Bank of America Is Adding New Rewards for Many Customers — and Slashing Rewards for Others

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On May 27, Bank of America is making a big change to its loyalty program. The current Preferred Rewards program will be replaced with “BofA Rewards.”

Anyone with a Bank of America personal checking account will qualify for BofA Rewards — there’s no more minimum balance. That means many customers could see their BofA credit card rewards go up by 10% or more, among other benefits.

However, there’s also bad news for some Preferred Rewards members with higher balances.

Let’s go over the highlights of this update, as well as how to make the most of it.

New membership tiers

The current Preferred Rewards program has four tiers, based on your combined balance across Bank of America and Merrill accounts:

• Gold: $20K to $50K
• Platinum: $50K to $100K
• Platinum Honors: $100K to $1M
• Diamond Honors: $1M+

The new BofA Rewards tiers look like this:

• Member: $30K
• Preferred Plus: $30K to $100K
• Preferred Honors: $100K to $1M
• Premier: $1M+

That means a lot of people who don’t qualify for Preferred Rewards will qualify for BofA Rewards.

More benefits for some — and reduced benefits for others

Here’s a breakdown of some of the key benefits of BofA Rewards and how it’s different from the current Preferred Rewards program.

Member tier ($30K)

Key benefits:

• 10% credit card rewards bonus
• $100 mortgage fee discount
• 0.10% auto loan discount

Changes:

• New benefits for customers with under $20K
• Reduced benefits for current Gold Tier members with balances between $20K and $30K

Preferred Plus tier ($30K to $100K)

Key benefits:

• 25% credit card rewards bonus
• $300 mortgage fee discount
• 0.25% HELOC rate discount
• 0.25% auto loan discount

Changes:

• Same or upgraded benefits for current Gold Tier members with balances between $30K and $50K
• Reduced benefits for current Platinum Tier members

Preferred Honors tier ($100K to $1M)

Key benefits:

• 50% credit card rewards bonus
• $600 mortgage fee discount
• 0.375% HELOC rate discount
• 0.35% auto loan discount
• Up to $96/year in subscription credits (includes streaming services and news outlets)

Changes:

• Reduced credit card rewards bonus and auto loan discount for current Platinum Tier members
• New subscription credit for current Platinum Tier members

Premier tier ($1M+)

Key benefits:

• 75% credit card rewards bonus
• 0.375% mortgage fee discount
• 0.625% HELOC rate discount
• 0.50% auto loan discount
• Up to $180/year in subscription credits

Changes:

• New subscription credit for current Diamond Honors Tier members

Other changes

Some banking services (such as cashier’s checks and wire transfers) will be free for members in the Preferred Plus tier or higher, but not the Member tier.

BofA Rewards will also add some benefits whose value is hard to put into numbers, like:

• More discounts and cash back offers through BankAmeriDeals
• Fraud and identity monitoring for members in the Preferred Plus tier or higher
• “Lifestyle benefits” for Preferred Honors and Premium tier members, including curated experiences and special offers from premium brands and services

How to enroll

If you’re not a current Preferred Rewards member

To join the new BofA Rewards program, all you need to do is:

1. Open a Bank of America personal checking account, if you don’t already have one.
2. Enroll on or after May 27 through the “BofA Rewards” section of your online account or mobile app.

Your new benefits will activate within 30 days of enrollment.

If you are a current Preferred Rewards member

You will automatically be enrolled in BofA rewards. If your benefits are subject to change, you’ll keep your current Preferred Rewards tier for at least six months.

How to make the most of BofA Rewards

Use a Bank of America credit card that’s eligible for a rewards boost

This is the best and easiest way to take advantage of BofA Rewards. Many Bank of America credit cards will get the rewards boost of 10% to 75%.

Avoid checking account maintenance fees

Monthly maintenance fees are waived for members in the Preferred Plus tier or higher.

However, customers in the Member tier may pay a maintenance fee of $4.95 or more per month unless they meet certain requirements, like a minimum balance or direct deposit. Be sure to check the terms of your checking account, because maintenance fees could eat into any rewards you earn.

BofA Rewards is a mixed bag, but more customers will benefit

BofA Rewards will be a downgrade for some Preferred Rewards members, despite the new “soft” benefits. In particular, current Platinum and Platinum Honors members won’t love seeing their credit card rewards bonuses drop by 25 percentage points.

However, the new Member tier opens up some rewards for every Bank of America checking account holder with balances under $30K. And that means a lot more people stand to benefit, rather than lose out.

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