The Bank of America Unlimited Cash Rewards Credit Card is a straightforward flat-rate cashback card designed for simplicity and integration with Bank of America and Merrill accounts. It aims to serve cardholders who prefer a no-fuss rewards structure and those who already have a banking relationship with Bank of America. Below is a practical breakdown of what the card offers, where it falls short, and who benefits most from carrying it.
Overview and key details
- Rewards rate: 1.5% cash back on all purchases (flat rate).
- Sign-up bonus: Typically around $200 after $1,000 spent in the first three months (check current offer before applying).
- Annual fee: $0.
- Network: Visa.
- Foreign transactions: Foreign transaction fee applies, so not ideal for travel or international purchases.
- Redemption options: Direct deposit to a Bank of America account or statement credit (as low as one cent minimum for those with a BoA account). PayPal and Amazon redemption are available but not recommended.
- Extra perks: BankAmeriDeals merchant offers, monthly free admission to participating museums via Bank of America’s Museums on Us program, and standard Visa protections (fraud protection, zero liability, contactless payments).
Pros
- No annual fee and a simple, predictable 1.5% back on everything.
- Easy-to-hit sign-up bonus with an in-app tracker to monitor progress.
- Preferred Rewards boost: Cardholders with qualifying Bank of America or Merrill assets can earn up to 25%, 50%, or 75% more cash back depending on tier, increasing the effective rate up to a theoretical 2.62%.
- Wide acceptance via the Visa network.
- Useful banking integration for customers who already use Bank of America or Merrill Lynch.
Cons
- Limited redemption flexibility: Mainly cash-only redemptions; no travel transfer options or transfer partners.
- Poor experience for non-Bank of America customers: Redemption features and minimums are far more restrictive without a BoA account.
- Foreign transaction fees make this a poor travel card.
- Customer service and app issues: The app can be cluttered and laggy, and live customer support may provide inconsistent or incorrect answers.
- No referral bonus at the time of review.
- Rewards tracking is not transaction-transparent; users must dig through the rewards section to see earnings.
- Cannot combine cashback balances between the Unlimited Cash and the Customized Cash cards even though they share a similar rewards engine.
BankAmeriDeals and merchant offers
BankAmeriDeals can add incremental cashback at participating merchants. Offers can be activated across all Bank of America cards and post as statement credits once the threshold is met. The implementation has usability weaknesses: finding activated offers requires scrolling, expiry is shown as days remaining rather than a specific date, and many offers are not particularly compelling for typical spending patterns.
Is the Preferred Rewards boost worth it?
The Preferred Rewards program increases cashback by a percentage based on combined Bank of America and Merrill assets. The maximum boost of 75% (Platinum Honors) requires at least $100,000 in assets and would raise the 1.5% base rate to a theoretical 2.62%.
Simple opportunity-cost comparison
- Keeping $100,000 in a Bank of America savings account: interest income is negligible at typical bank rates, often under $2 per month, while the boosted cashback adds about $26.20 per month assuming $1,000 in monthly spending. Total incremental return remains small.
- Placing $100,000 in a Merrill investment account: potential returns depend on investment performance and advisory requirements. Merrill requires $250,000 for full advisory services, and investing that sum elsewhere may deliver better risk-adjusted returns than the modest cashback uplift.
- Putting $100,000 in a competitive online savings account: current high-yield options (at time of analysis) can offer around 3.8% annual, roughly $300+ per month in interest. The cardholder would still earn the non-boosted 1.5% on card spending, leaving overall income far higher than the Bank of America boost strategy.
Conclusion on Preferred Rewards: For most people, concentrating large cash or investments at Bank of America or Merrill solely to gain a higher flat-rate cashback is not an efficient use of capital. Higher-yield savings or a 2% flat-rate cashback card from a different issuer are usually better options.
Final recommendation
The Bank of America Unlimited Cash Rewards Credit Card is a solid, simple cashback card for people tied to Bank of America or for those just starting to build credit. It is best suited for cardholders who prioritize integration with existing Bank of America accounts, easy approval, and minimal complexity. For anyone not already banking with Bank of America, or for those seeking the best flat-rate return on everyday spending, a 2% flat-rate card such as Wells Fargo Active Cash or Citi Double Cash is generally a better choice.
Bottom line: Useful for newcomers and loyal Bank of America customers; not the optimal pick for maximizing returns or travel-friendly use.
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