Most banking "perks" are total garbage. You get a plastic water bottle for opening an account or maybe 0.01% more interest on a savings account that’s already losing money to inflation. It's frustrating. But Bank of America Preferred Rewards is different, and honestly, it’s probably the most underrated financial hack for anyone who actually has some money sitting in the bank.
If you have at least $20,000 across your Bank of America and Merrill investment accounts, you’re in. That’s the gatekeeper.
But here’s the thing people miss: it’s not just about the bank. It’s about how this program turns their credit cards—specifically the Customized Cash Rewards and the Premium Rewards cards—into absolute monsters. We’re talking about getting 5.25% back on gas or online shopping. That’s unheard of in the standard credit card world where 3% is considered "elite."
The Three Tiers (And Why the Top One Is the Only One That Matters)
The program is split into Gold, Platinum, and Platinum Honors. To get into Gold, you need a three-month average combined balance of $20,000. For Platinum, it’s $50,000. For the holy grail—Platinum Honors—you need $100,000.
Now, $100k is a lot of cash to keep in a checking account. Don’t do that. That would be a massive mistake because Bank of America’s standard interest rates are, frankly, pathetic. The trick is that Bank of America owns Merrill Edge. You can move your IRA, your 401(k) rollovers, or your taxable brokerage account over to Merrill, buy some low-cost VOO or VTI index funds, and boom—you’ve hit Platinum Honors without leaving your money to rot in a 0.01% savings account.
When you hit that $100,000 threshold, your credit card rewards get a 75% boost.
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Think about that math for a second. The Unlimited Cash Rewards card normally gives you 1.5% back on everything. With the 75% Platinum Honors boost, that jumps to 2.625% back on every single purchase. No categories to track. No limits. Just 2.62% back on everything from your taxes to your dental bill. It basically makes every other "2% back" card on the market obsolete.
Is the Merrill Edge Experience Actually Good?
You've probably heard horror stories about legacy bank brokerages. Usually, they’re clunky, expensive, and feel like they’re stuck in 1998. Merrill is... fine. It’s not as slick as Robinhood, and it doesn't have the hardcore tools of Thinkorswim. But for a "buy and hold" investor, it does exactly what it needs to do.
They offer $0 trades on stocks and ETFs. That’s the baseline now, but it’s good they didn't try to get cute with fees. The interface is a bit corporate, sure. But if the "cost" of using a slightly boring brokerage is getting thousands of dollars in extra credit card rewards every year, most people find that a very easy trade to make.
The Real Perks Nobody Mentions
Everyone talks about the credit cards, but there are other moving parts to Bank of America Preferred Rewards that actually save you a decent chunk of change if you use the bank for everything.
- Mortgage Reductions: Platinum Honors members get $600 off their mortgage origination fee. It’s not life-changing, but it’s a free dinner or five.
- Auto Loans: You can get a 0.50% interest rate discount. On a $50,000 car loan, that’s real money over five years.
- No ATM Fees: Platinum and Platinum Honors members get those annoying out-of-network ATM fees refunded. It feels good to walk up to any ATM in a dive bar and not worry about the $5 charge.
- Foreign Currency: If you still use cash when traveling, they give you a better exchange rate and free shipping on the currency.
What Most People Get Wrong About the Math
I see people all the time saying, "I’m not moving $100k to BofA just for a credit card."
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They’re looking at it backwards. You aren't "giving" them the money. You are parking your investments in a place that pays you a "dividend" in the form of massively subsidized lifestyle costs. If you have $100k in a Vanguard account, you’re getting 0% "perks" from Vanguard. If you have that same $100k in Merrill, you’re getting the same market returns plus an extra $1,000 to $2,000 a year in credit card rewards and waived fees.
It’s an arbitrage play.
The "Customized Cash" Hack
The Bank of America Customized Cash Rewards card is the secret weapon of this whole ecosystem. By default, it gives you 3% back on a category of your choice (like online shopping, dining, or travel) on up to $2,500 in quarterly spend.
With Platinum Honors, that 3% becomes 5.25%.
If you’re a heavy Amazon shopper or you buy everything online, you can basically get a 5.25% discount on your entire life. Some people even open multiple versions of this card (yes, you can do that) to cover different categories. One for online shopping, one for gas, one for home improvement. It’s a bit of a "power user" move, but it’s how people end up with an effective 5% cashback rate on almost every penny they spend.
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The Downside: What They Don't Tell You
It’s not all sunshine. Bank of America is still a "big bank." Their customer service can be a bureaucratic nightmare if something goes wrong. If you’re used to the concierge-level service of a local credit union or a boutique firm, you’re going to be disappointed. You are a number in a spreadsheet.
Also, the "rolling average" rule can be annoying. You don't get the perks the second you deposit the money. They look at your average balance over three months. If you dip below the threshold, you don’t lose the status immediately—they usually give you a "grace period"—but you have to stay on top of it.
And let’s talk about the savings accounts again. Even if you are a Diamond member (the $1M+ tier), the interest rates on their standard savings accounts are often lower than what you’d get at a random online bank like Ally or Wealthfront. The strategy only works if you use Merrill for the bulk of your "Preferred" balance.
How to Actually Set This Up Without Losing Your Mind
If you want to do this, don't just walk into a branch and start opening accounts. The branch employees are often incentivized to sign you up for products you don't need.
- Open the Merrill Edge account first. Transfer your assets (In-Kind transfer, so you don't trigger taxes by selling your stocks).
- Wait for the funds to settle. This can take a week or two.
- Open a basic checking account. You only need one.
- Enroll in Preferred Rewards. It’s not automatic! You have to click a button in the app or on the website once your balance shows up.
- Apply for the cards. Wait until your status is officially "Active" before applying for the Premium Rewards or Customized Cash cards so you get the boosted sign-up bonus if one is running.
Why This Matters in 2026
The credit card landscape is getting stingy. We’ve seen other banks nerf their rewards programs or add massive annual fees. Bank of America has kept this program remarkably stable because it does exactly what they want: it makes "sticky" customers. Once you have your mortgage, your IRA, and your checking account all under one roof, you’re probably never leaving.
They are betting that the convenience and the rewards will keep you from shopping around for a better mortgage rate or a better brokerage. For the savvy user, you can take the rewards and still shop around, but most people won't.
Actionable Steps for the Aspiring Platinum Member
- Audit your current balances. Do you have $20k, $50k, or $100k spread across different banks? If you have $40k in a 401(k) and $10k in an emergency fund, you’re already at the Platinum level.
- Move the "Lazy Money." If you have cash sitting in a 0% checking account elsewhere, move it to a Merrill Edge self-directed account and buy a Money Market Fund like TTTXX (BlackRock) which currently yields significantly more than any standard savings account while still counting toward your status.
- Choose your "Category." If you get the Customized Cash card, set your 3% (or 5.25%) category to "Online Shopping." In 2026, almost everything counts as online shopping, including many apps and services.
- Ignore the "Tier 4" (Diamond). Unless you have $1 million or $10 million, don't worry about the higher tiers. The jump in rewards from Platinum Honors to Diamond is negligible compared to the jump from nothing to Platinum Honors.
The Bank of America Preferred Rewards program is a math game. If you play the game by their rules but use your own strategy, you end up with a cashback setup that is mathematically impossible to beat anywhere else. Just don't let your cash sit in their 0.01% savings accounts. That’s how they win. Move it to Merrill, and that's how you win.