Our Verdict
The Bank of America® Unlimited Cash Rewards credit card is a no-nonsense card that offers 1.5% unlimited cash back on all purchases. Given that several banks offer credit cards earning 2% on all purchases or cards that earn 1.5% back on general purchases and additional cash back in bonus categories, there are certainly better options for consumers looking for an everyday credit card.
However, for customers who hold $100,000 or more in deposits and investments in an eligible Bank of America or Merrill account, the card quickly moves from lackluster to best in class. For customers who qualify for Platinum Honors status in the Bank of America Preferred Rewards program, the card’s earnings increase to 2.62%.
Pros
- Simple cash-back rewards
- No minimum cash-back redemptions
- Cash-back rewards do not expire as long as your account remains open
- Card can earn up to 2.62% cash back for Platinum Honors Preferred Rewards
- No annual fee
Cons
- Base cash back of 1.5% is market-lagging
- Cash back cannot be credited to an account at another bank
Highlights
- $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
- Earn unlimited 1.5% cash back on all purchases.
- If you’re a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 1.87%-2.62% cash back on every purchase with Preferred Rewards.
- No annual fee.
- No limit to the amount of cash back you can earn and cash rewards don’t expire as long as your account remains open.
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.24% – 28.24% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
- Contactless Cards – The security of a chip card, with the convenience of a tap.
- This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
Introduction
The Bank of America® Unlimited Cash Rewards credit card is simple: The card earns 1.5% unlimited cash back on all purchases, redeemable as a credit card statement credit or a deposit into an eligible Bank of America account, with no minimum redemption amount, no limit on the amount of rewards and no annual fee.
In an age when several banks offer no-annual-fee cards that reward customers with 2% cash back on all purchases or cards with 1.5% cash back on general purchases accompanied by bonus categories and generous consumer protection benefits, a basic credit card that earns 1.5% back isn’t terribly exciting.
However, the Bank of America® Unlimited Cash Rewards credit card shines for customers who can achieve Platinum or Platinum Honors status in Bank of America’s Preferred Rewards Program. This program is meant to encourage customers to bring more of their banking business to Bank of America by offering perks like earning additional interest on deposit accounts, loan-rate reductions and additional rewards on credit cards.
Customers who achieve Gold, Platinum or Platinum Honors status in the Bank of America Preferred Rewards program have their cash-back earnings boosted, making the Bank of America Unlimited Rewards card more than simply a 1.5% cash-back card:
| Rewards Level | Rewards Bonus | Effective Cash Back |
|---|---|---|
|
Gold
|
25%
|
1.87%
|
|
Platinum
|
50%
|
2.25%
|
|
Platinum Honors
|
75%
|
2.62%
|
Achieving status in the Preferred Rewards program requires maintaining deposit balances in Bank of America checking or savings accounts or holding investment assets with Merrill. Gold status requires a minimum of $20,000 in assets, Platinum requires $50,000 and Platinum Honors requires $100,000. The Diamond tier requires at least $1 million. If it makes sense to hold some investments at Merrill or move some assets to Merrill, the Bank of America® Unlimited Cash Rewards credit card can be a best-in-class everyday cash-back card.
Quick Facts
- No annual fee
- Earn 1.5% unlimited cash back on all purchases
- Cash-back redemptions as a statement credit, deposit into an eligible Bank of America deposit account or contribution to an eligible Merrill investment account
- Eligible for 25% to 75% rewards bonus for Bank of America Preferred Rewards members
Bank of America Unlimited Cash Rewards Credit Card Rewards
Earning Rewards
The Bank of America® Unlimited Cash Rewards credit card’s rewards earning rate is straightforward: The card earns 1.5% unlimited cash back on all purchases.
Customers who have an additional banking relationship with Bank of America and qualify for Bank of America’s Preferred Rewards program earn increased rewards based on their tier in the Preferred Rewards program. Bank of America grants Gold, Platinum, Platinum Honors or Diamond tiers to customers holding a minimum amount of assets across Bank of America deposit accounts and Merrill investing accounts.
Redeeming Rewards
Redeeming rewards is as straightforward as earning them. Cardmembers can redeem their cash back for any amount, at any time for either statement credits or deposits into a Bank of America checking or savings account or for a credit into an eligible account with Merrill. Bank of America even offers an auto-redemption option that allows cash back to automatically be applied as a statement credit or bank deposit every month. However, know that while most redemption options have no minimum, there’s a $25 minimum redemption if you want to make a contribution toward a 529 account with Merrill or for automatic deposits into a bank account.
Rewards Potential
Using data from various government agencies, Forbes Advisor has developed estimates for how much a family in the 70th percentile of income spends annually in various categories. We base our assumptions on a sole proprietor in this income range. The 70th percentile of wage-earning households brings in $116,000 annually and has $36,177 in expenses that can reasonably be charged to credit cards. These figures are used to estimate the potential rewards from this credit card.
If a family charged all of their $36,177 in expenses to their Bank of America® Unlimited Cash Rewards credit card, they would earn 1.5% cash back on them, which would equal $542.66 in cash-back rewards annually.
Accounts that qualify for the rewards bonus multiplier granted by the Bank of America Preferred Rewards program would earn additional cash back, based on the rewards-earning multiplier:
| Rewards Level | Effective Cash Back | Annual Earnings |
|---|---|---|
|
Gold
|
1.87%
|
$676.51
|
|
Platinum
|
2.25%
|
$813.98
|
|
Platinum Honors
|
2.62%
|
$947.84
|
Introductory Rates
This card offers a 0% introductory APR for 15 billing cycles on purchases and for any balance transfers made in the first 60 days of account opening, followed by a 18.24% - 28.24% variable APR. A 3% fee applies to balance transfers made in the first 60 days, then 4%.
