Master Your Money: A Comprehensive Guide to Using Bank of America Cash Rewards
Hey there, savvy spender! Ever wondered how to truly maximize the cash back you earn with your Bank of America credit card? You're in the right place! This guide will walk you through everything you need to know about the Bank of America Cash Rewards program, from earning those valuable rewards to redeeming them for what you want. Let's get started on unlocking the full potential of your card!
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| How To Use Bank Of America Cash Rewards |
Understanding Your Bank of America Cash Rewards Card
Before we dive into the "how-to," let's quickly clarify what kind of Bank of America Cash Rewards card you might have, as this can affect your earning strategy. Bank of America primarily offers two popular cash back cards:
- Bank of America® Customized Cash Rewards credit card: This card is a favorite because it allows you to choose a 3% cash back category (and for the first year, some offers provide 6% cash back in that category!). You also get 2% cash back at grocery stores and wholesale clubs, and 1% on all other purchases. The 3% and 2% categories typically have a quarterly spending cap.
- Bank of America® Unlimited Cash Rewards credit card: This card offers a simpler, flat-rate approach. You earn an unlimited 1.5% cash back on all purchases (with some introductory offers providing 2% for the first year). This is great if you prefer a "set it and forget it" approach and don't want to track categories.
For the purpose of this guide, we'll primarily focus on the more dynamic Bank of America® Customized Cash Rewards credit card, as it offers more opportunities for strategic earning. However, many of the redemption steps apply to both.
Step 1: Choosing and Optimizing Your 3% Cash Back Category (Customized Cash Rewards)
This is where the real fun begins for Customized Cash Rewards cardholders! Your ability to select a bonus category is a powerful tool to boost your earnings.
Sub-heading 1.1: Understanding the Categories
Bank of America offers a selection of categories for your 3% cash back (or 6% introductory rate). These typically include:
- Gas & EV Charging Stations
- Online Shopping (including cable, internet, phone plans, and streaming)
- Dining
- Travel
- Drug Stores & Pharmacies
- Home Improvement & Furnishings
It's crucial to understand that these categories are based on Merchant Category Codes (MCCs). This means a merchant's primary line of business dictates how your purchase is categorized. For example, buying groceries at a gas station might not count as "grocery" for rewards purposes.
QuickTip: Skim the ending to preview key takeaways.
Sub-heading 1.2: Strategizing Your Category Choice
This is your moment to shine as a smart spender!
- Analyze Your Spending Habits: Look at your past credit card statements. Where do you spend the most money each month or quarter? Are you planning any major purchases soon, like home renovations or a trip?
- Match to a Category: If you consistently spend a lot on dining out, then "Dining" is a clear winner. If you're furnishing a new apartment, "Home Improvement & Furnishings" would be excellent.
- Think Seasonally/Quarterly: The ability to change your category monthly is a huge advantage.
- Example: In Q3 (July-September), you might set "Travel" if you're planning a summer vacation. In Q4 (October-December), you might switch to "Online Shopping" for holiday gifts.
- Consider the $2,500 Quarterly Cap: Remember that the 3% (or 6%) and 2% cash back rates apply to the first $2,500 in combined purchases each quarter in those categories. After that, you'll earn 1%. Plan your larger purchases accordingly to maximize your bonus earnings within this cap.
Sub-heading 1.3: How to Change Your Category
Changing your chosen category is straightforward:
- Log in to Bank of America Online Banking: Go to the official Bank of America website and log in to your account.
- Navigate to Your Credit Card Details: Find your Bank of America Customized Cash Rewards card and click on it.
- Locate the Category Change Option: Look for a section related to "Rewards" or "Manage My Card" where you'll find the option to change your cash back category. This is typically very intuitive and clearly labeled.
- Select Your New Category: Choose the category that best suits your upcoming spending.
- Confirm Your Choice: Double-check your selection and confirm the change.
Pro-Tip: You can usually change your category once per calendar month. If you don't change it, your current selection will remain.
Step 2: Maximizing All Your Purchases
While the 3% category is a star, don't forget the other ways your card earns cash back!
Sub-heading 2.1: Leveraging the 2% Grocery & Wholesale Club Rate
- Grocery Store Runs: This is a fantastic everyday earning opportunity. Make sure your primary grocery shopping happens with this card.
- Wholesale Club Purchases: If you're a member of Costco, Sam's Club, or similar, use your Customized Cash Rewards card for those bulk buys. The 2% applies here too!
