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Bank of America Revamps BofA Rewards Program and Tiers
Later this year, Bank of America will be making some notable updates to its Rewards Program.
About the Changes to BofA Rewards Program:
Starting May 27th, Bank of America will be rolling out revisions to its Preferred Rewards, renaming the program BofA Rewards. These changes also include updated tier names and qualifications.
There will now be four Rewards tiers, which will continue to be based on customers’ three-month average account balances. Qualifying accounts include both Bank of America banking accounts as well as Merrill investment accounts. The new tiers are as follows:
- Member Tier: Under $30,000
- Preferred Plus Tier: $30,000 to $99,999
- Preferred Honors Tier: $100,000 to $999,999
- Premier Tier: $1 million+
For comparison, here are the current BofA Rewards tier names and thresholds:
- Member Tier: Under $20,000
- Gold Tier: $20,000 to $49,999
- Platinum Tier: $50,000 to $99,999
- Platinum Honors Tier: $100,000-$999,999
- Diamond Honors Tier: $1 million+
The adjustments to these tiers will also impact the program’s popular credit card rewards bonuses. Preferred Plus members will earn a 25% bonus, while Preferred Honors will earn 50% and Premier tier members will earn 75%. Notably, the 75% bonus was previously available starting at the Platinum Honors tier, meaning that the balance threshold for this bonus was increased from $100,000 to $1 million. Meanwhile, those at the regular Member tier can earn a 10% bonus on rewards.
Elsewhere, BofA is adding a new monthly credit opportunity for Preferred Honors and Premier tier members. Preferred Honors customers can earn up to $8 a month toward select subscription service purchases. This increases to $15 a month for the Premier tier.
While the transition from Bank of America Preferred Rewards to BofA Rewards will begin for consumers this May, an FAQ answer on the bank’s site notes that no updates to the Preferred Rewards for Business program are expected at this time.
What They’re Saying:
Announcing these updates, Bank of America’s Head of Consumer and Small Business Products & Analytics Mary Hines Droesch said, “BofA Rewards ensures every client, no matter where they are in their financial journey, can experience meaningful benefits and feel valued for their relationship with us. Clients want loyalty programs that offer the flexibility to choose benefits that reward their ambitions. BofA Rewards delivers differentiated value that evolves with clients’ goals.”
My Thoughts:
Unfortunately, these are negative changes for many customers. As mentioned, the biggest update is that customers with six-figure balances who were earning 75% bonuses on their credit cards will see that decrease to 50% (unless they bring their balance up to $1 million). In the case of the Unlimited Cash Rewards, that changes the card from earning 2.62% back on everything to 2.25% back. Granted, that’s still better than most, but a downgrade is a downgrade.
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