The Bank of America Premium Rewards is the bank's flagship mid-tier travel card — and for existing Bank of America or Merrill Lynch customers who qualify for Preferred Rewards status, it becomes one of the most rewarding cards in its class. At base level, 2x on travel and dining plus 1.5x on everything else is competitive for a $95 annual fee. With Platinum Honors status ($100K+ in BofA/Merrill balances), the earn rates jump to 3.5x on travel/dining and 2.625x everywhere — rivaling cards that cost $300–$500/year. The $100 annual airline incidental credit alone offsets the fee.
Earning Structure
| Category | Base Rate | Gold (+25%) | Platinum Honors (+75%) |
|---|---|---|---|
| Travel + Dining (unlimited) | 2x pts | 2.5x pts | 3.5x pts |
| All Other Purchases (unlimited) | 1.5x pts | 1.875x pts | 2.625x pts |
Points are always worth 1¢ each regardless of redemption method — cash back, statement credit, BofA/Merrill deposit, or travel through the BofA Travel Center. There are no transfer partners and no way to get outsized value above 1¢/pt. For cardholders who want simplicity and guaranteed value, this is a feature; for points optimizers seeking premium redemptions, it's a meaningful limitation.
The Preferred Rewards Boost — The Card's Core Value Proposition
Bank of America's Preferred Rewards program boosts credit card earn rates based on combined three-month average daily balances across Bank of America deposit accounts and Merrill investment accounts:
| Tier | Required Balance | Rewards Boost | Travel/Dining Rate | All Other Rate |
|---|---|---|---|---|
| Base (no tier) | None | — | 2x | 1.5x |
| Gold | $20,000+ | +25% | 2.5x | 1.875x |
| Platinum | $50,000+ | +50% | 3x | 2.25x |
| Platinum Honors | $100,000+ | +75% | 3.5x | 2.625x |
Merrill IRAs and 401(k)s Count Toward Preferred Rewards
Retirement accounts at Merrill Lynch — including IRAs, 401(k)s, and other investment accounts — count toward your Preferred Rewards qualifying balance. A household with $80,000 in a Merrill IRA plus a $25,000 BofA checking account qualifies for Platinum Honors status, unlocking the 3.5x travel/dining earn rate on a $95/yr card.
Annual Credits That Offset the Fee
- $100 airline incidental credit — automatic statement credit each calendar year for airline incidental purchases: checked bags, seat upgrades, inflight food/drinks, airline lounge day passes, and similar charges. Applies to all airlines (not restricted to one like some premium cards). Effectively makes the card $0 net cost for anyone who checks a bag or upgrades a seat once per year.
- $100 Global Entry / TSA PreCheck credit — statement credit every 4 years for the application fee for either program. Amortized: $25/year.
No Transfer Partners — The Key Limitation
BofA points cannot be transferred to any airline or hotel loyalty program. All points redeem at exactly 1¢ each. This is the card's most significant structural disadvantage versus Chase Sapphire Preferred (14 transfer partners), Citi Strata Premier (22 partners), or Capital One Venture (15+ partners) — all at the same $95 annual fee. If maximizing travel value through award bookings matters to you, those cards deliver meaningfully higher return per point for travelers willing to optimize.
Pros & Cons
What We Like
- $100 annual airline incidental credit covers the fee — net cost $0 for most travelers
- Preferred Rewards boosts earn rates to 3.5x/2.625x at Platinum Honors — class-leading
- Merrill IRAs/401(k)s count toward qualifying balance
- 60,000-point welcome bonus ($600 value) after $4,000/90 days
- No foreign transaction fee
- Broad travel + dining definitions — rideshares, parking, tourist attractions, bars all qualify
What to Watch Out For
- No transfer partners — points always worth exactly 1¢ (no premium redemption potential)
- Base earn rates (2x/1.5x) trail competing $95 cards without Preferred Rewards status
- $20,000+ minimum balance required for any Preferred Rewards boost
- No lounge access at any tier
- 2,500-point minimum redemption for travel/cash back
Bank of America Premium Rewards® Credit Card
2x travel + dining · $100 airline credit · 60K bonus · Preferred Rewards boost up to 3.5x · $95/yr
Apply Now →Bottom Line
The Bank of America Premium Rewards is an excellent card specifically for BofA/Merrill customers who hold $20,000+ in qualifying balances. The Preferred Rewards boost transforms it into one of the most rewarding mid-tier cards at any price — at Platinum Honors, 3.5x on travel/dining at $95/yr beats most $300+ premium cards on earn rates alone. Without Preferred Rewards status, the 2x/1.5x rates are decent but uncompetitive versus Chase Sapphire Preferred or Citi Strata Premier, both of which offer transfer partner access at the same $95 fee. The decision is binary: if you're already in the BofA/Merrill ecosystem, this card is exceptional; if you're not, you're better served by a card with transfer partners.