The offer mentioned below for the for the Citi® Double Cash Card is no longer available.
A new rewards credit card has just hit the market: The Bank of America® Unlimited Cash Rewards Card enters a crowded field of cash-back cards. The Unlimited Cash Rewards Card is a no-annual fee card that earns 1.5% cash back on purchases with the ability to earn a higher cash-back rate if you're a Bank of America Preferred Rewards member.
The Unlimited Cash Rewards Card has a straightforward rewards program with a twist. The card earns 1.5% cash back on everything, but it also allows you to tap into Bank of America's Preferred Rewards Program, which gives you the potential to gain an additional 25% to 75% uplift on your rewards, depending on your Preferred Rewards program member tier.
Bank of America joins Wells Fargo and Citigroup which have both rolled out cash-back cards in the past few months.
"Some customers choose to have flat cash-back products and we noticed that some of our customers [would] go elsewhere to seek out that type of product, because Bank of America didn't offer it," Jason Gaughan, Consumer Card Product Executive at Bank of America said.
The card offers a solid welcome bonus of $200 if you spend $1,000 within the first three months of opening the card and a 18 month 0% APR introductory period on balance transfers and purchases (after, variable APR 16.99% to 26.99%). It also has a 3% foreign transaction fee, so it's not a great card for international travelers.
You can redeem your cash back as a statement credit, a direct deposit into a Bank of America checking or savings account or a credit to an eligible Merrill® account.
Bank of America® Unlimited Cash Rewards credit card
Rewards
Unlimited 1.5% cash back on all purchases, but you earn 25%-75% more cash back on every purchase if you're a Preferred Rewards member
Welcome bonus
$200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days from account opening.
Annual fee
$0
Intro APR
Introductory 0% APR for your first 18 billing cycles on purchases and balance transfers made within 60 days of account opening.
Regular APR
17.99% - 27.99% variable
Balance transfer fee
3% of the amount of each transaction
Foreign transaction fee
3%
Credit needed
Good/Excellent
Terms apply.
Pros
- No annual fee
- Unlimited cash-back
- $200 online cash rewards bonus
Cons
- 3% foreign transaction fee
- Can't receive a greater cash-back rate unless you're a Preferred Rewards member
- Estimated rewards earned after 1 year: $532
- Estimated rewards earned after 5 years: $1,860
Rewards totals incorporate the cash-back earned from the welcome bonus and 1.5% back
Boost your cash-back earning with Preferred Rewards
In order to become a Preferred Rewards program member, you'll need at least $20,000 or more invested in a Bank of America® deposit and/or Merrill® investment account.
There are three Preferred Rewards tiers. If you're in the highest tier, Platinum Honors, you earn 2.625% back on purchases with the Unlimited Cash Rewards Card. If you're in the lowest tier, Gold, you receive 1.875% back, and if you're in the middle tier, Silver, you'll earn 2.25% cash back.
"...It pays to have a relationship, or a full relationship, with us [Bank of America]. The more you do with us, the more you get rewarded," Don Vecchiarello, spokesperson for Bank of America, said.
The ability to earn a greater cash-back rate by being a Preferred Rewards member, up to 2.625%, potentially makes the Unlimited Cash Rewards Card the best flat-rate cash-back card currently on the market. Most other cash-back cards offer rewards rates of 1.5% to 2% back, and cards with higher cash-back rates of 5% typically have rotating categories or spending caps.
Other flat-rate cash-back cards
While cardholders have the ability to earn more by being a Preferred Rewards Program member, there are other cash-back cards on the market with better rewards systems if you're not a member. The new product from Bank of America competes against other well-known cards in the cash-rewards space, namely the Wells Fargo Active Cash® Card, the Chase Freedom Unlimited® and the Citi® Double Cash Card Card. Some have a welcome bonus and a 0% APR introductory period.
The Wells Fargo Active Cash offers 2% cash rewards on all eligible purchases and a $200 cash reward welcome bonus if you spend $500 in purchases within the first three months of account opening.
Wells Fargo Active Cash® Card
Rewards
Unlimited 2% cash rewards on purchases
Welcome bonus
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual fee
$0
Intro APR
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate
Regular APR
20.24%, 25.24%, or 29.99% Variable APR on purchases and balance transfers
Balance transfer fee
3% intro for 120 days from account opening then BT fee of up to 5%, min: $5
Foreign transaction fee
3%
Credit needed
Excellent/Good
See rates and fees, terms apply.
The Chase Freedom Unlimited offers new cardholders an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back! Cardholders also earn 6.5% cash back on travel purchased through Chase Travel, 4.5% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery service), and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
Chase Freedom Unlimited®
Rewards
Enjoy 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 6.5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
Welcome bonus
INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
Annual fee
$0
Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
20.49% - 29.24% variable
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%
Credit needed
Excellent/Good
Member FDIC. Terms apply.
Read our Chase Freedom Unlimited® review.
The Citi Double Cash Card also has a 2% cash-back on purchases; 1% when you buy and 1% as you pay but doesn't have a welcome bonus, making the Active Cash Card a stronger choice.
Bottom line
Regardless of which cash-back card you choose, the Unlimited Cash Rewards Card comes with the potential to earn the highest cash-back rate, on all purchases, of many cards. You'll just need to be at least a Gold or Platinum Preferred Rewards program member to reap those rewards.
Information about the Bank of America's Unlimited Cash Rewards Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