Other Bank of America Unlimited Cash Rewards Credit Card Benefits
- Visa Signature benefits: As a Visa Signature card you’ll get benefits including ID theft protection, access to the Visa Signature Hotel Collection and other discounts and perks.
- $0 liability guarantee: You are not liable for fraudulent transactions charged to your account.
- Online account access: Manage your account online through Bank of America’s website and on the go through the mobile banking app.
- Overdraft protection: If you link your Bank of America credit card to your Bank of America deposit account, Bank of America can automatically transfer funds from your credit card to cover overdrafts.
Fine Print
Interest Rates
- Regular APR: 18.24% - 28.24% Variable APR on purchases and balance transfers
- Purchase intro APR: 0% Intro APR for 15 billing cycles for purchases
- Balance transfer intro APR: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
Fees
- Annual fee: $0
- Balance transfer fee: 3% for 60 days from account opening, then 4%
- Foreign purchase transaction fee: 3%
How the Bank of America Unlimited Cash Rewards Credit Card Stacks Up
Bank of America® Unlimited Cash Rewards credit card vs. Citi Double Cash® Card
Since Citi launched its Citi Double Cash® Card, 2% no-hassle cash-back rewards has been the standard by which all other cash-back cards are compared. Anyone looking for a simple cash-back card to use for everyday spending should seriously consider the Citi Double Cash® Card.
The card has no annual fee and earns 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off.
You’ll earn rewards in the form of Citi ThankYou Points. Redemption options include deposits into a bank account, statement credits to your card and gift cards. If you have an eligible Citi travel credit card, you can also transfer those points to participating airline and hotel partners for the opportunity to get outsized value in award redemptions.
Ultimately, if you are looking for a no-annual-fee credit card with simple rewards, the Citi Double Cash® Card is going to provide more value for you than the Bank of America® Unlimited Cash Rewards credit card if you are not a Bank of America Preferred Rewards Platinum or Platinum Honors client.
Bank of America® Unlimited Cash Rewards credit card vs. Chase Freedom Unlimited®
Another option worth a look if you want a no-annual-fee credit card earning generous cash back is the Chase Freedom Unlimited®. The Freedom Unlimited matches the Bank of America Unlimited Cash Rewards card’s 1.5% cash-back earnings but includes additional earnings in bonus categories.
In addition to earning 1.5% back on general purchases, the Freedom Unlimited awards 3% on purchases at drugstores and restaurants. Those cardmembers booking travel through Chase Travel℠ will be further rewarded with a generous 5% cash back.
The Chase Freedom Unlimited® includes several consumer protection benefits, including extended warranty protection, auto rental collision damage waiver and trip cancellation/interruption insurance.
If you spend heavily at restaurants, order takeout frequently, find 3% cash back at drugstores appealing or are intrigued by the addition of the consumer protection benefits, take a look at the Chase Freedom Unlimited®.
Bank of America® Unlimited Cash Rewards credit card vs. Bank of America® Premium Rewards® credit card
Before launching the Unlimited Cash Rewards card, Bank of America offered another credit card that earned at least 1.5 points per dollar on all purchases: The Bank of America® Premium Rewards® credit card. Points can be redeemed for cash back as a statement credit or deposit into a Bank of America account. The Premium Rewards card carries a $95 annual fee.
The Premium Rewards Card earns 2 points per dollar on travel and dining purchases and 1.5 points per dollar on all other purchases.
The $95 annual fee of the Bank of America Premium Rewards card can be justified by a $100 annual airline incidental statement credit. Cardmembers can also receive a credit of up to $100 toward Global Entry or TSA PreCheck enrollment fees every four years. The card also comes with travel insurance protections including trip cancellation/interruption insurance, baggage delay insurance and emergency evacuation and transportation assistance.
Preferred Rewards Gold, Platinum and Platinum Honors members receive bonus multipliers of 25% to 75% more points with the Premium Rewards Card. That means you could earn up to 3.5 points per dollar spent on travel and dining and up to 2.62 points per dollar spent on other purchases.
If you can achieve Preferred Rewards Platinum or Platinum Honors status, spend enough in airline incidentals to cover the annual fee and can take advantage of the increased earnings on travel, dining and grocery stores, the Bank of America Premium Rewards card is worth a look.
Compare Bank of America® Unlimited Cash Rewards Credit Card With Other Cards
Is the Bank of America Unlimited Cash Rewards Credit Card for You?
If you are looking for a single, no-annual-fee credit card to charge all of your purchases, the Bank of America Unlimited Cash Rewards isn’t your best option. The Citi Double Cash® Card earns a simple 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off and can unlock more value through the ThankYou Points program. The Chase Freedom Unlimited® card offers 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases, plus an additional 1.5% cash back on the first $20,000 in purchases the first year. Both of these cards are likely better options.
However, if you can qualify for Bank of America Preferred Rewards at either the Platinum or Platinum Honors levels, the Bank of America Unlimited Cash Rewards credit card becomes a best-in-class cash-back card. For Platinum Honors customers, the Bank of America Unlimited Cash Rewards credit card earns 2.62% back on every purchase.
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors, including:
- Annual fees
- Ongoing earning rates
- Value of individual points
- Included merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
