You’ve probably seen the mailers. Or maybe you were just scrolling through your Bank of America app and saw that shiny, dark card staring back at you. The Bank of America Premium Rewards card. It sounds fancy. It looks expensive. But honestly, most people get the math totally wrong when they’re trying to figure out if it belongs in their wallet.
Credit cards are weirdly emotional for some people, but this one is basically a giant math problem disguised as a piece of plastic. If you’re just a casual spender, it’s a decent card. If you’re a Preferred Rewards member with a big chunk of change sitting in a Merrill investment account, it’s arguably the most powerful "catch-all" card on the market. That’s a bold claim. I know. But the numbers don’t lie.
Let’s be real: $95. That’s the annual fee. In a world of $695 Amex Platinums, it feels like pocket change. But you shouldn't pay for things you don't use.
What You Actually Get With the Bank of America Premium Rewards Card
Most review sites will bore you with a list of points and percentages. Let’s cut through that. At its base level, this card gives you 2 points for every dollar spent on travel and dining. Everything else gets 1.5 points. Simple.
But "simple" isn't why people get this card.
The real magic—and the reason people obsess over it—is the relationship bonus. Bank of America has this thing called the Preferred Rewards program. If you have a combined balance of $100,000 or more in Bank of America banking accounts or Merrill investment accounts (like an IRA or a taxable brokerage), you hit the Platinum Honors tier.
Suddenly, your 1.5% base rate gets a 75% boost.
That means you’re earning 2.625% back on every single purchase. Every. Single. One. Think about that for a second. While other people are juggling five different cards to get 3% on gas or 4% on groceries, you’re getting over 2.6% on your taxes, your plumber, your new couch, and that weirdly expensive artisanal sourdough. It's the ultimate "lazy" setup for high-net-worth individuals who hate playing the "which card do I use now?" game.
The Travel Credits Everyone Forgets
You get a $100 Airline Incidental Statement Credit every year. It’s meant for things like baggage fees, seat upgrades, or in-flight drinks. It’s not for the tickets themselves.
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Here’s the thing: the credit is for the calendar year. If you get the card in November, you can use the $100 credit before December 31st and then get another $100 credit starting January 1st. You’ve basically made $105 in profit before your first anniversary. It’s a bit of a loophole, but it works.
Then there’s the $100 Global Entry/TSA PreCheck credit every four years. Standard stuff for a "premium" card, but it adds to the value proposition. Between the airline credit and the PreCheck credit, the bank is basically paying you to hold the card.
The Merrill Lynch Connection
You might be thinking, "I don't want to keep $100,000 in a checking account that earns 0.01% interest."
Good. You shouldn't. That would be a terrible financial move.
The secret sauce is Merrill Edge. You can move your long-term investments—low-cost index funds, stocks, ETFs—into a Merrill Edge brokerage account. These count toward your Preferred Rewards balance. You get the high-octane credit card rewards without sacrificing the growth of your portfolio. It’s a strategy used by FIRE (Financial Independence, Retire Early) enthusiasts and savvy investors to squeeze every bit of yield out of their spending.
I’ve seen people move their entire Vanguard or Fidelity IRA over to Merrill just to unlock this tier. Is it worth the hassle? If you spend $50,000 a year on your card, that 2.625% rate versus a standard 1.5% or 2% card adds up to hundreds of extra dollars in your pocket every year. For some, that's a free vacation. For others, it’s just a nice win against the system.
Where the Card Falls Short
It’s not perfect. No card is.
If you love "transfer partners," this card will probably frustrate you. With Chase or Amex, you can move your points to Hyatt or Emirates and get 5 cents per point in value by booking first-class suites. You can't do that here. 100 points = $1. Period. It’s a cash-back card wearing a travel card's clothing.
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Also, the "travel" category is a bit broad, but it doesn't include everything. It covers airlines, hotels, car rentals, and even things like tolls and parking. But don't expect it to trigger on a "travel" purchase from a random third-party site that codes as "services."
And let's talk about the app. Bank of America's interface is... fine. It's functional. But it doesn't have the slick, modern feel of a Capital One or an American Express app. It feels like a bank. Because it is a bank.
Comparing the "Premium" to the "Elite"
Bank of America recently introduced the Premium Rewards Elite card. It has a $550 annual fee.
Wait. Why would you pay $550 when the $95 version exists?
The Elite version gives you Priority Pass with restaurant access (which is getting rarer these days), a $300 airline credit, and a 20% discount when you book flights through their portal using points. If you’re a Platinum Honors member, that 20% discount effectively makes your base earn rate 3.28% towards travel.
That is massive. But it requires you to use their booking portal. If you’re a "book direct" kind of person to keep your airline status and hotel perks, the standard $95 Premium Rewards card is usually the smarter, leaner choice.
Real World Example: The "Home Renovation" Play
Imagine you're doing a $40,000 kitchen remodel.
- Standard 1.5% card: You get $600 back.
- Bank of America Premium Rewards (Platinum Honors): You get $1,050 back.
That’s a $450 difference on a single project. Most people don't think about their credit card as a way to "discount" their contractor, but that's exactly what this is. It's a 2.6% discount on life.
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Is the Underwriting Tough?
Bank of America can be quirky. They have something called the "2/3/4 rule."
- They won't give you more than 2 cards in 2 months.
- No more than 3 cards in 12 months.
- No more than 4 cards in 24 months.
They also really value that existing relationship. If you walk in off the street with no history with the bank, your odds are okay. But if you've had a checking account there for five years, they're much more likely to hand you a high credit limit.
Also, watch out for the "New Account" sensitivity. If you've opened six credit cards in the last six months, Bank of America will likely decline you, even with a 800 credit score. They like stability. They want to be your primary bank, not just another notch on your "churning" belt.
Making the Decision
Stop looking at the shiny metal (yes, it's a heavy card). Look at your balances.
If you have less than $20,000 with Bank of America, this card is just "okay." There are better 2% no-fee cards out there, like the Wells Fargo Active Cash or the Citi Double Cash.
If you have $100,000+ across your accounts, this isn't just a good card; it's arguably a mandatory one for your wallet. The "opportunity cost" of using any other card for non-category spending is simply too high.
Next Steps for Maximum Return:
Check your aggregate balances across all your Bank of America and Merrill accounts today. If you are hovering near $100,000, consider consolidating your stray IRAs or brokerage accounts to hit that Platinum Honors tier before you apply. Once you are in the program, wait for the status to update in your portal—usually by the 3rd or 4th of the following month. Only then should you pull the trigger on the Premium Rewards card to ensure you're getting that 75% boost from day one. When the card arrives, immediately go into the benefits center and use that $100 airline credit on something like United TravelBank funds or Southwest Gift cards to effectively "erase" the annual fee for the first year.
The math works if you make it work. Just don't let the points sit there forever—cash them out into your savings account and let that money actually do something for you.