Bank of America rolled out a new rewards program that changes how customers earn points on purchases. The program moves away from traditional percentage-based cash back toward a tiered earning structure tied to account balances and spending patterns.
Here's what changed. BofA now ties rewards earnings to your total relationship with the bank. Customers with higher balances in BofA accounts earn accelerated points on everyday purchases. The bank restructured how much you earn on different purchase categories, affecting everything from groceries to gas to dining.
For typical customers, this matters because the earning rates directly impact how fast rewards accumulate. Someone spending $500 monthly on groceries, $200 on gas, and $300 on dining will see different point accumulation depending on their account balance tier. A customer with $10,000 in BofA deposits earns at a different rate than someone with $100,000 held across savings and checking accounts.
The rewards themselves redeem as cash back, travel credits, or transfers to partner airlines and hotels. One point equals one cent in value for most redemptions, though travel bookings through BofA's portal sometimes offer higher redemption values.
BofA's move reflects broader industry trends. Banks increasingly tie rewards to account relationships rather than spending alone. This favors customers who maintain substantial balances or keep multiple accounts at the institution.
Competitors like Chase and Citi offer different approaches. Chase Sapphire cards earn flat 3 percent on dining and travel without balance requirements. American Express Blue cards reward high spenders with no account balance minimums.
The practical question for savers comes down to math. Compare your expected annual earnings under BofA's new structure against what you'd earn with a rewards credit card from another issuer. If you maintain $50,000 in BofA accounts, the accelerated rates might exceed what a standalone rewards card delivers. If