The Bank of America Customized Cash Rewards card is a no annual fee cash back card built around flexibility. Cardholders pick a 3 percent category that matches their spending, earn 2 percent back on groceries and wholesale clubs, and receive 1 percent on everything else. For customers who link Bank of America or Merrill accounts, the Preferred Rewards program can boost those rates by 25 percent to 75 percent. This review breaks down the welcome offer, earning structure, redemption options, real-world use, pros and cons, and who should consider this card.
Quick Overview
- Annual fee: None
- Welcome bonus: $200 cash rewards after $1,000 in purchases within 90 days (offers can vary)
- Earning structure: 3 percent in one chosen category, 2 percent at grocery stores and wholesale clubs, 1 percent on all other purchases
- Category cap: 3 percent and 2 percent categories combined capped at $2,500 per quarter
- Preferred Rewards: Boosts of 25 percent, 50 percent, or 75 percent for eligible Bank of America or Merrill customers
Welcome Offer
The card’s current welcome offer is a $200 cash rewards bonus after $1,000 in purchases within 90 days. That is a solid starter bonus for a card without an annual fee. Offers may be higher during promotions or via targeted messaging, so checking current deals before applying is recommended.
Use the card for regular spending or planned large purchases to meet the spending requirement. Avoid unnecessary purchases solely to trigger a bonus, since overspending undermines the value of any welcome offer.
Earning Structure and Customizable Categories
The core feature is the customizable 3 percent category. Cardholders can select one of several categories each month including dining, gas, online shopping, travel, drug stores, or home improvement. The chosen category earns 3 percent cash back.
Grocery stores and wholesale clubs earn 2 percent cash back. All other purchases earn 1 percent. The 3 percent and 2 percent categories are subject to a combined cap of $2,500 in eligible purchases per quarter. After that cap is reached, those purchases drop to 1 percent for the remainder of the quarter.
Category selection is flexible. The chosen 3 percent category can be changed once every calendar month through the Bank of America website or mobile app, which makes this card adaptable to shifting spending patterns.
How to maximize the categories
- Pick the category that aligns with predictable spending. Dining for frequent eaters, gas for commuters, or home improvement for seasonal projects.
- Switch categories at the start of a month that has an expected spike in a particular spending area.
- Watch the $2,500 quarterly cap. If quarterly spending in the 3 percent and 2 percent buckets will exceed that, consider rotating spending to other cards once the cap is near.
Preferred Rewards Program: The Multiplier
The Preferred Rewards program is where this card can outperform many other no-fee options. Customers with combined Bank of America and Merrill balances qualify for tiered boosts that automatically increase cash back.
Preferred Rewards tiers and effective cash back
- Gold (25 percent boost): Requires $20,000 in combined balances. Results: 3.75 percent in chosen category, 2.5 percent at grocery stores and wholesale clubs, 1.25 percent on other purchases.
- Platinum (50 percent boost): Requires $50,000. Results: 4.5 percent in chosen category, 3 percent at grocery stores and wholesale clubs, 1.5 percent on other purchases.
- Platinum Honors (75 percent boost): Requires $100,000. Results: 5.25 percent in chosen category, 3.5 percent at grocery stores and wholesale clubs, 1.75 percent on other purchases.
These boosts apply automatically once enrolled, turning an otherwise modest cash back card into a high-yield everyday option for those who meet the balance thresholds.
Redemption Options
Redemption is straightforward and flexible. Main options include:
- Direct deposit: Cash back can be deposited into a Bank of America checking or savings account.
- Statement credit: Apply cash back to the card’s statement balance to reduce what is owed.
- Merrill deposit: Eligible cash back can be deposited into a Merrill investment account.
- Gift cards: A variety of gift card options are available and sometimes include a small redemption bonus.
No minimum redemption amount is required, which makes it easy to access rewards as soon as they are earned. For most cardholders, direct deposit or statement credit provides the best simplicity and value. For investors, redirecting rewards into a Merrill account can help cash back compound over time.
Real-World Use Case
One common scenario is a cardholder who consolidated banking and investment accounts with Bank of America and Merrill. After opening accounts, the cardholder applied for the Customized Cash Rewards card and selected dining as the 3 percent category while in school. The card covered everyday purchases such as quick meals and local dining. Enrollment in Preferred Rewards through combined balances significantly increased the effective cash back, making the card the primary spending card during that period.
As the cardholder’s priorities shifted toward travel-focused premium cards for point transfers and travel credits, the Customized Cash Rewards card remained in the wallet. Because the card does not have an annual fee, occasional use kept the account active and preserved length of credit history.
Pros and Cons
Pros
- Customizable 3 percent category: Lets cardholders align rewards with personal spending.
- No annual fee: Low cost to keep the card long term.
- Preferred Rewards boosts: Significant upside for Bank of America and Merrill customers.
- Flexible redemptions: Direct deposit, statement credit, Merrill deposits, and gift cards.
- Monthly category changes: Easy to switch the 3 percent category once per calendar month.
Cons
- Quarterly cap: The combined $2,500 cap on 3 percent and 2 percent categories is easy to reach for high spenders.
- Limited travel perks: Not optimized for travelers who want lounge access, statement travel credits, or transferable points.
- Better cards exist for niche spending: Cards with rotating categories or premium travel cards may outperform in specific areas.
Final Recommendation
The Bank of America Customized Cash Rewards card is a strong everyday cash back option for the right person. It delivers flexibility through a selectable 3 percent category and broad appeal through no annual fee and simple redemptions. The Preferred Rewards program can transform this card into a high-yield tool for those with significant Bank of America or Merrill balances.
For anyone starting out with credit cards or anyone already within the Bank of America ecosystem, this card deserves consideration. For travelers or heavy spenders who need uncapped high-rate rewards, supplemental or alternative cards may be a better fit.
Bottom line: A flexible, no-fee cash back card that shines for Bank of America and Merrill customers and for cardholders who tailor its 3 percent category to their regular spending.
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