The annual fee on the Bank of America may be worth it for frequent travelers whose purchases generate rewards points. Account members receive two points for every dollar spent on eating and travel. Your earning potential is unbounded. Thanks to its compelling benefits, you may easily ignore the card's shortcomings, such as a statement credit for TSA PreCheck or Global Entry every four years and no international transaction fees.

Introduction

Bank of America Premium Rewards is a well-known travel reward credit card. Travel and dining expenditures get 2 points per dollar, while all other purchases receive 1.5 points per dollar. The additional travel perks offered by this card may not be available on other cards, even if their value is higher. This card's $95 annual fee is the sole genuine red flag. TSA PreCheck and Global Entry statement credits of up to $100 every four years make this card ideal for international travel, especially for those who plan to use it.

Rewards Programs at Bank of America Money Back On Credit Cards

Earning Rewards

Travel and dining expenditures give cardholders an unlimited 2 points per dollar, while all other transactions receive 1.5 points per dollar. Except for when the account is closed, there are no prize restrictions or expiration dates. Regarding travel and eating, Bank of America Preferred Rewards members earns 25-75% more points per dollar spent, while all other expenditures earn 2.62 points per dollar.

Redeeming Points and Prizes

The reward redemption is advertised as flexible by Bank of America, which offers direct deposits to eligible Bank of America bank or credit redemption to Merrill Lynch account, or gift redemptions at the Bank of America Travel Center. In years without a bonus prize, a cardholder needed to spend at least $4,750 on leisure and dining and $6,333.33 on all other purchases before the $95 annual fee would be worth it.

Incentives for Excellence

Calculating how much a typical American household spends in bonus categories is the first step in determining the rewards potential of the Bank of America. Using data from numerous government sources, Forbes Advisor calculates typical income and expenditures in several categories.

What Are The Benefits Worth?

It doesn't matter how you redeem your points with the Bank of America credit card; each point is worth one cent. In contrast to the changeable value of points issued by certain other companies, this one is fixed and cannot be redeemed in any way. While you may redeem these benefits for cash back without incurring any penalties, they don't give any incentive to redeem for travel as other competitor cards do. Thus they're more helpful for infrequent travelers.

Other Cardholder Benefits

It's not a luxury travel rewards card by any means. Still, the Bank of America Premium Rewards card comes with some excellent benefits considering it has an annual cost of only $95 and no foreign transaction fees. Even if you don't use the Premium Rewards card's features to their full potential, the annual cost is well worth it if you're more worried about where you're going than how you get there.

The Visa Signature Luxury Hotel Collection

All the amenities of the Visa Signature Luxury Hotel Collection are accessible to Bank of America cardholders when they have a Visa Signature card, including late checkouts, free Wi-Fi and a $25 credit for food and drink.

Incidental Airline Credit of $100

Incidental airline expenses, including baggage fees, seat upgrades, itinerary changes, lounge access, or in-flight purchases such as food and beverages, are eligible for up to $100 in annual statement credits for cardholders.

This card's airline incidental credits aren't as straightforward as those on other cards, which cover airfare or accurate travel bookings. Infrequent fliers who don't care about extras like airport lounge access or traveling in a class beyond coach may have difficulty making the most of these credits for things other than baggage costs.

Fees

Because it is comparable to other high-end cards like the Chase Sapphire Preferred, Citi Premier, and Capital One Venture, the annual cost of $95 is reasonable. The variable APR range of 18.24% – 25.24% on this card is likewise in line with those of similar cards. With a 3 percent balance transfer cost, the Bank of America Premium Rewards card offers a minor edge over the Chase Sapphire Preferred and Citi Premier cards, which have a 5 percent balance transfer fee. This card does not have an intro APR period for balance transfers.