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Key takeaways
- The Bank of America® Premium Rewards® credit card is not the strongest option for travel enthusiasts, but it benefits existing Bank of America customers in the Preferred Rewards program.
- The card has a $95 annual fee and offers unlimited 2X rewards on travel and dining purchases and 1.5X rewards on all other purchases.
- Preferred Rewards members can earn additional bonuses of up to 75 percent on rewards.
Choosing the right travel credit card can help you earn desirable perks and benefits to round out your travel adventures, both near and far. But you’ll want to consider all your options before fully committing to one, including the Bank of America® Premium Rewards® credit card.
The long and short of it is that the Bank of America Premium Rewards credit card doesn’t offer much for travel enthusiasts — except for existing Bank of America customers in the Preferred Rewards program. However, before you scratch this card off your list, we’ll break down some of its features and who it might make sense for. Here’s what you need to know about this card.
Quick card highlights
- Rewards rate: Unlimited 2X points on travel and dining purchases; Unlimited 1.5X points on all other purchases
- Welcome offer: 60,000 online bonus points after spending $4,000 on purchases in the first 90 days
- Annual fee: $95
- Regular APR: 21.24 percent to 29.24 percent (variable)
Additional card perks and benefits
- Up to $100 credit for Global Entry or TSA PreCheck. Covers your application fee for either program every four years (a value of $25 per year).
- Up to $100 incidental airline credit. Annual credit that covers eligible costs like baggage fees, seat upgrades, changes to your flight, lounge access or in-flight purchases like food and beverages.
- Visa Signature Luxury Hotel Collection. Offers access to perks like automatic room upgrades (when available), late checkout, complimentary Wi-Fi and breakfast, VIP Guest status as well as a $25 food and beverage credit.
You can use your Premium Rewards points for travel booked through the Bank of America Travel Center, gift cards or cash back in the form of a statement credit or a deposit into an eligible Bank of America or Merrill account.
“I use the rewards for statement credits and to buy stocks in a separate Merrill Lynch brokerage account,” says Bankrate senior editor Harlan Vaughn.
However, there are some notable omissions regarding additional protections and perks we usually see with travel cards. Notably, this card has no extended warranty and purchase protection, travel cancellation/delay insurance or rental car coverage. The lack of travel partners for transferable points is another disappointing omission as well.
When should you get the Bank of America Premium Rewards card?
With unlimited 2X rewards points on all travel dining purchases, this card is a strong option for those who only occasionally travel or specifically travel out of the U.S., thanks to its lack of a foreign transfer fee.
“The chip and PIN features make [the Bank of America Premium Rewards card] a great card for international travel,” says credit card writer Ryan Flanigan. “It’s my go-to card when I leave the country or need to make purchases that don’t fit into a bonus category.”
Additionally, this card does take on a different meaning if you’re part of the Bank of America Preferred Rewards program, which is an invite-only incentive program of Bank of America and its investment arm, Merrill. There’s no fee to join, and you stand to earn an additional 25 percent to 75 percent more in rewards for each dollar you spend on your Premium Rewards card. The only requirement is to maintain a pretty high balance in your checking, savings or investment account with the bank to qualify.
Vaughn explains how he reached Preferred Rewards status: “I had an old 401(k) that I rolled over into a traditional IRA with Merrill Lynch. I didn’t have a preference for the custodian, so it was an easy and automatic way to reach Platinum Honors status, which supercharges all the card’s earnings.”
There are additional benefits to being in the program, including savings boosters and discounts on loan products and brokerage services based on the tier you fall into. Below is a table that shows you how to qualify for each tier:
| Tier | Balance required | Bonus |
|---|---|---|
| Gold | $20,000 to $49,999 | 25% |
| Platinum | $50,000 to $99,999 | 50% |
| Platinum Honors | $100,000 to $999,999 | 75% |
| Diamond | $1,000,000 to $9,999,999 | 75% |
| Diamond Honors | $10 million or more | 75% |
Though you need to maintain a significant amount of money on deposit with the bank, you’ll find it can really boost your earnings with the Premium Rewards card. At the highest tier, you could earn up to 3.5X points on travel and dining purchases and up to 2.62X points on your everyday spending categories that don’t fit into the card’s bonus categories of dining and travel.
Even if you aren’t sure you can become a Preferred Rewards Member, the $100 yearly statement credits for airline incidentals are also a desirable perk you won’t want to overlook. Vaughn points out that, “The airline incidental credit works on any airline. I use it for seat upgrades and in-flight snacks. This benefit alone covers the card’s annual fee and makes it worth keeping long term.”
When should you not get the Bank of America Premium Rewards card?
If you’re looking within the mid-tier credit card space, this card doesn’t compete as well with similar travel cards in terms of earning and redeeming rewards. Additionally, the card perks and benefits are slim compared to its mid-tier counterparts.
“The biggest reason to avoid this card is if you are absolutely opposed to paying an annual fee. However, the card’s welcome offer is strong and recoups the annual fee for several years, so that’s worth considering,” says Vaughn.
All in all, the Bank of America Premium Rewards card will probably be more valuable if you’re a Preferred Rewards member, which at least lets you earn a boosted rewards rate on your spending in select categories. Even then, the redemption options are not as valuable as other cards with boosted redemptions for travel and travel partners, like the Chase Sapphire Preferred® Card or the Capital One Venture Rewards Credit Card.
The bottom line
While the Bank of America Premium Rewards credit card may not be the top choice for travel enthusiasts, it still offers a generous welcome bonus and decent rewards for travel and dining. Plus, its value is significantly boosted for those who are already Bank of America Preferred Rewards members.
If you are looking for a mid-tier travel credit card, this card may be worth considering, but keep in mind its limitations and the potential need for a Preferred Rewards membership to maximize its benefits.
The information about the Bank of America® Premium Rewards® credit card was last updated on Sept. 23, 2024.
Frequently asked questions
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If you were to compare the Premium Rewards card to similar mid-tier cards in this space, it would likely be the Chase Sapphire Preferred or the Capital One Venture Rewards. Both cards have a $95 annual fee but offer more travel benefits, including a long list of travel partners that Bank of America credit cards lack.Also, these cards can be used as part of card pairing strategies that boost your rewards and redemption values: the Chase trifecta or Citi trifecta.
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You can redeem your Bank of American Premium Rewards points through your online account by following these steps or by calling the Redemption Center phone number.
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To most likely be approved for the Bank of America Premium Rewards card, you’ll need good to excellent credit (a FICO score of 670 or above or a VantageScore of 661 or above).
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