Bank Of America^® Customized Cash Rewards Credit Card Review [2024]: Extra Effort Can Get You the Most Value

Key takeaways

• You can truly customize earnings. With the Bank of America® Customized Cash Rewards credit card, you can earn 3% cash back in the category of your choice and 2% cash back at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and 1% on all other purchases.
• It’s cost-effective. The Bank of America Customized Cash Rewards Credit Card has a $0 annual fee, making it a low-cost choice for earning cashback rewards.
• It has a competitive introductory offer. New cardholders can take advantage of introductory annual percentage rates (APRs) on purchases and qualifying balance transfers.
• It provides flexibility. You can select your own 3% cashback category in the category of your choice — gas and EV charging stations, online shopping, dining, travel, drug store/pharmacy or home improvement/furnishings (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter). This flexibility enables you to earn rewards based on your specific spending habits.
  
• Multiple redemption options. Cash back can be redeemed as a statement credit, check, or deposit to an eligible Bank of America or Merrill account.

Card basics

Who should get the Bank of America Customized Cash Rewards credit card?

Before you select any cash-back credit card, the most important exercise is analyzing what categories you spend the most in and when you reach for your credit card. When you can match a credit card to your spending habits and needs, you maximize its rewards potential.

You’re trying to control your expenses

The Bank of America Customized Cash Rewards credit card is a good choice for cardholders who want a $0 annual fee while still earning competitive rewards on their everyday purchases.

A $0 annual fee means you don’t have to worry about using the credit card for a certain amount to cover the cost of the card. If you’re like me and painfully watching your spending, then you will appreciate not having the annual fee show up on your statement.

Your spending fluctuates throughout the year

If you’re someone whose spending fluctuates throughout the year, such as with holiday spending, surprise educational or sports expenses, or life in general, then you may get the most out of having the option of selecting from the maximized spending categories.

Since you’re able to select your own 3% cashback category in the category of your choice — gas and EV charging stations, online shopping, dining, travel, drug store/pharmacy or home improvement/furnishings (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter) — it’s easy to earn rewards based on how you actually spend. 

 You can also change this category as often as once per billing cycle, so you can earn maximum cashback rewards even as your spending habits shift.

You’re looking for an introductory APR offer

Additionally, this card is a good choice for anyone interested in 0% intro APR on purchases, balance transfers, or both.

That’s because the Bank of America Customized Cash Rewards card offers an introductory 0% APR on all purchases made in the first 15 billing cycles of account ownership, then 18.74% - 28.74% Variable APR.

Depending on your circumstances, this may be an optimal time for paying down high-interest credit cards or spreading out a large purchase, such as new tires or new appliances.

You also get a 0% intro APR for 15 billing cycles for any balance transfers made in the first 60 days, and then the interest rate reaches 18.74% - 28.74% Variable APR. This gives you a little over a year to pay down your balance without incurring interest charges.

Who should choose a different card

While the Bank of America Customized Cash Rewards credit card may be loaded with benefits, not everyone should add it to their wallet.

You need a card when traveling out of the country

The Bank of America Customized Cash Rewards credit card isn’t a great option for those who travel outside the country often, as it has a 3% fee on foreign transactions.

Depending on where you go and how much you spend, this could equate to tens or hundreds of dollars in fees.

You like a fix-it-and-forget-it strategy

If you don’t have the time or desire to keep up with the spending levels and caps or have time to select your highest spending category before the next month, then you may want to skip this one.

Although the card defaults to the previous month’s spending category, getting the most value out of this card requires maintenance throughout the year. Additionally, to maximize your earnings from this card, you’ll need to maintain your Bank of America Preferred Rewards status.

You need more redemption options

While the card offers a few convenient redemption options, including bank statements or direct deposit, it’s not as many as you might find with other cash back competitors.

If these redemption choices don’t work well for your card management needs, then you should look elsewhere.

You spend a lot in a certain category

You’re limited to earning bonus rewards on the first $2,500 spent each quarter combined between the 3% and 2% categories.

If you reach this amount for a quarter, every eligible purchase will only earn 1% cash back. Another card may be a better option if you're a big spender in certain categories.

