Bank of America offers different credit cards for different spending patterns, and the right choice depends on what you buy most often

Bank of America's main consumer credit cards are the Cash Rewards, Travel Rewards, and Premium Rewards cards. Each one earns cash back or points on different categories — groceries, gas, dining, travel, or everything. The "best" card is the one that matches where you actually spend money. If you buy groceries and gas, the Cash Rewards card pays you back on those. If you fly or stay in hotels regularly, the Travel Rewards card makes more sense. If you spend heavily across many categories, Premium Rewards might return more overall.

All three cards charge an annual fee except the Cash Rewards card, which is free. The annual fees range from $95 to $550 depending on the card. Before you choose, think about whether the rewards you earn will be worth what you pay each year. A card that earns 3% cash back on dining is only worth it if you actually spend enough on dining to cover the annual fee.

Key Takeaways

  • The Cash Rewards card has no annual fee and earns cash back on groceries, gas, and transit, making it the lowest-cost option for everyday spending.
  • The Travel Rewards card earns points on all purchases and covers travel protections like trip cancellation and baggage delay, but costs $95 per year.
  • The Premium Rewards card earns higher points across all categories and includes concierge service and travel credits, but costs $550 per year and requires higher spending to break even.
  • Bank of America cardholders who are also Preferred Rewards members get bonus points multipliers, which can make a card more valuable depending on your banking relationship with the bank.
  • You can compare the three cards by calculating your annual spending in each category and multiplying by the rewards rate to see which card returns the most money.

Cash Rewards card: no annual fee, straightforward categories

The Bank of America Cash Rewards card earns 3% cash back on groceries (up to $2,500 per year, then 1%), 2% on gas and transit, and 1% on everything else. There is no annual fee. This card works best if you spend regularly on groceries and gas and want to keep things straightforward without paying a yearly cost.

Cash back posts to your account monthly and can be used to pay your statement balance, transferred to a Bank of America savings or checking account, or redeemed for a deposit. You do not have to wait until you reach a minimum amount — even $5 in cash back can be redeemed. The 3% category caps at $2,500 in purchases per year ($75 maximum cash back), so if you spend more than that on groceries, the extra purchases earn only 1%.

Travel Rewards card: points on all purchases plus travel protections

The Bank of America Travel Rewards card earns 1.5 points per dollar on all purchases with no category limits. It costs $95 per year. The card includes travel protections such as trip cancellation insurance, baggage delay reimbursement, and emergency medical and dental coverage abroad. These protections have real value if you travel even once or twice a year.

Points can be redeemed for travel purchases (flights, hotels, rental cars, cruises) at a fixed rate of 1 point = 1 cent, or transferred to Bank of America's travel partners. If you book through the Bank of America travel portal, you may see promotional bonus point offers on specific airlines or hotel chains. The card also includes a $100 annual travel credit that offsets part of the annual fee.

Premium Rewards card: highest earning rate and premium benefits

The Bank of America Premium Rewards card earns 2.625% points per dollar on all purchases with no caps or categories. It costs $550 per year but includes a $300 annual travel credit and a $100 dining credit, which together offset $400 of the fee. The card is designed for people who spend at least $30,000 to $40,000 per year and want maximum rewards plus premium travel and lifestyle benefits.

This card includes a concierge service available 24/7 to help with travel bookings, restaurant reservations, and event tickets. It also provides primary rental car insurance, which can save you money if you rent cars frequently. Points redeem at the same rate as the Travel Rewards card (1 point = 1 cent for travel), but the higher earning rate means you accumulate points faster on large spending amounts.

How Preferred Rewards membership changes the value of each card

If you are a Bank of America Preferred Rewards member (which requires holding a certain balance in Bank of America accounts), you earn bonus point multipliers on all three cards. The multiplier ranges from 10% to 75% extra points depending on your tier: Gold, Platinum, or Diamond. This bonus stacks on top of the card's base earning rate.

For example, a Platinum Preferred Rewards member earns an extra 25% points on the Travel Rewards card, turning 1.5 points per dollar into 1.875 points per dollar. This bonus can make a card with an annual fee worth more money, or make the no-fee Cash Rewards card even more valuable. Check your Preferred Rewards tier before deciding which card to open, because the bonus might change which card returns the most money for your spending pattern.

Comparing the three cards: which one returns the most money

To find the best card for you, list your average monthly spending in each category: groceries, gas, dining, travel, and everything else. Multiply each amount by the rewards rate for that category on each card, then add them up to get your annual rewards. Subtract the annual fee. The card with the highest number is the one that returns the most money.

Here is an example: if you spend $400 per month on groceries ($4,800 per year), $200 on gas ($2,400 per year), and $2,000 on everything else, the Cash Rewards card would earn $144 on groceries (3% of $4,800) plus $48 on gas (2% of $2,400) plus $20 on other purchases (1% of $2,000), for a total of $212 with no annual fee. The Travel Rewards card would earn $90 on all purchases (1.5% of $9,200) minus the $95 annual fee, for a net of negative $5. In this case, the Cash Rewards card is better. Your actual numbers will be different, so do this calculation with your own spending.

How to open a Bank of America credit card

You can open a Bank of America credit card online at bankofamerica.com, by phone at 1-800-933-6262, or in person at a Bank of America branch. Online is usually fastest. You will need your Social Security number, date of birth, address, and income. The bank will pull your credit report to check your credit score and history.

After you submit your information, you will receive a decision within minutes to a few business days. If you are approved, the card ships to your address within 7 to 10 business days. You can request expedited shipping in some cases. Once the card arrives, set up it through the Bank of America mobile app or website before making your first purchase. If you are already a Bank of America customer, you can link the new card to your existing account when ready.

Frequently Asked Questions

Can I have more than one Bank of America credit card at the same time?

Yes. You can hold multiple Bank of America credit cards and earn rewards on each one. Some people open the Cash Rewards card for everyday purchases and the Travel Rewards card for travel spending to maximize rewards across categories. There is no limit on how many Bank of America cards you can hold, but each new card will trigger a credit inquiry.

What is the difference between points and cash back?

Cash back is money that reduces your credit card balance or can be deposited into a bank account. Points are a currency that you redeem for travel, merchandise, or statement credits. Bank of America's Travel Rewards and Premium Rewards cards earn points; the Cash Rewards card earns cash back. Points typically have more flexibility because you can transfer them to travel partners or use them for non-travel purchases, but cash back is simpler because it is actual money.

Do I have to use the travel credit on the Premium Rewards card?

The $300 annual travel credit applies automatically to may be able to access travel purchases made through the Bank of America travel portal or charged directly to the card. If you do not book travel through those channels, you may not use the credit. The credit does not roll over to the next year, so if you do not travel, you lose it. This is why the Premium Rewards card makes sense only if you travel at least once per year.

What happens if I close a Bank of America credit card?

Closing a card does not affect rewards you have already earned — you can still redeem them. However, closing a card can lower your credit score slightly because it reduces your total available credit and may increase your credit utilization ratio on other cards. If you want to avoid the annual fee on a card you no longer use, you can call Bank of America and ask if they will waive the fee or downgrade you to a no-fee card instead of closing it.

Can I switch from one Bank of America card to another?

Yes. You can close one card and open another, or hold both at the same time. If you want to switch without opening a new card, call Bank of America and ask about a product change. They may allow you to convert your current card to a different Bank of America card without a new credit inquiry, though this is not always available. A product change is faster than closing and reopening.