Sub-heading 2.2: Earning 1% on Everything Else
Even if a purchase doesn't fall into your bonus categories, you still earn a solid 1% cash back. Make it a habit to use your Bank of America Cash Rewards card for all your general spending to accumulate rewards consistently.
QuickTip: Read again with fresh eyes.
Sub-heading 2.3: Bank of America Preferred Rewards® Program
This is a game-changer if you have significant assets with Bank of America or Merrill.
- What it Is: Preferred Rewards is a loyalty program that offers enhanced benefits, including a cash back boost on your credit card earnings.
- How it Works: Based on your combined balances in eligible Bank of America banking and Merrill investment accounts, you can qualify for different tiers (Gold, Platinum, Platinum Honors). Each tier offers a percentage increase on your cash back earnings:
- Gold: 25% boost
- Platinum: 50% boost
- Platinum Honors: 75% boost
- Example: If you're a Platinum Honors member, your 3% category effectively becomes 5.25% cash back, your 2% becomes 3.5%, and your 1% becomes 1.75%! This is a massive boost and should be a strong consideration for any loyal Bank of America customer.
- Enrollment: If you qualify, ensure you're enrolled in the Preferred Rewards program to start enjoying these amplified rewards.
Step 3: Tracking Your Cash Rewards
Knowledge is power, especially when it comes to your rewards!
Sub-heading 3.1: Online Banking Portal
- Log In Regularly: Make it a habit to log into your Bank of America online banking portal.
- Find Your Rewards Section: There's usually a dedicated "Rewards & Deals" tab or a section within your credit card details where you can see your accumulated cash back.
- View Details: You can typically view your pending and available rewards balance, as well as a history of your earnings. This helps you monitor your progress towards redemptions.
Sub-heading 3.2: Mobile Banking App
- Convenience at Your Fingertips: The Bank of America Mobile Banking app is incredibly user-friendly for tracking rewards on the go.
- "My Rewards" Section: Look for a "My Rewards" or similar option within the app.
- Quick Check: It's a great way to quickly see how much cash back you've accumulated before making a purchase decision.
Step 4: Redeeming Your Bank of America Cash Rewards
This is the moment you've been waiting for – turning your hard-earned cash back into real value! Bank of America offers several flexible redemption options.
Sub-heading 4.1: Accessing Redemption Options (Online Banking)
- Log in to Online Banking: As before, start by logging into your Bank of America online banking account.
- Go to "Rewards & Deals": Click on the "Rewards & Deals" tab.
- Select Your Credit Card: If you have multiple Bank of America cards, choose the Cash Rewards card whose earnings you wish to redeem. You'll usually see an "Available Rewards" button or section.
- Choose Your Redemption Method: You'll be presented with various options.
Sub-heading 4.2: Popular Redemption Methods
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Cash Back as a Statement Credit:
- Benefit: This is the simplest and most common redemption. Your cash back is applied directly to your credit card statement, effectively reducing your balance.
- Minimums: Often, there's no minimum amount for this option, making it very flexible.
- How: Select "Statement Credit" and choose the amount you wish to redeem (e.g., "Redeem All" or a specific amount).
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Cash Back as a Deposit to a Bank of America Checking or Savings Account:
- Benefit: Get actual cash deposited into your linked Bank of America account. This gives you direct access to the funds.
- Minimums: There might be a minimum redemption amount (e.g., $25) for this option.
- How: Select the "Deposit to Bank Account" option, choose your preferred checking or savings account, and enter the redemption amount.
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Credit to an Eligible Merrill Account (including 529 accounts):
- Benefit: A fantastic option for those who invest with Merrill. You can put your cash back directly into your investment accounts, potentially growing your wealth.
- Minimums: There might be a minimum, especially for 529 contributions (e.g., $25).
- How: Select this option and choose the Merrill account you wish to credit.
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Gift Cards:
- Benefit: Sometimes, gift card redemptions offer a slightly higher value per point, or they can be a convenient way to treat yourself or others.
- Consideration: Ensure the gift card value truly exceeds the cash back value you'd get otherwise, and that you'll use the gift card fully.
- How: Browse the available gift card options and select the one you desire.
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Pay for Purchases at Amazon.com or Checkout with PayPal (Enrollment Required):
- Benefit: For ultimate convenience, you can link your Bank of America Cash Rewards card to your Amazon or PayPal account and use your rewards directly at checkout.
- Consideration: While convenient, sometimes the value per point might be slightly less than a direct cash redemption. Always check the conversion rate.