Here's a closer look at the card's top benefits:

• Achievable welcome offer: Currently, this credit card enables you to earn a $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening. I like the simplicity of this offer, with a spending threshold that is considerably lower compared to some other credit cards.
• Earn cash back your way: You’ll automatically earn 2% back at grocery stores and wholesale clubs (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter). The highest-earning category, however, is decided by you. Cardholders earn 3% cash back in the category of your choice — gas and EV charging stations, online shopping, dining, travel, drug store/pharmacy or home improvement/furnishings (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter).
• Change your biggest rewards as needed: Do all of your holiday shopping online in November, but drive cross-country to see family in December? Simply choose online shopping for your 3% category in November and then select gas for the following billing cycle. This way, you can optimize your spending even as it fluctuates.
• Every dollar counts: Even once you reach the spending cap on the 3% and 2% rewards categories, you can still keep earning. Outside of those categories — or even in those categories, beyond the $2,500 quarterly limit — you’ll still earn 1% on everything you spend. While I think the spending cap can limit earnings compared to other cash back cards, the ability to earn something on all purchases is worth noting.
• Boost earnings even higher: Bank of America Preferred Rewards® members can boost their cashback earnings by 25-75%, meaning you could earn as much as 5.25% in your top spending category each billing cycle. You can read more about how you can do this below.
• Introductory APR: New cardholders can take advantage of an introductory 0% APR on purchases for the first 15 billing cycles (then 18.74% - 28.74% Variable APR), as well as a 0% intro APR for 15 billing cycles for any balance transfers made in the first 60 days (then 18.74% - 28.74% Variable APR).
  
• Extended warranty coverage: You can extend the manufacturer's warranty on eligible purchases by up to 12 months. You can receive up to $10,000 per extended warranty claim and up to $50,000 total per year.
• FICO® Score: Opt in for free monthly access to your updated FICO Score.

Earning & redeeming Bank of America Cash Rewards

Potential earnings in years one and two

Here's a look at how your cash back can add up with the Bank of America Customized Cash Rewards credit card.

Remember, this is an estimation. The actual value will be determined by how much you spend and in which categories you spend.

Year one earnings: $705

Year two earnings: $505

These values are based on the FinanceBuzz Credit Card Rewards Valuation Model, which takes a look at points earned via spending and the sign-up bonus.

You could earn additional cash back well beyond this depending on the 3% category you choose each quarter.

Note that the values above don't account for the higher card rates of cash back you can earn as a Bank of America Preferred Rewards® member. If you're a Bank of America Preferred Rewards® member, it's likely you'll get much more value from this card.  

Best ways to earn

The great thing about this card is the flexibility to change your earning potential according to how and when you spend. I don’t know about you, but my own spending fluctuates quite a bit throughout the year. 

I may remodel my kitchen in March, do a ton of back-to-school shopping online in August, and enjoy travel from October through December.

Know your highest spending category

This is why the Bank of America Customized Cash Rewards credit card is so unique. It allows cardholders to “earn cash back your way,” choosing a new 3% category up to once per billing cycle. 

This means you can get the best cash back rewards for holiday shopping, spring remodels, and summer vacation — all with the same card. Plus, you earn 2% at grocery stores and wholesale clubs (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter) all year, and 1% on all other purchases.

Consider joining the Bank of America Preferred Rewards® program

If you’re a Bank of America Preferred Rewards® program member, you can boost your rewards by an additional 25-75%. In order to enroll in this no-fee program, you will need to open a personal checking account with Bank of America. 

Between this account and other eligible Bank of America (or Merrill Lynch) accounts, you will also need to carry a three-month combined average balance of $20,000.

Your Preferred Rewards tier is based on your combined balance between these eligible accounts. The higher your tier, the more your Bank of America Customized Cash Rewards credit card cashback earnings will be.

Maximizing your redemptions

This card isn’t just flexible when it comes to earning. You will also enjoy multiple cashback redemption options, and your cash rewards will never expire as long as your account remains open.

Your cashback redemption options include:

• Redeem for cash rewards in any amount at any time. These can be in the form of a statement credit, deposits into a Bank of America checking or savings account, or credited to an eligible Merrill account.
• Redeem as a contribution into a qualifying Merrill 529 account (minimum redemption of $25).
• Set up automatic redemptions (in increments of $25 or more) into an eligible Bank of America or Merrill account.

