BofA Announces New Additions to Customized Cash Rewards Card
Bank of America Customized Cash Rewards Card

BofA Announces New Additions to Customized Cash Rewards Card

Bank of America has unveiled some updates to its Customized Cash Rewards and, specifically, two of its rewards category options.

About the updates:

With the Customized Cash Rewards card, customers can select one eligible category and earn 3% back on purchases in that category. Now, Bank of America has announced updates to two options, giving customers even more ways to earn.

The first category seeing an expansion is gasoline. Now, this option will include EV charging stations as well. Meanwhile, cable, streaming, internet, and phone plans will now qualify for the online shopping category.

In addition to these updated categories, other options currently include dining, travel, drug stores & pharmacies, and home improvement & furnishings. Cardholders can change their 3% category selections up to once per month. Plus, cardholders earn 2% back at grocery stores and wholesale clubs and 1% back on all other purchases. However, the 3% and 2% categories are capped at $2,500 in combined purchases (chosen category plus grocery stores and wholesale clubs) each quarter.

While these earning rates are the base for cardholders, those who qualify for the Bank of America Preferred Rewards program can enjoy increased rates. Depending on their tier, customers can earn between 25% to 75% more. For example, those who reach the Platinum Honors Tier (which requires a three-month combined average daily balance of at least $100,000 between Bank of America and Merrill accounts) can earn a 75% bonus on credit card rewards. For the Customized Cash Rewards card, this would equate to 5.25% back on a selected eligible monthly category, 3.5% back on grocery and warehouse club purchases, and 1.75% on all other purchases.

What they’re saying:

Commenting on the minor refresh to the card, BofA Head of Consumer Credit Card Products Jason Gaughan said, “We are constantly looking for ways to enhance our products to align with our clients’ needs and have observed growing demand for electric vehicle charging and streaming services.” Gaughan added, “We’re thrilled to introduce these new additions to our Customized Cash Rewards product and to offer our clients more ways to maximize rewards based on their own personal spending habits.”

My thoughts:

First, including EV charging in gasoline rewards categories seems to be a growing trend. Most recently, both Chase and Discover featured EV charging along with gas station purchases in their Q3 2023 rotating categories. With more electric vehicles hitting the road, this adjustment strikes me as a no-brainer.

As for the other change to the Customized Cash Rewards, I think that adding streaming, phone plans, and more to the online shopping category makes that option one of the card’s most compelling. With other cards singling out streaming services as their own category, putting these services with mobile plans and general online shopping seems quite generous.

With this update, the Bank of America Customized Cash Rewards does grow more interesting in my opinion. In particular, those who can qualify for the upper tiers of BofA Preferred Rewards could really benefit from the card and the potential 5.25% back in their chosen category. Then again, the downside of the card is its fairly specialized nature versus a card that offers rewards in a variety of categories or across the board (and without rewards caps). But, in the right hands, the newly-adjusted card could prove to be a powerful cashback tool.

Author

Kyle Burbank

Head Writer ~ Fioney
Kyle is the head writer for Fioney. He is a personal finance nerd, constantly looking for new apps and services to test and incorporate into his own financial game plan. In addition to his role at Fioney, he's written for other publications including Born2Invest, Lifehack, and Laughing Place, as well as his own site Money@30. He also creates personal finance and travel-related videos for Fioney's YouTube channel, which has garnered more than 2 million views. Currently, Kyle resides in Springfield, Missouri with his wife of 10 years. Together, they enjoy traveling (including visiting Disney Parks around the world), dining, and playing with their dog Rigby.

Other Articles by Kyle Burbank

stack of credit cards

Credit Card Delinquency Rates Reach Decade High in Q4 2023

According to new data from the Federal Reserve Bank of Philidelphia, credit card delinquencies grew to new "series highs" in the last quarter of 2023. About the report: As Bloomberg reports, credit card delinquencies increased in the fourth quarter. In total, nearly 3.5% of consumer card balances were at least 30 days late. Furthermore, the percentage of card accounts that were 30, 60, and 90 days past due all rose during...
mother talking to her son about credit cards

Survey: 76% of Gen Zers Reports Experiencing Financial Stress

In conjunction with Financial Literacy Month, a new survey from Greenlight highlights financial stress and other money matters among those of different generations. About the survey: Greenlight recently surveyed 2,310 Americans ranging from ages 10 to 59 and asked them about their financial wellness. Specifically, the survey broke respondents into general groups, including Gen Alpha kids (10 to 13-year-olds), Gen Z teens (14 to 19), Millennial parents with Gen Alpha...
two woman standing next to two Petal cards

Empower Financial to Acquire Petal

The popular credit-building card company Petal is being acquired. About the deal: Empower Financial (not to be confused with Empower, which acquired Personal Capital and rebranded it to Empower Personal Dashboard) has signed a definitive agreement to acquire Petal. Details of the deal were not disclosed. However, Empower anticipates the transition to close later this quarter. News of this acquisition also comes as Empower has completed its purchase of Cashalo....
The "Email" field is empty, you must enter some text to proceed.The text you entered in the "Email" field appears to be invalid, please edit it and try again
Get the Latest News Delivered to Your Inbox

A Guide to Building Credit and Increasing Your Credit Scores

When it comes to credit, there’s some good news. The average credit score in the United States has been steadily rising in recent years, coming in at 715 in 2023. That may be because, today, consumers not only have more ways to access their credit reports and scores than ever before but also because there are an increasing number of options that Americans have for building credit in the first...

2024 SoFi Checking and Savings Review

Ever since I started taking an interest in the FinTech sector, one company whose name I’ve seen pop up over and over again is SoFi. Lately it seems as though that theme has been sent into overdrive as the company has not only become a household name thanks to its stadium naming rights deal but also because of the company’s continued product expansions. The most interesting development in my mind...
Brim logo

Brim Financial Raises $85 Million as It Eyes Global Expansion

Toronto-based FinTech infrastructure startup Brim Financial has announced a new funding round. About the round: Brim has revealed an $85 million round. The Series C was led by EDC Investments while new investor Vistara Growth and returning investors White Owl Group, Epic Ventures, and Zions Bank also participated. To date, the company has now raised $110 million including a Series B in 2021. According to Brim, the latest funding will...
Chase Freedom Flex card

Chase Reveals Q2 2024 Freedom 5%(+) Bonus Categories

Chase has announced its bonus category picks for the second quarter of 2024 — including some interesting twists. About the categories: As April approaches, Chase has revealed what categories Freedom and Freedom Flex cardholders can earn bonuses on. From April 1st through June 30th, customers can earn 5% (or more) in three categories: Amazon.com, Hotels, and Restaurants. Similar to how Chase embraced a "New Year, New Me" theme last quarter,...

FedEx Announces Winners of 11th Annual 2023 Small Business Grant Contest

Nearly three months after the entry period ended, FedEx has announced the winners of its 11th annual Small Business Grant Content. This year's event saw more than $300,000 in funds going to a variety of small businesses across the nation. Last month, the company revealed 100 finalists, with that list now being narrowed down to just 10 winners. This year's grand prize winners included KindVR, The Cupcake Collection, Up In...