- How: You'll need to link your card to these platforms and select your rewards as a payment method at checkout.
Sub-heading 4.3: Setting Up Automatic Redemption
For those who prefer a hands-off approach, Bank of America allows you to set up automatic redemptions:
- Select Auto Redemption: Within the redemption section, look for an "Auto Redemption" option.
- Choose Your Account: Select the Bank of America checking or savings account where you want your cash back to be deposited automatically.
- Minimum Threshold: You'll typically need to reach a minimum cash back amount (e.g., $25) for automatic redemption to trigger.
This ensures your rewards are always working for you, even if you forget to manually redeem them!
Tip: Revisit challenging parts.
Step 5: Responsible Card Usage
To truly benefit from your Bank of America Cash Rewards, responsible credit card management is key.
Sub-heading 5.1: Pay Your Balance in Full
- Avoid Interest: Cash back rewards are only truly rewarding if you're not paying interest on your purchases. Always aim to pay your statement balance in full each month.
- The APR on cash advance transactions is generally high, and interest accrues immediately.
- Interest rates on purchases can range from 18.24% to 28.24% (variable) after any introductory APR period.
Sub-heading 5.2: Stay Within Your Credit Limit
- Maintain Good Credit: Staying within your credit limit helps maintain a healthy credit utilization ratio, which is good for your credit score.
- Avoid Fees: Going over your limit can sometimes result in fees.
Sub-heading 5.3: Monitor Your Statements
- Catch Errors: Regularly review your statements for any unauthorized transactions or billing errors.
- Track Spending: This also helps you keep track of your spending in your bonus categories.
Conclusion
The Bank of America Cash Rewards card, especially the Customized Cash Rewards version, is a powerful tool for earning valuable cash back on your everyday spending. By strategically choosing your bonus categories, maximizing all your purchases, and responsibly managing your account, you can unlock significant savings and make your money work harder for you. Now go forth and earn those rewards!
10 Related FAQ Questions
How to choose the best 3% cash back category for my Bank of America Customized Cash Rewards card?
The best category depends on your spending habits. Review your past purchases to identify where you spend the most (e.g., dining, online shopping, gas). You can change your category monthly, so tailor it to your current needs or planned large purchases.
How to redeem Bank of America Cash Rewards as a statement credit?
Log in to Bank of America Online Banking, go to the "Rewards & Deals" tab, select your Cash Rewards card, and choose the "Statement Credit" option. You can typically redeem any amount.
How to deposit Bank of America Cash Rewards directly into my checking account?
After logging into online banking and navigating to your rewards, select the option to deposit cash back to a Bank of America checking or savings account. You may need a minimum of $25 for this option.
QuickTip: Focus on one line if it feels important.
How to set up automatic redemption for my Bank of America Cash Rewards?
Within the rewards redemption section of your online banking or mobile app, look for an "Auto Redemption" setting. You can link it to a Bank of America checking or savings account, and it will typically trigger once your rewards reach a set minimum (e.g., $25).
How to check my Bank of America Cash Rewards balance?
You can check your rewards balance by logging into Bank of America Online Banking and looking under the "Rewards & Deals" tab, or by using the Bank of America Mobile Banking app in the "My Rewards" section.
How to get more cash back with Bank of America Preferred Rewards?
If you have eligible Bank of America banking and Merrill investment accounts with combined balances, you can enroll in the Preferred Rewards program. This can boost your cash back earnings by 25%, 50%, or even 75% depending on your tier.
How to avoid paying interest on my Bank of America Cash Rewards card?
Always pay your full statement balance by the due date each month. This way, you won't incur any interest charges, and your cash back earnings will be pure profit.
How to maximize the $2,500 quarterly cap on Bank of America Customized Cash Rewards?
Plan your spending in your chosen 3% category and at grocery stores/wholesale clubs. If you anticipate exceeding the $2,500 combined quarterly limit, consider using a different card for additional spending in those categories once the cap is met, or simply accept the 1% rate after the cap.
How to use Bank of America Cash Rewards to pay for Amazon purchases?
You can link your Bank of America Cash Rewards card to your Amazon account through Amazon's payment settings. Once linked, you can choose to use your cash rewards as a payment method at checkout.
How to contact Bank of America customer service about my cash rewards?
You can find customer service contact information on the back of your credit card. Alternatively, log in to your Bank of America online banking account for secure messaging options or to find relevant phone numbers for rewards inquiries.
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