+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Bank of America offers some great lesser-known cards, from the Alaska Visa to the Premium Rewards card. Here are our top 5 picks.

Jan 11, 2020, 02:50 IST
Stephen Chernin/Stringer/Getty Images

While Chase and American Express tend to grab all the headlines, there are plenty of other issuers that offer valuable rewards and travel credit cards. Bank of America is one such off-the-radar issuer that boasts a surprising number of cash-back and travel rewards cards to fit any spending style, some with no annual fee.

If you're in the market for a new rewards card but have tapped out on your options with other card issuers, consider giving Bank of America rewards cards a try. However, you should also compare each of these cards side by side so you wind up with the right earning structure for your goals and the type of rewards you want to spend.

Here are our top picks for the best Bank of America credit cards:

Before you sign up for one of the Bank of America credit cards profiled below, you should know that some cards let you earn 25% to 75% more rewards.

This is possible thanks to the Bank of America Preferred Rewards program, which incentivizes Bank of America customers to keep money on deposit in order to rack up more points. You'll need to have a three-month average combined balance of at least $20,000 in eligible Bank of America accounts to qualify, though.

Advertisement

There are three tiers in the Preferred Rewards program - here's how to qualify, and how much a credit card rewards bonus you'll receive:

  • Preferred Rewards Gold: Requires $20,000-$49,999 in qualifying accounts - 25% rewards bonus
  • Preferred Rewards Platinum: Requires $50,000-$99,999 in qualifying accounts - 50% rewards bonus
  • Preferred Rewards Platinum Honors: Requires $100,000 or more in qualifying accounts - 75% rewards bonus

Best overall: Bank of America Premium Rewards card

Why you'll love it: The Bank of America Premium Rewards card offers the biggest sign-up bonus among all the Bank of America rewards cards available today. You also get travel perks like a credit for Global Entry or TSA PreCheck and up to $100 in airline credits each year.

Sign-up bonus: Earn 50,000 points (worth $500) when you spend $3,000 on your card within 90 days of account opening.

Earning structure: You'll earn 2 points per dollar spent on travel and dining purchases and 1.5 points per dollar spent on all other purchases.

Annual fee: $95

Pros: Generous welcome bonus, lucrative travel perks, reasonable annual fee

Advertisement

Cons: Limited redemption options for travel

In a lot of ways, the Bank of America Premium Rewards card mimics the Chase Sapphire Preferred Card. This includes the fact this card gives you 2 points per dollar on travel and dining. The difference is, the Premium Rewards card gives you 1.5 points per dollar on other purchases as well, whereas the Sapphire Preferred only gives you 1 point per dollar on regular purchases.

The $95 annual fee on this card is reasonable, especially when you consider the $100 credit you get toward airline incidentals each year and up to a $100 credit you get toward Global Entry or TSA PreCheck every four years. This card also comes with no foreign transaction fees. Keep in mind, however, that rewards earned are only good for statement credits, transfers to a qualifying Bank of America or Merrill account, gift cards, or purchases made through the Bank of America Travel Center.

Click here to learn more about the Bank of America Premium Rewards card »

Best with no annual fee: Bank of America Cash Rewards card

Why you'll love it: With this card, you actually get to pick the category you earn the most rewards in.

Sign-up bonus: Earn $200 in cash rewards when you spend $1,000 on your card within 90 days of account opening.

Earning structure: Earn 3% cash back in a category of your choosing and 2% back on grocery stores and wholesale clubs on up to $2,500 in combined spending each quarter. You'll also earn 1% back on all other purchases.

Advertisement

Annual fee: None

Pros: Generous earning structure, no annual fee

Cons: Earning caps limit rewards on bonus spending

The Bank of America Cash Rewards card doesn't charge an annual fee, yet the rewards can be very lucrative over time. This card lets you pick a single category to earn 3% back in with options including:

  • gas
  • online shopping
  • dining
  • travel
  • drug stores
  • home improvement/furnishings.

You also earn 2% back on grocery stores and wholesale club purchases, although bonus earnings are limited to combined spending of $2,500 per quarter.

