Bank of America launched a revamped rewards program that fundamentally changes how cardholders earn points. The new structure replaces category-based earning rates with a tiered system based on account balances and spending levels.
Here's what changed. BofA's redesigned program now ties rewards to your total relationship with the bank. Customers with higher balances in checking and savings accounts unlock better earning rates across all their credit cards. This marks a shift from the previous model where individual cards offered fixed rewards on specific purchase categories.
The tiered benefits work this way. Customers maintaining lower balances earn base rewards, typically 1 point per dollar spent. Those with $20,000 to $100,000 in qualifying deposits move to the next tier and earn accelerated rewards on all purchases. The highest tier requires $100,000 or more and delivers the best rates.
For ordinary cardholders, this setup creates both opportunities and complications. If you already maintain substantial balances at BofA, the new program rewards your loyalty with higher earning rates without requiring you to juggle multiple cards with different category bonuses. You consolidate rewards across all your BofA cards while earning more.
The trade-off matters for customers with smaller balances. Those without $20,000 sitting in BofA accounts don't qualify for tier upgrades. You earn at base rates regardless of spending volume. This penalizes people who bank elsewhere or keep minimal balances.
Card annual fees remain unchanged. Standard BofA credit cards continue charging $0 or annual fees up to $95 depending on the specific card. Premium cards with travel benefits and concierge services cost more.
Compare this against competitors like Chase and American Express, which stick with fixed category bonuses. Chase's Freedom Unlimited still delivers 1.5% back on all purchases. American Express doesn't require bank balances to unlock rewards