FAQs

Here are a few frequently asked questions about this card, in case you’re still wanting to learn a bit more.

Other cards to consider

While the Bank of America Customized Cash Rewards credit card is a good option among Bank of America credit cards — especially for Bank of America customers — it might not be the best choice for your wallet. 

Luckily, there are a number of great credit cards from which you can choose that check similar boxes. 

Chase Freedom Flex^®

The Chase Freedom Flex^® is another $0-annual-fee credit card. New cardmembers can earn a $200 bonus after you spend $500 on purchases in your first 3 months from account opening. 

With this card, you’re also able to make the most out of a variety of spending categories each year, thanks to its 5% total cash back on qualifying Lyft rides; 5% cash back on rotating quarterly categories you activate (on up to $1,500 spent) and travel purchased through Chase Travel℠; 3% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery service); and 1% cash back on all other purchases. 

Read our full Chase Freedom Flex^® review.

U.S. Bank Cash+^® Visa Signature^® Card

Another $0-annual-fee credit card you may want to consider is the U.S. Bank Cash+^® Visa Signature^® Card. With this card's welcome bonus, you can earn a $200 bonus after spending $1,000 in eligible purchases within the first 90 days of account opening, and there is no limit to the rewards you can earn. 

As with the Bank of America card, this card allows you to choose your rewards rate — but not just in one category. You will earn 5% cash back on two categories you choose (up to $2,000 in combined eligible purchases each quarter) and on prepaid air, hotel and car reservations booked directly in the Rewards Center; 2% cash back on one everyday category, like gas stations/EV charging stations, grocery stores, or restaurants; and 1% cash back on all other eligible purchases.

Read our full U.S. Bank Cash+^® Visa Signature^® Card review.

Bank Of America Customized Cash Rewards: bottom line

The Bank of America^® Customized Cash Rewards credit card has a flexible and rewarding cashback program. With the ability to choose your own 3% cashback category and change it as your spending habits shift, you can maximize your earnings based on your actual spending.

After researching recommendations from users of this card, the consensus seems to be you get the biggest benefit from boosting your cashback earnings as a Bank of America Preferred Rewards® member. Depending on your membership tier, you can earn 25% to 75% more value, which is a significant incentive for even modest users

However, the Bank of America Customized Cash Rewards has somewhat limited redemption options, and you’ll face a pesky foreign transaction fee if you use it outside the country. To explore more options, check out our list of the best cash back credit cards.

Choose Your Cashback Category

Bank of America^® Customized Cash Rewards credit card

4.4

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Bank of America^® Customized Cash Rewards credit card

4.4

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Apply Now

Why We Like It

Earn a $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening

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See how these cards compare:

Chase Freedom Flex®

• Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
• Up to 5% cash back on spending
• Perks from Lyft, DoorDash, and more

U.S. Bank Cash+® Visa Signature® Card

• Earn a $200 bonus after spending $1,000 in eligible purchases within the first 90 days of account opening
• No annual fee
• Intro APR on purchases and balance transfers
• Up to 5% cash back on eligible purchases

Choose Your Cashback Category

Bank of America^® Customized Cash Rewards credit card

4.4

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Bank of America^® Customized Cash Rewards credit card

Apply Now

Annual Fee

$0

Benefits and Drawbacks

Benefits

• $0 annual fee
• Enhanced cash back in a popular spending category of your choice
• Long intro APR on purchases and qualifying balance transfers
• You can swap out your highest spending category each month, so you can maximize earnings

Drawbacks

• Quarterly spending caps
• 3% foreign transaction fee
• Must be a Bank of America Preferred Rewards® member for maximized benefits
• Not as many redemption options

Card Details

• $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
• Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
• Choose 3% cash back on gas and EV charging station, online shopping/cable/internet/phone plan/streaming, dining, travel, drug store/pharmacy or home improvement/furnishings purchases.
• If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more cash back on every purchase. That means you could earn 3.75%-5.25% cash back on purchases in your choice category.
• No annual fee and cash rewards don’t expire as long as your account remains open.
• 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 18.74% - 28.74% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 4%.
• Contactless Cards - The security of a chip card, with the convenience of a tap.
• This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.