Continuing to talk about the most advantageous point of this card, which are the rewards it offers, before you order, let’s check it out?
Redeeming rewards with the Bank of America Cash Rewards Credit Card is straightforward and easy. You can select how you’d like to receive your rewards:
- As a statement credit of any amount;
- As a direct deposit into a Bank of America checking or savings account of any amount;
- As a credit to an eligible account with Merrill of any amount;
- As a check, with minimum redemption of $25;
- As a contribution to a 529 account with Merrill, with minimum redemption of $25.
You may also set up automatic redemptions to either a Bank of America or Merrill account, given that those redemptions are worth at least $25. No other redemption methods qualify for automation.
If you forget to redeem your rewards, no problem: They don’t expire as long as your account is open.
To determine the rewards potential of the Bank of America Cash Rewards card we have to look at the bonus categories and calculate what an American household might spend in those areas. Forbes Advisor uses data from various government agencies in order to determine both baseline income and spending averages across various categories. The 70th percentile of wage-earning households bring in $100,172 annually and we base spending on that number.
The Bank of America Cash Rewards card has the following bonus categories:
- Earn 3% cash back on a chosen category (we chose restaurants);
- Earn 2% cash back on grocery stores;
- Earn 1% cash back on all other purchases.
We estimate that our example household spends $4,406 on dining, which results in $132.18 cash back annually. The $5,687 on grocery stores this household spends would translate to $113.74 cash back, and the remaining $16,317 that could reasonably be charged to a credit card would earn $136.17 cash back.
This means that the card would earn a total of $409.09 in cash back per year in addition to the welcome bonus earned in the first year.
A lot of advantages, isn’t it?!
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