Bank of America rolled out a new rewards program that changes how customers earn points on everyday purchases. The revamped system replaces previous earning structures and offers different point values depending on account type and spending category.
BofA customers now earn rewards through a tiered structure tied to their account balance and relationship with the bank. Customers with higher balances in BofA accounts unlock better earning rates. The program rewards spending across categories like dining, travel, groceries, and gas at different point values. A $25,000 balance unlocks standard rates, while customers maintaining $100,000 or more gain accelerated earning on specific categories.
The core question for savers centers on whether the new rewards justify account maintenance and spending patterns. Point values convert to cash back or travel credits through BofA's redemption portal. The program abandons flat-rate earning in favor of category-based multipliers, which rewards strategic spenders but penalizes those who don't align purchases with bonus categories.
For customers who primarily bank at BofA and maintain meaningful balances, the program delivers real value. Someone spending $3,000 monthly across bonus categories could earn meaningful cash back annually. However, the balance requirement creates friction. Customers must park substantial deposits with BofA to access top-tier rates. This opportunity cost matters when online savings accounts offer 4.5% to 5% APY on the same dollars.
Comparison shopping reveals that dedicated rewards cards often beat BofA's program. The Chase Sapphire Preferred earns 2 to 3 points per dollar on dining and travel. The American Express Blue Business Plus offers flat 2% cash back on purchases under $25,000 monthly. These cards carry annual fees but deliver stronger returns for active spenders.
BofA's program works best for customers consolidating banking relationships and maintaining large balances anyway. It offers convenience