Most people treat their bank like a utility. You pay the bills, you check the balance, and you occasionally grumble about a monthly fee. But honestly, if you’re sitting on a decent amount of cash and you haven’t looked into the preferred rewards program bank of america offers, you are essentially leaving thousands of dollars on the table every single year. It’s not just about a free checkbook or a waived ATM fee. It is about a mathematical "cheat code" for credit card rewards that most other big banks simply cannot touch.
Banking is competitive. Chase has its Sapphire ecosystem, and Amex has its prestige, but Bank of America did something different. They tied everything together—your checking, your savings, and your Merrill investment accounts. If you have the assets, they give you a "multiplier." That one word changes everything.
How the Tiers Actually Work (And Why $100k is the Magic Number)
The program isn't a one-size-fits-all thing. It’s a ladder. You start at Gold, move to Platinum, and then hit the holy grail: Platinum Honors. There are even Diamond tiers for the truly wealthy, but for most high-earning professionals, Platinum Honors is the sweet spot.
To get in, you need a three-month average combined balance in your accounts. We’re talking about Bank of America checking/savings and, more importantly, Merrill Edge or Merrill Lynch investment accounts. This is the secret. You don't need $100,000 sitting in a low-interest savings account. You can have $100,000 in an IRA or a taxable brokerage account holding VOO or any other ETF.
The Gold tier starts at $20,000. It’s okay. You get a 25% bonus on credit card rewards. Platinum kicks in at $50,000, giving you a 50% boost. But once you hit that $100,000 mark for Platinum Honors, you get a 75% rewards bonus. Think about that. A card that normally pays 1.5% back suddenly pays 2.62% back on everything. That is industry-leading. No other "flat rate" card comes close without a massive annual fee.
The Real-World Math
Imagine you spend $3,000 a month on your credit card. At a standard 1.5% rate, you’re looking at $45 back. With the preferred rewards program bank of america 75% kicker, that same $3,000 spend nets you nearly $79. Over a year, that’s an extra $400 just for having your investments in one specific place. It’s passive income in its simplest form.
The "Unlimited Cash Rewards" Card Hack
If you’re a Platinum Honors member, the Unlimited Cash Rewards card becomes a monster. It’s a $0 annual fee card. Normally, it’s a boring 1.5% cash back card.
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But with the 75% bonus? 2.625% cash back on every single purchase. No categories to track. No "activation" buttons to click every quarter. You just buy groceries, pay for a plumbing repair, or buy a new laptop, and you get 2.625% back.
Then there’s the Customized Cash Rewards card. This one is even more insane for savvy spenders. You choose a category—like online shopping or dining—to get 3% back. With the Platinum Honors boost, that 3% becomes 5.25%.
People spend hours hunting for the perfect "churning" strategy, opening five different cards to get 5% back on specific things. You can just get 5.25% on all your Amazon and Walmart.com orders with one card and a high enough balance in your Merrill account. It’s almost unfair to the people who don't know about it.
What People Get Wrong About the Requirements
I hear this a lot: "I don't want $100,000 in a Bank of America savings account earning 0.01%."
Valid point.
But you don't have to do that. Merrill Edge is a solid brokerage. You can buy the same stocks, bonds, and ETFs you’d buy at Vanguard or Fidelity. By moving your long-term retirement holdings to Merrill, you trigger the rewards status without losing out on market gains. It’s a move of pure efficiency.
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More Than Just Credit Cards: The Hidden Perks
The preferred rewards program bank of america isn't just a credit card play, though that’s the main draw. There are other perks that actually save you a ton of "annoyance money."
- Mortgage Reductions: Platinum Honors members can get $600 off their mortgage origination fee. It’s not a life-changing amount on a $500k house, but it’s $600 you didn't have before.
- Auto Loan Interest: You can get a 0.50% interest rate discount on auto loans. In a high-interest environment, that’s huge.
- No ATM Fees: Platinum and above get no-fee ATM transactions at non-Bank of America ATMs. They even reimburse the fees charged by the other bank (domestically for Platinum, and more broadly for higher tiers).
- Foreign Exchange: If you travel and need physical cash, they give you better rates on foreign currency exchanges.
--- ## Is There a Catch?
Nothing is perfect. The biggest "catch" is the opportunity cost and the friction of moving assets.
If you love the user interface of Fidelity or the research tools at Charles Schwab, moving to Merrill Edge might feel like a step backward. The Merrill interface is functional, but it feels a bit "big bank" compared to some of the sleek fintech apps out there.
Also, you have to stay above the balance threshold. If the market crashes and your $100,000 portfolio drops to $80,000, you don't lose your status immediately. They look at a three-month average, and they usually give you a "grace period" to get your balances back up. But it is something to watch.
Another thing? The customer service. While Preferred Rewards members get a "priority" phone line, it’s still a massive corporation. You’re not getting a dedicated private banker who knows your kids' names unless you move into the Private Bank tiers (multi-million dollar balances).
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The Strategy for Maximum Efficiency
If you want to play this game correctly, here is how you do it.
First, open a Bank of America Advantage Banking account. Then, open a Merrill Edge self-directed brokerage account. Transfer $100,000 worth of assets—maybe your IRA or some long-term index funds.
Wait.
It takes about three months for the "average daily balance" to hit the requirement. Once the system flags you as Platinum Honors, apply for the Customized Cash Rewards and the Unlimited Cash Rewards cards.
Use the Customized Cash card for your "Online Shopping" category to get that 5.25% back. Use the Unlimited Cash card for everything else to get your 2.625%.
A Note on the Diamond Tiers
Bank of America recently added Diamond and Diamond Honors tiers for those with $1 million to $10 million in assets. Honestly? The marginal benefits over Platinum Honors aren't massive for the average person. You get some lifestyle perks and higher-end event access, but the credit card multiplier stays capped at 75%. Platinum Honors remains the "value" play.
Final Insights for the Savvy Banker
The preferred rewards program bank of america is perhaps the most underrated wealth-building tool for the upper-middle class. It rewards loyalty in a way that actually scales with your net worth. While other banks try to lure you in with one-time $500 bonuses, this program pays you every single time you swipe your card, year after year.
If you are already holding assets in a brokerage account elsewhere, the "cost" of switching is mostly just paperwork. In exchange, you turn your daily spending into a high-yield revenue stream.
Actionable Next Steps
- Audit your balances: Check if your combined 401k (if rollover), IRA, and savings hit the $20k, $50k, or $100k marks.
- Consolidate to Merrill: Move a portion of your long-term "buy and hold" investments to Merrill Edge to trigger the 3-month average balance clock.
- Optimize your cards: Once your status is confirmed in the app, switch your Bank of America credit cards (or apply for new ones) to align with the 75% bonus structure.
- Set the Online Shopping category: On the Customized Cash card, the "Online Shopping" category is incredibly broad and usually covers everything from Amazon to food delivery apps, making it the easiest way to max out that 5.25% return.
- Monitor your status: Keep an eye on the "My Rewards" tab in the mobile app to ensure your tier hasn't shifted due to market volatility.