Are you ready to unlock a world of enhanced banking benefits and rewards with Bank of America? The Preferred Rewards program is designed to do just that, offering a tiered system that rewards your loyalty and financial relationship with Bank of America and Merrill. Whether you're a seasoned investor or just starting to build your wealth, understanding how to qualify can significantly boost your banking experience. Let's dive in and see how you can become a Preferred Rewards member!
How to Qualify for Bank of America Preferred Rewards: A Step-by-Step Guide
Qualifying for Bank of America Preferred Rewards is all about building a strong financial relationship with the bank and its Merrill investment arm. It's a tiered program, meaning the more you consolidate your assets, the more benefits you unlock.
Step 1: Establish Your Foundational Relationship – Open an Eligible Checking Account!
- This is the absolute first and most crucial step! You cannot qualify for Bank of America Preferred Rewards without an eligible personal checking account with Bank of America. If you don't have one already, this is where you start.
- Action: Head to a Bank of America branch, visit their website, or use their mobile app to open a qualifying personal checking account. Make sure it's an eligible account; typically, most standard checking accounts will qualify.
Step 2: Understand the Core Qualification: Combined Balance Thresholds
The heart of the Preferred Rewards program lies in your "combined balance." This isn't just about what's in your checking account. It's the total of your qualifying balances across various Bank of America and Merrill accounts.
-
What Counts Towards Your Combined Balance?
- Bank of America Deposit Accounts: This includes your checking accounts, savings accounts, money market savings accounts, and Certificates of Deposit (CDs).
- Merrill Investment Accounts: This is a big one! Your Merrill Edge® and Merrill Lynch® investment accounts, including IRAs (Individual Retirement Accounts), Cash Management Accounts (CMAs), and even 529 college savings plans, all contribute to your combined balance.
- Important Note: You don't necessarily need to open new accounts to qualify. You can often roll over existing IRAs or investment accounts from other firms to Merrill to quickly boost your qualifying balance.
-
The "Three-Month Combined Average Daily Balance" Rule:
- Bank of America calculates your eligibility based on your three-month combined average daily balance. This means they look at the average amount of money you've had across all your qualifying accounts over the past three calendar months.
- Tip: If you just moved a large sum of money, it will take a few months for your average daily balance to reflect that increase and push you into a higher tier.
Step 3: Meet the Minimum Balance for Your Desired Tier
The Preferred Rewards program has five distinct tiers, each offering progressively better benefits. To qualify for a specific tier, you need to meet its minimum three-month combined average daily balance:
-
Gold Tier:
- Requirement: $20,000 to < $50,000
- This is the entry point. Even if you have various smaller accounts, combining them could easily get you to this level.
-
Platinum Tier:
- Requirement: $50,000 to < $100,000
- A significant step up, offering enhanced benefits.
-
Platinum Honors Tier:
- Requirement: $100,000 to < $1,000,000
- This tier offers a substantial boost in rewards and benefits, making it a popular goal for many.
-
Diamond Tier:
- Requirement: $1,000,000 to < $10,000,000
- Reserved for high-net-worth individuals, this tier provides some of the most premium perks.
-
Diamond Honors Tier:
- Requirement: $10,000,000 or more
- The pinnacle of the program, offering unparalleled benefits and exclusive services.
Step 4: Enroll in the Preferred Rewards Program
Meeting the balance requirements doesn't automatically enroll you. You need to take one final step.
- How to Enroll:
- Online Banking: The easiest way to enroll is through your Bank of America Online Banking account. Look for the "Preferred Rewards" section or a prompt to enroll.
- Mobile Banking App: You can also enroll via the Bank of America mobile app.
- In-Branch or By Phone: If you prefer, you can visit a Bank of America financial center or call their customer service to enroll.
- Good News: There are no fees to join or participate in the Preferred Rewards program.
Step 5: Enjoy and Maintain Your Benefits!
Once you're enrolled and meet the qualifications, your benefits will typically become active within 30 days of enrollment.
- Automatic Tier Upgrades: As your combined average daily balance grows and reaches the threshold for a higher tier, Bank of America will automatically upgrade you. You don't need to re-enroll or apply.
- Maintaining Your Tier: Bank of America reviews your qualification periodically. If your balances drop below your current tier's requirement, you usually get a grace period (often three months) to bring them back up before you lose your benefits. If you requalify within 24 months, your membership is often automatically reinstated.
Understanding the Perks: What You Get with Preferred Rewards
The benefits of Preferred Rewards vary by tier, but generally include:
Enhanced Credit Card Rewards:
- One of the most popular benefits! Members receive a bonus on the rewards earned with eligible Bank of America credit cards.
