The Bank of America Customized Cash Rewards is the most flexible cash back card in the BofA lineup — and one of the most interesting no-fee cash back cards in the market. Its choice category lets you select (and change monthly) which spending category earns the elevated rate: gas, online shopping, dining, travel, drugstores, or home improvement. Year one earns an exceptional 6% in your choice category plus 2% at grocery stores and wholesale clubs. After year one, that drops to 3% choice + 2% groceries. With a Preferred Rewards boost, year-one rates can reach 7.5% in your chosen category.
Earning Structure
| Category | Year 1 | Year 2+ | Notes |
|---|---|---|---|
| Choice Category (your pick) | 6% ✓ | 3% | Up to $2,500/quarter combined with grocery, then 1% |
| Grocery Stores + Wholesale Clubs | 2% | 2% | Up to $2,500/quarter combined with choice, then 1% |
| All Other Purchases | 1% | 1% | Unlimited |
The $2,500 quarterly cap applies to combined spending in the choice category AND grocery/wholesale club combined — not separately. A quarter with $1,500 in grocery spending and $800 in your choice category = $2,300 in the capped tier. $200 more before hitting the cap. This matters for households who shop heavily at grocery stores.
The 6 Choice Categories
You can change your choice category once per calendar month through the BofA mobile app or online banking. If you don't change it, it stays the same. Default category is gas. Your 6 options:
| Category | What Qualifies | Best For |
|---|---|---|
| Gas + EV Charging | Gas stations, EV charging networks | Commuters, road-trippers, EV drivers |
| Online Shopping | Amazon, Walmart.com, eBay, most e-commerce | Frequent online shoppers |
| Dining | Restaurants, fast food, food delivery | Dining-heavy households |
| Travel | Flights, hotels, rental cars, rideshare | Occasional travelers |
| Drug Stores / Pharmacies | CVS, Walgreens, Rite Aid, Duane Reade | Households with high prescription costs |
| Home Improvement | Home Depot, Lowe's, hardware stores | Homeowners, renovators |
Best Strategy: Change Category Monthly to Match Your Spending
Because you can change your choice category once per month, you can align it to planned large purchases. Road trip planned? Switch to gas. Holiday shopping season? Switch to online shopping. Home renovation starting? Switch to home improvement. This flexibility makes the card significantly more valuable than a fixed-category card, especially for households with variable monthly spending patterns.
The $2,500 Quarterly Cap — Who It Limits
The cap applies to combined choice category + grocery/wholesale club spending per quarter. At $2,500/quarter combined, that's $10,000/year in capped spending. For households spending $200–$400/month in their choice category plus $300–$500/month on groceries, the cap may hit mid-quarter in busier months. After the cap: all bonus category spending drops to 1% for the rest of that quarter. Plan accordingly — if you're approaching the cap, consider switching your choice category to something where you'll spend less for the remainder of the quarter.
Preferred Rewards Boost
The Preferred Rewards boost applies to the ongoing earn rates (year 2+ rates of 3%/2%/1%) but not to the year-one 6% bonus. At Platinum Honors (+75%), the standard rates become: 5.25% choice category / 3.5% grocery / 1.75% everywhere else. These are excellent rates for a no-fee card with qualifying BofA/Merrill balances.
Pros & Cons
What We Like
- 6% in choice category year one — highest available on a no-fee card
- Changeable monthly — align category to planned large purchases
- 2% at grocery stores and wholesale clubs (including Costco)
- $200 welcome bonus after $1,000/90 days
- 0% APR 15 billing cycles — useful for first year
- No annual fee
What to Watch Out For
- Year-one 6% rate drops to 3% after 12 months
- $2,500 quarterly cap on combined choice + grocery spending
- 1% on all purchases outside the two bonus tiers
- 3% foreign transaction fee — don't use internationally
- Requires active management to get maximum value (monthly category changes)
Bank of America® Customized Cash Rewards Credit Card
6% yr 1 → 3% yr 2+ in choice category · 2% grocery/wholesale · $200 bonus · $0/yr
Apply Now →Bottom Line
The Bank of America Customized Cash Rewards is one of the most versatile no-fee cash back cards available. The choice category system — especially with monthly changes — lets you direct your elevated earning wherever your spending happens to be that month, which is more flexible than any fixed-category card. The year-one 6% rate is exceptional. After year one, 3% in a choice category plus 2% on groceries is still solid at no annual fee. The $2,500 quarterly cap is the main limitation for heavy spenders. This card is the best default recommendation in the BofA lineup for most cardholders who don't have meaningful Preferred Rewards balances.