Bank of America improves on its cash rewards credit card

Portion of credit card

Bank of America's revised BankAmericard Cash Rewards credit card has a new and somewhat improved cash-back structure.

Card members can earn 3% back on gas, 2% on groceries and 1% on everything else. The bonus cash-back limit on the gas and groceries is $1,500 per quarter; purchases above that get the 1% tag.

Compare this to the previous version of the credit card, which offered 3% back on gas, grocery and drugstore purchases -- but just for the first six months. From that point forward, you earned 1% on everything.

Another change: The card also awards a customer bonus of 10% on cash-back bonuses put into a Bank of America checking or savings account.

New customers who sign up for the card and spend $100 within the first 60 days of their opening an account will get $50 in bonus cash rewards.

As more cash-back card issuers have done away with the time limits, BofA has gotten the message.

Unfortunately, it did away with the nice 25% cash-back bonus that was added when you allowed your rebate to grow and claimed $300 or more in a redemption.

New applicants eligible for a credit limit of $5,000 or more will receive a Visa Signature card, while less-qualified applicants will get a regular Visa card.

This card comes with 0% introductory annual percentage rate on purchases for the first year. After that, you'll pay a variable APR of 12.99% to 20.99% (that's the prime rate of 3.25% plus 9.74% to 17.74%) based on your creditworthiness.

There is no annual fee.

If you’re a small-business owner, BofA has revamped its cash rewards program for you, too.

Its Cash Rewards for Business MasterCard rewards cardholders with 3% cash back on purchases of gas, office supplies and computer network services; 2% on restaurant meals, and 1% on everything else.

There’s no cap on earning rewards in any of the categories.

The Cash Rewards card is aiming to compete with America Express’s popular Blue Cash Everyday card that offers the 3%, 2% and 1% cash-back rewards on the same categories.

But BofA is turning it up a notch with the 10% bonus for cash redeemed into BofA customer accounts.

Now that Bank of America has upped its game, it does offer a competitive cash-back rewards offering.

Is it worth signing up for if you’re not a current customer?

It depends on your overall feelings about the banking behemoth. But if you do currently bank there, it’s well worth looking into for making BofA put some extra money into your account instead of taking it out.

Be sure to compare this deal with other credit card offers in our extensive database.

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