's often prominently displayed if you qualify.
- Follow the Enrollment Prompts: The system will guide you through the enrollment process. You may need to confirm your eligibility and agree to the program terms and conditions.
- Confirmation: You should receive a confirmation message that you have successfully enrolled.
3.2 Enrollment via Mobile Banking App:
- Open the Bank of America Mobile Banking App: Log in securely.
- Look for Preferred Rewards: Similar to online banking, there will likely be a dedicated section or prompt within the app.
- Complete Enrollment: Follow the on-screen instructions.
3.3 Enrollment by Phone or In-Person:
- Call Bank of America Customer Service: You can speak with a representative who can guide you through the enrollment process. The general customer service number for Bank of America is 1-800-432-1000. For Preferred Rewards specific inquiries, look for a dedicated line, or ask the general representative to transfer you.
- Visit a Bank of America Financial Center: A banking specialist at your local branch can assist you with enrollment and answer any questions you might have.
Important Note: Eligibility to enroll is generally available three or more business days after the end of the calendar month in which you satisfy the requirements. Benefits typically become effective within 30 days of your enrollment. If you're a new checking account holder and meet the balance requirement within 30 days of opening that account, you might be automatically enrolled sooner.
Step 4: Understanding and Maximizing Your Benefits
Congratulations! You're now a Bank of America Preferred Rewards member. This is where you truly start to reap the rewards. The benefits vary significantly by tier.
4.1 General Benefits Across Tiers (Increasing with Tier):
- Credit Card Rewards Bonus: This is one of the most popular benefits. You can earn a bonus on eligible Bank of America credit cards:
- Gold Tier: 25% rewards bonus
- Platinum Tier: 50% rewards bonus
- Platinum Honors, Diamond, and Diamond Honors Tiers: 75% rewards bonus
- This means your 1.5% cash back card becomes 1.875% (Gold), 2.25% (Platinum), or 2.625% (Platinum Honors+)!
- Interest Rate Boost on Savings: Get a boosted interest rate on your Bank of America Advantage Savings account.
- No Monthly Maintenance Fees: On up to four eligible checking and four savings accounts.
- Priority Service: Access to dedicated specialists for your product and service needs.
- Loan Interest Rate Discounts:
- Auto Loans: Discounts on new loan applications.
- Home Equity Lines of Credit (HELOCs): Interest rate discounts.
- Mortgage Origination Fee Reductions: Reduced fees on new purchase or refinance mortgages.
- Merrill Guided Investing Discounts: Annual program fee discounts.
- Foreign Currency Exchange Rate Discounts: For mobile and online orders, plus free standard shipping.
4.2 Tier-Specific Enhancements:
- Gold Tier: Your foundational benefits, including the 25% credit card bonus and basic fee waivers.
- Platinum Tier: Enhanced versions of Gold benefits, such as a 50% credit card bonus, more free non-Bank of America ATM transactions (12/year), and higher savings rate boosts.
- Platinum Honors Tier: A significant jump, with a 75% credit card bonus, unlimited no-fee non-Bank of America ATM transactions, and substantial discounts on loans and investing.
- Diamond and Diamond Honors Tiers: The highest levels offer the maximum credit card bonus (75%), even more significant loan discounts, and potentially exclusive financial advisory services.
Pro Tip: Regularly review your benefits! Bank of America may introduce new perks or adjust existing ones. Stay informed to ensure you're getting the most out of your membership.
Step 5: Maintaining Your Preferred Rewards Status
Once you've achieved a Preferred Rewards tier, maintaining it is generally straightforward, but it requires continued attention to your combined balances.
5.1 Annual Review and Grace Period:
- Bank of America periodically reviews your three-month combined average daily balance to determine your tier.
- Good news: Once you reach a specific status level, you typically maintain that Preferred Rewards tier status for a full year, even if your combined balance temporarily dips below the threshold.
- If, after a year, your balance falls below the required amount for your current tier, you usually get a three-month grace period to bring your balances back up before your tier status is downgraded.
