Guide To Bank of America Preferred Rewards

On Feb 22, 2021

Among the larger financial institutions, Bank of America may have the most understated banking benefits. For customers, the returns go beyond everyday spending on rewards credit cards. Bank of America Preferred Rewards ensures that their dedication to smart saving and investing earns them even more bonuses down the line.

With a comparatively low investment, Bank of America offers customers the opportunity to earn more interest on deposits, lower rates on loans and bonuses on their Bank of America credit cards. If your money isn’t helping you unlock better bonuses, it may be time to consider Bank of America Preferred Rewards. This guide will give you a look into the program and help you decide whether or not it makes sense for your lifestyle.

What is Bank of America Preferred Rewards?

Preferred Rewards is the invite-only incentive program of Bank of America and its investment arm, Merrill. Although there is no fee to join, customers must be invited into the program.

Qualifying accounts for Bank of America Preferred Rewards

To qualify, customers must own or co-own an active and eligible Bank of America checking account and hold a minimum three-month combined average daily balance of $20,000 or more. The cash can be held across several Bank of America account types, including:

Bank of America Advantage Banking, savings, money market savings, CDs and IRAs
Merrill investment accounts, including IRAs and the Cash Management Account
Merrill 529 college savings accounts on your banking statement
Revocable grantor trust accounts

Disqualified accounts for Bank of America Preferred Rewards

All accounts must be personal accounts—business accounts or commercial accounts do not qualify for the Preferred Rewards program. Other disqualified account types include:

Irrevocable trust accounts
Uniform Transfers to Minor Acts and Uniform Gifts to Minors Act accounts
Employee benefit plans (including 401(k) accounts) and annuities managed by Bank of America or Merrill

What are the Bank of America Preferred Rewards tiers?

Based on your average balance across accounts on a rolling three-month average, there are three tiers in the Bank of America Preferred Rewards program. Earning Gold status requires a minimum of $20,000, while higher tiers are unlocked as your balances grow.

	Preferred Rewards Gold	Preferred Rewards Platinum	Preferred Rewards Platinum Honors
Minimum three-month average balance	$20,000	$50,000	$100,000
Savings interest rate boost	5%	10%	20%
Credit card rewards bonus	25%	50%	75%
No-fee ATM transaction allowance	0	1 per statement cycle 12 per year	Unlimited
Merrill Guided Investing fee discount	0.05%	0.10%	0.15%
Mortgage origination fee discount	$200	$400	$600
Home equity line of credit interest rate discount	0.125%	0.250%	0.375%
Auto loan interest rate discount	0.25%	0.35%	0.50%
Select banking services	No fees	No fees	No fees

Gold tier benefits

Individuals and families who have at least $20,000 saved across Bank of America accounts qualify for Gold’s lowest tier. This level offers an entry point into the program, with the incentive to save even more over time.

The biggest bonus in this tier comes with qualifying Bank of America credit cards and the reduction in mortgage origination fees. Gold members get an additional 25 percent rewards bonus when spending on eligible cards, including the Bank of America® Cash Rewards credit card, Bank of America® Travel Rewards credit card, and Bank of America® Premium Rewards® credit card.

If you decide to purchase a new home or refinance your current mortgage, your Gold status will also help you save money as well. Low-tier members get a $200 reduction on the origination fee of a new purchase or refinance mortgage, which can help you reduce closing costs and save even more on your monthly home payment.

Other benefits from the Gold tier include a 5 percent interest rate booster on a Bank of America Advantage Savings account and a 0.05 percent program fee discount…