CHARLOTTE, N.C.—Just how fierce the competition credit unions face in the credit card space can be seen in new offerings from Bank of America, which has enhanced cash back rewards offerings for new cardholders of the Customized Cash Rewards credit card and Unlimited Cash Rewards credit card during their first year.
According to BofA, available nationwide as of June 1, clients who open a Customized Cash Rewards card will earn 6% cash back in the category of their choice (up from 3%) during the first year. Clients who open an Unlimited Cash Rewards card will earn 2% cash back (up from 1.5%) on all purchases during the first year, with no limit to the amount of cash back they can earn.
“We are committed to providing our clients with credit cards designed to help them make the most of their everyday spending – now with an extra boost to help navigate the year ahead,” Lora Monfared, head of consumer card products, said in a statement. “Whether they prefer to maximize rewards in a specific spending category or earn a flat rate on all purchases, our cash rewards cards provide value to stretch their dollars further.”
Welcome Bonus Offered
In addition to the enhanced cash back, customers opening a Customized Cash Rewards card or a Unlimited Cash Rewards card will also receive a $200 welcome bonus after spending $1,000 or more on purchases in the first 90 days after the card is opened, according to BofA.
New cardholders are being offered:
- Double Cash Back in the First Year. BofA said Cardholders earn 6% cash back for the first year from account opening in the category of their choice: gas & EV charging stations; online shopping (including cable, internet, phone plans and streaming); dining; travel; drug stores; home improvement and furnishings, 2% at grocery stores and wholesale clubs, and 1% on all other purchases.
- After the first-year bonus offer ends, cardholders will earn 3% cash back on purchases in their category of choice.
- Cardholders earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, cardholders will earn 3% and 2% cash back on these purchases up to the quarterly maximum – and cash rewards don’t expire as long as the account remains open.
The category of choice can be switched once per month.
Unlimited Cash Rewards Offer Details
New cardholders are being offered:
- Unlimited 2% Cash Back in the First Year: Earn unlimited 2% cash back on all purchases for the first year from account opening.
- After the first-year bonus offer ends, cardholders will earn an unlimited 1.5% on all purchases.
- No limit on cash back earned and no expiration on rewards as long as the account remains open.