Bank Of America^® Premium Rewards^® Credit Card Review [2024]: Is It Worth It?

Card basics

Who should get the Bank of America Premium Rewards credit card?

The Bank of America Premium Rewards credit card may offer an ideal solution for anyone who needs a mid-tier travel credit card and prefers a lower annual fee.

You want to build up travel rewards

As a travel credit card, the Bank of America Premium Rewards credit card is best suited for individuals who want to earn travel rewards towards future travel. Cardholders earn 2X points on travel and dining purchases. It doesn’t stop there, though — you earn 1.5X points on all other purchases.

When you’re ready for point redemption, you can redeem for cash back deposited into your Bank of America checking or savings account, as a statement credit on your credit card or gift card, or travel purchases through the Bank of America Travel Center.

While these redemption options offer nice flexibility and simplicity, your points are worth $.01 each no matter which redemption option you choose, which means there's no chance to get more value for your points. With other travel cards, you have the option to redeem your points for more when using them toward travel or transferring them to airline or hotel partners, which is a trade-off worth considering.

You’re looking for travel benefits

The Bank of America Premium Rewards also outperforms some of its competitors by offering benefits such as TSA PreCheck or Global Entry fee reimbursement and up to $100 in annual airline incidental credits, which you can use toward checked bags or access to airline-owned airport lounges. This card doesn’t charge a foreign transaction fee, either, which can offer significant savings if you travel outside the country.

These credits not only offer you a potentially valuable travel benefit, but it helps offset the $95 annual fee almost right away. If you’re a frequent traveler like I am, having TSA PreCheck or Global Entry offers the gift of time and less hassle at the security checkpoint when you’re traveling in busy airports.

You’re a Bank of America Preferred Rewards member

Other competition lacks one of this card’s most valuable benefits: boosted bonus rewards through the Preferred Rewards program. If you’re a Bank of America Preferred Rewards member, then this could equate to 25% to 75% more points on top of the card’s existing earning potential. Depending on your current Bank of America qualifying account balance, a boosted bonus of up to 75% can make a solid impact.

What does a boost look like? It means that as of this writing, you could earn 2.5 to 3.5 points on travel and dining purchases and 1.87 to 2.62 points on all other purchases instead of the typical rewards.

Who should choose a different card?

While the Bank of America Premium Rewards card offers plenty of value, it may not work for everyone. Keep this in mind if you’re looking for a travel rewards card:

If you need an introductory APR offer

If your main goal is spreading out the payments of a looming large purchase or tackling high-interest credit card debt with a 0% introductory APR on purchases or balance transfers, then this card won’t help you there.

If you’re looking for a travel rewards card that also offers a 0% introductory APR on purchases, balance transfers, or both, you may consider a card like the Capital One VentureOne Rewards Credit Card.

It offers 1.25 miles per dollar on every purchase, every day and 5 miles per dollar on hotels and rental cars booked through Capital One Travel, plus a 0% intro APR for 15 months on purchases (then 19.99% - 29.99% (Variable)) and 0% intro APR for 15 months for balance transfers, then 19.99% - 29.99% (Variable) APR (Balance transfer fee applies).

You can’t take advantage of the travel benefits

If your travel plans don’t include flying very often, then it might not justify the $0 annual fee for you.

The card includes zero foreign transaction fees on purchases when traveling out of the country, up to $100 in annual airline incidental credits, and statement credits for TSA PreCheck or Global Entry.

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 travel card competitors. Currently, your options are direct deposit into a qualifying Bank of America account, statement credit, credit to eligible Merrill^(R) accounts, or gift card or travel purchases through the Bank of America Travel Center.

The card also lacks a travel partner network, which means you can’t transfer any of the points you earn to another travel program, such as an airline or hotel program. If you have a specific travel partner you like, then you may find you can’t maximize your redemption opportunities with other partners.

A great example of how this could look is with the Chase Sapphire Preferred^® Card card, It offers the same annual fee but gives cardholders over a dozen travel partners options for converting points.

Here’s a closer look at the Bank of America Premium Rewards benefits and perks

• Worthwhile welcome offer: Earn 60,000 online bonus points (a $600 value) after you make at least $4,000 in purchases in the first 90 days of account opening.
• Bonus earning: 2 points per $1 on travel and dining purchases and 1.5 points per $1 on all other purchases.
• $100 airline incidental statement credit: Cardholders receive up to $100 in annual statement credits for qualifying airline incidental purchases, such as seat upgrades, baggage fees, and more.
• TSA PreCheck or Global Entry. You can receive up to $100 in TSA PreCheck or Global Entry application fee credits every four years.
• Preferred Rewards program. Receive between a 25% to 75% rewards bonus on your purchases as a Bank of America Preferred Rewards member. To qualify for this program, you need at least a $20,000 three-month combined average daily balance between eligible Bank of America and Merrill accounts (including eligible 529 accounts).
• No foreign transaction fees. This card does not charge foreign transaction fees, so you don’t have to worry about this extra charge when making purchases abroad.
• Travel insurance. The Bank of America Premium Rewards offers several travel protections, including trip delay reimbursement, trip cancellation and interruption coverage, baggage delay protection, and lost luggage reimbursement.
• Purchase protections. This card offers three types of protection for items you buy. This includes purchase and return protections as well as extended warranty coverage.
• Car rental protection. You can get a number of Bank of America credit card benefits for rental car insurance, including access to a secondary auto rental collision damage waiver.

