Bank of America Premium Rewards

Premium Rewards is effectively two different cards depending on how much money you keep at Bank of America. On its own it is a travel card with a $95 annual fee: 2 points per $1 on travel and dining, 1.5 points per $1 on everything else, and a 60,000 point online welcome bonus after $4,000 of spending in the first 90 days, which Bank of America values at $600. Layered with the BofA Rewards program (previously called Preferred Rewards), the same card can earn up to about 2.62% on its 1.5x base rate at the Premier tier, which requires $1,000,000 in combined balances. Whether this card makes sense turns almost entirely on which of those two versions you qualify for. The relationship math deserves to be spelled out. BofA Rewards adds a 10% to 75% bonus to your rewards depending on your tier: the Premier tier ($1,000,000 in combined balances across Bank of America and Merrill accounts) gets a 75% bonus, and the lower tiers get smaller ones. At the base 1.5x, points worth about 1 cent each (the $600 value Bank of America puts on the 60,000 point bonus) cover the $95 fee after roughly $6,300 of annual spending, before counting any credits. At about 2.62% the same $95 takes roughly $3,600. Reaching the Premier tier is a decision about where your savings and investments live rather than a decision about a credit card. The costs are modest and easy to read. The $95 annual fee is the recurring cost, and Bank of America lists up to $100 a year in airline incidental statement credits and up to $100 in airport security statement credits (TSA PreCheck or Global Entry) every four years, which can offset part of the fee if you use them. The welcome bonus, 60,000 points for $4,000 in 90 days, is worth $600 by the issuer's own valuation, which covers more than six years of the fee if you keep the card that long. Bank of America says there is no limit on the points you can earn, and the card has no foreign transaction fees. The APR runs 19.74% to 27.74% variable with no introductory promotion, so any balance you carry accrues from the first statement and at rates that erase a 2.62% return many times over. Bank of America looks for good to excellent credit, roughly 700 or higher. Do not take this card if your banking sits elsewhere and you have no intention of moving it, because the version you would receive earns a base 1.5x outside travel and dining. Do not take it if you would revolve a balance. And do not expect a premium travel product at $95: this is a return on spending card with a couple of travel conveniences attached, not a lounge and status card.