Alas, there is often an asterisk. This one comes in the form of “Preferred Rewards” relationship requirements with Bank of America. This relationship bonus is notable, bumping the rewards earn from 1.5% to 2.625% on all spend. No joke.
Link to the product itself (not a referral link)
The base product itself is perfectly fine
At first glance, relatively simple and no-regrets to get for bonus and keep for offset annual fee. Base rewards earn rates are perfectly fine, but nothing to write home about with 1.5% on all spend and 2% on travel & dining. While they are technically points, they’re redeemable for cash.
- Solid sign up bonus (60,000 points for $4,000 in spend in the first 3mo)
- Annual fee more than offset by travel credits ($95 Annual fee, $100 incidental fee credit)
- Standard Premium Rewards Card benefits (global entry/TSA pre-check)
- No Foreign Exchange Fees
Where this gets interesting is with Preferred Rewards
Bank of America really wants you to make their bank your primary relationship. To help foster that, they launched a Preferred Rewards program which provides relationship benefits for maintaining different relationships. This includes things like ATM fee refunds, discounts on auto loans, etc. Those are all well and fine, but where it gets good is with the credit card rewards enhancements.
Maintaining a $20k relationship (generally checking/savings/investments, including retirement accounts) will yield a 25% increase in rewards. $50k relationship will yield 50% increase. $100k+ will yield 75% increase in rewards. These are 3-month average balances. These increases are uncapped, unrestricted, and apply to all rewards earned for spend on the card (excl. the card sign up bonuses.)
The rewards math is impressive
Base (everywhere) earn rate = 1.5%.
Maintaining $100k+ in investments increases that by 75% = 1.5% * 75% = +1.125%
Base + Preferred Bonus = 1.5% + 1.125% = 2.625%
Even at the lower tiers this is solid, though not as impressive (+50% tier = 2.25%, +25% tier = 1.875%)
Category earn (travel & restaurants) = 2%
Maintaining $100k+ in investments increases that by 75% = 2% * 75% = +1.5%
Base + Preferred Bonus = 2% + 1.5% = 3.5%
Even at the lower tiers this is solid, though not as impressive (+50% tier = 3%%, +25% tier = 2.5%)
My overall take
This is a great card to have for both general all-purpose non-bonus spend, as well as for international travel expenses. The $600 bonus is stellar (I’ve taken advantage…a few times). The travel rewards credit effectively makes it a -$5 annual fee card ($95 – $100 = -$5). It’s a good backup card for restaurants and travel (or primary if you value simplicity). As a one-stop shop card, it really can’t be beat. Redemption is easy, statement credits at par value (100 points = $1.00).
For primary, first-in-wallet type use, this is great if you are comfortable and want to have $100k parked with Bank of America. Unlike other relationships, this for me is sitting in retirement (IRA) and equities accounts, so it’s not like I’m touching that money with any regularity. There are also some bonuses for moving money over there, too. For me, absolutely no-questions worth it.