Advertisement

The Cash Rewards Credit Card also doles out a flat 1% back on all non-bonus spending, and that's on top of the $200 cash bonus you can earn in the first 90 days. Since this card doesn't charge an annual fee, it's easy to see how you could use it to get ahead.

Click here to learn more about the Bank of America Cash Rewards card »

Best for travel: Bank of America Travel Rewards card

Why you'll love it: The Travel Rewards card offers generous flat-rate rewards on all your spending, and you won't pay an annual fee.

Sign-up bonus: Earn 25,000 bonus points when you sign up and spend $1,000 on your card within 90 days of account opening.

Earning structure: This card gives you a flat 1.5 points for each dollar you spend with no limits or bonus categories to keep track of

Annual fee: None

Pros: Earn a generous bonus and ongoing rewards with no annual fee

Advertisement

Cons: This card doesn't offer any travel-related perks

The Bank of America Travel Rewards card offers a rewards structure that's easy to understand. This card gives you a flat 1.5 points for each dollar you spend, and there are no limits to keep track of at all. On the redemption side, you can cash in your points for statement credits to cover travel purchases at a rate of 1 cent per point.

You'll also be happy to know this card doesn't charge an annual fee or foreign transaction fees. Finally, you'll qualify for 0% APR on purchases for 12 billing cycles (then a variable APR of 16.49% to 24.49% applies).

Click here to learn more about the Bank of America Travel Rewards card »

Best for airfare: Alaska Airlines card

Why you'll love it: This card allows you to earn valuable Alaska miles along with a companion fare that can help you save even more money.

Sign-up bonus: Earn 40,000 miles and the Alaska companion fare from $121 ($99 fare, plus taxes and fees from $22) when you spend $2,000 on your card within 90 days of account opening

Earning structure: You'll rack up 3 miles per dollar spent on Alaska purchases and 1 mile per dollar spent on other purchases

Advertisement

Annual fee: $75

Pros: Earn bonus miles and upfront miles, qualify for Alaska companion fare

Cons: Annual fee applies

The Alaska Airlines Visa is popular among consumers based on the simple fact that Alaska miles are incredibly valuable. However, travel enthusiasts also like this card's famous companion fare. Once you sign up for this credit card and meet the requirements, the companion fare lets you score a companion fare for $121 when you book a qualifying paid fare with your credit card. Also be aware that you get the companion fare every year you have the card, and not just once.

To sweeten the pot, the Alaska Airlines card lets you and six guests on your itinerary qualify for a free checked bag on Alaska flights. This card does have a $75 annual fee, but it's very reasonable for all you get in return.

Advertisement

Click here to learn more about the Alaska Airlines card »

Best for train fare: Amtrak Guest Rewards World Mastercard

Why you'll love it: This card offers superior perks for people who travel with Amtrak all the time.

Sign-up bonus: Get 20,000 bonus points when you spend $1,000 on your card within 90 days of account opening

Earning structure: Earn 3x points on Amtrak travel, 2x points on other types of travel and 1x points on all other purchases

Annual fee: $79

Pros: Enjoy an initial bonus and a handful of Amtrak-related travel perks

Cons: Rewards earned with this card are mostly just good for travel on Amtrak

Advertisement

The Amtrak Guest Rewards World Mastercard offers a surprising number of benefits on top of the points you earn in this program. With this credit card, you'll receive a complimentary companion coupon each year, a complimentary one-class upgrade each year, a complimentary station lounge pass, and an easier path to tier status.

This card does come with a $79 annual fee, but you won't pay foreign transaction fees on purchases made abroad. Also note that you'll get a 20% rebate on purchases made on Amtrak when you pay with your credit card.

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

Business Insider may receive a commission from The Points Guy Affiliate Network, but our reporting and recommendations are always independent and objective.

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

Advertisement

NOW WATCH: Starbucks is giving away free drinks for the rest of 2019. It's one of the 5 sneaky tactics the coffee chain uses to get you to spend more money.

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article