- Gold: 25% rewards bonus
- Platinum: 50% rewards bonus
- Platinum Honors, Diamond, and Diamond Honors: 75% rewards bonus
- Example: If your credit card earns 1.5% cash back, as a Platinum Honors member, you'd effectively earn 1.5% + (75% of 1.5%) = 2.625% cash back!
Interest Rate Boosts on Savings Accounts:
- If you have a Bank of America Advantage Savings account, you can receive an interest rate booster.
- Gold: 5% interest rate boost
- Platinum: 10% interest rate boost
- Platinum Honors, Diamond, and Diamond Honors: 20% interest rate boost
Loan Discounts:
- Mortgage Origination Fee Reduction: Receive a reduction on your mortgage origination fee.
- Gold: $200
- Platinum: $400
- Platinum Honors: $600
- Higher tiers may receive interest rate reductions on mortgages instead.
- Home Equity Interest Rate Discount: Get a discount on interest rates for home equity lines of credit (HELOCs).
- Gold: 0.125%
- Platinum: 0.250%
- Platinum Honors: 0.375%
- Higher tiers receive even greater discounts.
- Auto Loan Interest Rate Discount: A reduced interest rate on Bank of America auto loans.
- Discounts typically range from 0.25% to 0.50% based on your tier.
Waived Banking Fees:
- Say goodbye to many common banking fees!
- No monthly maintenance fees on up to four eligible checking and four savings accounts.
- No fees on certain services like incoming wire transfers, stop payments, and check orders (may vary by tier).
- Free non-Bank of America ATM transactions (number varies by tier, unlimited for higher tiers).
Other Valuable Perks:
- Merrill Guided Investing Discounts: Reduced annual fees on Merrill Guided Investing accounts.
- Foreign Currency Exchange Rate Discount: A discount on online and mobile foreign currency orders.
- Dedicated Customer Service: Higher tiers may get access to a dedicated client service team.
FAQs: Your Quick Guide to Preferred Rewards
Here are 10 frequently asked questions about Bank of America Preferred Rewards, starting with "How to":
How to Check My Preferred Rewards Tier?
You can easily check your current Preferred Rewards tier by logging into your Bank of America Online Banking account or using the Bank of America Mobile Banking app. Your status will typically be displayed prominently.
How to Increase My Preferred Rewards Tier?
To increase your tier, you need to increase your three-month combined average daily balance across your eligible Bank of America deposit and Merrill investment accounts. This can be done by consolidating funds from other institutions, saving more, or investing additional capital.
How to Enroll in Preferred Rewards?
You can enroll in Preferred Rewards through Bank of America Online Banking, the mobile app, by visiting a financial center, or by calling customer service. You must have an eligible Bank of America personal checking account and meet the minimum balance requirement to enroll.
How to Know Which Accounts Qualify for Preferred Rewards?
Eligible accounts include Bank of America checking, savings, money market, and CD accounts, as well as Merrill Edge and Merrill Lynch investment accounts, including IRAs, Cash Management Accounts, and 529 plans.
How to Get the Credit Card Rewards Bonus?
Once you are an enrolled Preferred Rewards member, the bonus on eligible Bank of America credit cards is automatically applied to your earnings. The percentage of the bonus depends on your Preferred Rewards tier.
How to Keep My Preferred Rewards Benefits if My Balance Drops?
Bank of America typically provides a grace period (often three months) if your combined balance falls below your current tier's requirement. If you bring your balance back up within this period, you retain your benefits.
How to Qualify for Preferred Rewards for Business?
There's a separate Preferred Rewards for Business program. To qualify, you need an eligible Bank of America business checking account and a three-month combined average daily balance of $20,000 or more in qualifying Bank of America business deposit and Merrill business investment accounts.
How to Access Lifestyle Benefits (if applicable)?
Higher tiers of Preferred Rewards, particularly Diamond and Diamond Honors, may offer exclusive lifestyle benefits. Details on how to access these are usually communicated directly to eligible members or found within your online Preferred Rewards benefits dashboard.
How to Understand the Three-Month Average Daily Balance?
This means Bank of America takes the average of your total qualifying balances at the end of each day for the past three calendar months. A sudden large deposit will take time to fully impact your three-month average.
How to Combine Balances from Different Institutions?
To combine balances, you would initiate transfers or rollovers of funds from your accounts at other banks or investment firms into your eligible Bank of America deposit accounts or Merrill investment accounts. Consult with Bank of America or Merrill advisors for guidance on this process, especially for investment transfers.
