Bank of America has announced further details of their highly-anticipated new premium credit card.
The Bank of America Premium Rewards Credit Card will be available for application starting in September 2017. Designed to be a competitor with other banks’ premium cards, Bank of America’s new offering will be going head-to-head with the Chase Sapphire Reserve®, The Platinum Card® from American Express, and the Citi Prestige® Card.
Low Annual Fee
The annual fee is one thing that will set this Bank of America Premium Rewards Credit Card apart from the others. Jason Gaughan, a card product executive at Bank of America, said that the new card will have a $95 annual fee, which compares favorably to the $450 or $550 annual fee for the other banks’ cards.
However, we have yet to see a full list of benefits from Bank of America, so it is hard to say if that will be an area that suffers due to the low annual fee. So far, the benefits we have seen seem to indicate this will be the case.
When launched, the Bank of America Premium Rewards Credit Card will have a sign-up bonus of 50,000 points for spending $3,000 in the first 3 months. This is lower than offers we have seen at launch and throughout the past few years on the premium cards from Chase, Amex, and Citi.
Tiered Points Earning
However, there’s something else that makes the Bank of America Premium Rewards Credit Card unique from any other product available: the number of points you earn on spending will depend on how much money you have deposited with Bank of America.
This has not been done by any other bank before, and it will heavily benefit those who either have a prior banking relationship with Bank of America or are willing to move some of their assets over.
Basic cardholders of the Bank of America Premium Rewards Credit Card will earn 2 points per dollar on travel and dining purchases, and 1.5 points per dollar on everything else. This isn’t a bad earning structure, and it is competitive with the other premium cards.
If a cardholder has at least $20,000 in checking, savings, or investment accounts with Bank of America, they begin to earn higher multipliers. Customers who have between $20,000 and $50,000 with Bank of America will earn 2.5 points per dollar on travel and dining and 1.875 points per dollar on all other spending. Customers with $50,000 to $100,000 will earn 3 points per dollar on travel and dining and 2.25 points per dollar on remaining charges.
At the top end, cardholders who have over $100,000 with Bank of America will earn 3.5 points per dollar on travel and dining and 2.625 points on everything else. That is a lot of money to have committed to Bank of America to get the highest multipliers, but if you already bank with them or are looking to open an investment account, this may be great news for you.
Bank of America has said that they are entering the premium card market in an attempt to get their current customers to choose this card over one of their competitors’ offerings. They also hope this card’s earning structure will lead to additional deposits.
Unless you currently have a large portfolio with Bank of America, this card does not look like anything special. The low annual fee is tempting, but unless they announce some other significant benefits, it just doesn’t look like a real competitor for the Chase Sapphire Reserve®, The Platinum Card® from American Express, or the Citi Prestige® Card.
It appears that we will have to wait for the full card details to see if this is one to apply for at launch.