Bank of America Cash Rewards
Free
The Bank of America Cash Rewards card allows you to earn 3% cash back in a category of your choice, 2% at grocery stores and wholesale clubs, and 1% on all other purchases.
Our take
Perfect for those who want to customize their cash back
So, the Bank of America Cash Rewards card is all about giving you some money back for being a grown-up and spending money. The main thing here is the flexibility it offers. You can choose your 3% cashback category each month from options like gas, online shopping, dining, and more. It’s like having a pick-your-own adventure book, but for adulting. That freedom to switch things up is a standout feature and could definitely be a win if your spending habits change a lot.
Now, let’s talk about the rewards caps because, honestly, this is where you might feel the pinch. The 3% and 2% cash back categories are capped at $2,500 in combined purchases each quarter, which is great if you’re not a big spender but can feel a bit tight if you are. Once you hit that cap, you’re back down to 1% on everything, which isn’t exactly thrilling. So, if your monthly spending is on the higher side, you might find those rewards drying up faster than you’d like.
The card doesn’t have an annual fee, which is always a nice touch. It means you can keep it in your wallet without worrying about it costing you just to own it. But, heads up, the interest rate isn’t exactly low, especially if your credit score isn’t shining bright. If you carry a balance, you might end up paying more in interest than you’re getting back in rewards. So, it’s best to pay off your balance in full each month to really make the most of those cash rewards.
Oh, and there’s a sign-up bonus if you meet the spending requirements in the first 90 days. It’s like a little welcome gift, which is appreciated. Just make sure you’re not overspending just to hit that target. The bonus is nice, but it shouldn’t drive your spending habits. It’s really about being smart with your purchases and making this card work for you, not the other way around.
Overall, the Bank of America Cash Rewards card is pretty solid if you’re looking for a no-annual-fee card with some customizable cashback options. It’s best suited for folks who pay off their balances monthly and who can benefit from the rotating 3% categories. If you’re someone who spends a lot or carries a balance, you might want to weigh those rewards against the potential interest charges or look for a card with higher caps. It’s all about figuring out what fits your lifestyle and spending habits best.