5.2 Strategies for Maintaining Your Balance:
- Consistent Deposits: Continue to direct your income and savings into your Bank of America and Merrill accounts.
- Regular Monitoring: Periodically check your combined balances through online banking or the mobile app to ensure you're on track for your desired tier.
- Avoid Large Withdrawals (if possible): Significant withdrawals can impact your three-month average daily balance, so plan large expenditures carefully if maintaining a specific tier is a priority.
- Reinvest Dividends/Interest: If you have investment accounts with Merrill, consider reinvesting dividends and interest to help your balance grow organically.
The Long-Term Value
Becoming a Bank of America Preferred Rewards member is a strategic move for those who centralize their financial life with the institution. The cumulative benefits, from credit card rewards boosts to loan discounts and personalized service, can add up to significant savings and enhanced financial flexibility over time. It's about building a deeper relationship with your bank and being recognized and rewarded for that loyalty.
Frequently Asked Questions (FAQs)
Here are 10 related FAQ questions to help you further understand the Bank of America Preferred Rewards program:
How to check my Bank of America Preferred Rewards tier?
You can easily check your current Preferred Rewards tier by logging into your Bank of America online banking account or through the Bank of America mobile app. Your tier status is usually displayed prominently on your dashboard or within a dedicated "Preferred Rewards" section.
How to increase my Bank of America Preferred Rewards tier?
To increase your tier, you need to increase your three-month combined average daily balance in your eligible Bank of America deposit accounts and Merrill investment accounts to meet the threshold for the next higher tier. This can be done by transferring funds, consolidating external accounts, or saving more.
How to utilize the credit card rewards bonus from Preferred Rewards?
The credit card rewards bonus is automatically applied to eligible Bank of America credit cards. When you make purchases, your earned points or cash back will be boosted by your Preferred Rewards tier percentage (25%, 50%, or 75%). You don't need to do anything extra; it's an automatic enhancement.
How to know which accounts qualify for the combined balance?
Qualifying accounts include most personal checking accounts, savings accounts, money market accounts, CDs, and various Merrill investment accounts such as Merrill Edge brokerage accounts, IRAs, 529 plans, and Cash Management Accounts. Business accounts typically don't count towards personal Preferred Rewards.
How to enroll if I just opened a new Bank of America checking account?
If you open a new eligible Bank of America checking account and meet the minimum balance requirement ($20,000 for Gold) within 30 days of opening, you may be automatically enrolled. Otherwise, you can manually enroll online, through the app, or by contacting customer service once your three-month average daily balance meets the criteria.
How to get the mortgage or auto loan discounts?
To receive loan discounts, you typically need to apply for the new auto loan or mortgage directly through Bank of America while you are an enrolled Preferred Rewards member. The discount is then applied to your interest rate or origination fee, depending on your tier and the specific loan product.
How to contact Bank of America Preferred Rewards customer service?
For specific Preferred Rewards inquiries, you can often find a dedicated phone number within your online banking portal or on the Bank of America Preferred Rewards website. Otherwise, you can call Bank of America's general customer service line at 1-800-432-1000 and ask to be directed to a Preferred Rewards specialist.
How to maintain my Preferred Rewards tier if my balance drops?
Once you achieve a tier, you usually maintain it for a full year. If your combined average daily balance falls below the tier requirement after that year, you generally receive a three-month grace period to bring your balances back up to avoid a tier downgrade.
How to use the priority service benefit?
As a Preferred Rewards member, you gain access to dedicated phone lines or specialists. Look for a specific priority service number on the Preferred Rewards website or in your online banking account. When you call, identify yourself as a Preferred Rewards member to be routed to the appropriate team.
How to transfer investments from another firm to Merrill to qualify?
You can initiate an Automated Customer Account Transfer Service (ACATS) to transfer eligible investment accounts from another brokerage firm to Merrill. Contact Merrill Edge or Merrill Lynch directly, and they will guide you through the process, which typically involves filling out a transfer form and providing your existing account statements.