Drawbacks worth considering

• Annual fee: There’s a $95 annual fee attached to this card, which immediately cuts into the card’s value. However, the card’s earning potential and benefits could more than offset this fee in certain situations.
• No transfer partners: Many travel rewards credit cards earn rewards that can be transferred to travel partners, such as airline or hotel loyalty programs. This card doesn’t offer that option, which can be a significant drawback for some travelers. For other options with this feature, check out our list of the best travel credit cards.
• Preferred Rewards threshold: You need at least a $20,000 combined balance to qualify for the Preferred Rewards program and the opportunity to earn bonus rewards on your purchases. To achieve the 75% rewards boost, you need at least a $100,000 combined balance in the Platinum Honors tier. Not everyone will qualify for these benefits, which could make other options more appealing. For alternatives, check out our list of the best rewards credit cards.

Earning and redeeming points

Potential earnings in years one and two

Here's a look at how your points can add up with the Bank of America Premium Rewards credit card. To calculate these values, we used a point valuation of 1 cent per point.

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

Potential year one earnings: $1,311

Potential year two earnings: $711

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

Keep in mind your earnings could significantly increase with the bonus rewards available through the Preferred Rewards program.

Best ways to earn

If you compare credit cards, you’ll find most rewards cards offer different earning rates in multiple bonus categories. For the Bank of America Premium Rewards Card, you can earn 2 points per $1 on travel and dining purchases and 1.5 points per $1 on all other purchases. To help maximize your earning potential, use your card as much as possible on purchases you already plan on making, especially for all travel and dining purchases.

To improve your earning potential even more, consider becoming a Preferred Rewards member. This can boost your rewards by 25% to 75% on every purchase, which can quickly add to your points total. To qualify for this program, you need at least $20,000 in combined eligible Bank of America and Merrill accounts.

Maximizing your redemptions

The points you can earn with the Bank of America Premium Rewards credit card don’t typically vary in value. If you earn 5,000 points, that’s $50 worth of rewards no matter which redemption option you choose, from cash back to award travel.

Here are your available redemption options:

• Statement credits
• Deposits into a Bank of America checking or savings account
• Credit to a qualifying cash management account or 529 account with Merrill
• Gift card or travel purchases through the Bank of America Travel Center

FAQs

Other cards to consider

The Bank of America Premium Rewards credit card could make sense in some situations, but it won’t be the perfect fit for everyone. If it doesn’t seem right for you, here are two other options to consider.

Chase Sapphire Preferred^® Card

The Chase Sapphire Preferred® Card is a similar mid-tier travel credit card that earns travel rewards (in the form of Chase Ultimate Rewards points) and has a $95 annual fee. But its travel benefits are some of the best available. 

Your points are automatically worth 25% more when redeemed for travel in the Chase Travel℠ portal, and they can be transferred to more than a dozen transfer partners. In addition, you receive a $50 hotel credit each year and an annual 10% anniversary bonus for purchases made the previous year.

While it offers many advantages, the Chase Sapphire Preferred doesn’t offer the TSA PreCheck or Global Entry application credit as the Premium Rewards card does.

For more information, check out our Chase Sapphire Preferred review.

Capital One Savor Cash Rewards Credit Card

The Capital One Savor Cash Rewards Credit Card also has a $95 annual fee, but it’s focused on earning cash back rather than travel rewards. 

Its earning rates — 10% cash back on purchases made through Uber & Uber Eats (through 11/14/2024); 8% cash back on Capital One Entertainment; 4% cash back on dining, entertainment, and select streaming services; 3% at grocery stores (excluding superstores such as Walmart® and Target®), and 1% cash back on all other purchases — are likely to be more useful for everyday purchases than what the Bank of America Premium Rewards offers.

For more information, check out our Capital One Savor Cash Rewards Credit Card review.

Bottom line

If you often travel, want to earn travel rewards, and enjoy valuable travel benefits, then the Bank of America Premium Rewards credit card is a worthy addition to your wallet – especially if you’re a Bank of America Preferred Rewards member.

This travel credit card has a $95 annual fee, enables you to earn a generous welcome offer, and gives you access to TSA PreCheck® or Global Entry fee reimbursement.

However, it lacks the option to transfer rewards to travel partners. Explore the best credit cards for travel to find more options, some of which offer reward transfers.

Generous Welcome Bonus

Bank of America^® Premium 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^® Premium Rewards^® credit card

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Annual Fee

$95

Benefits and Drawbacks

Benefits

• Earn 2X points for every dollar spent on on travel and dining
• Strong welcome offer
• Statement credits for TSA PreCheck® or Global Entry
• No foreign transaction fees

Drawbacks

• Charges a $95 annual fee
• No 0% introductory APR offer for purchases or balance transfers
• Includes a slightly higher ongoing APR compared to other travel credit cards
• Limited redemption options

Card Details

• Low $95 annual fee.
• Receive 60,000 online bonus points - a $600 value - after you make at least $4,000 in purchases in the first 90 days of account opening.
• Earn unlimited 2 points for every $1 spent on travel and dining purchases and unlimited 1.5 points for every $1 spent on all other purchases. No limit to the points you can earn and your points don't expire as long as your account remains open.
• If you're a Bank of America Preferred Rewards® member, you can earn 25%-75% more points on every purchase. That means you could earn 2.5-3.5 points on travel and dining purchases and 1.87 - 2.62 points on all other purchases, for every $1 you spend.
• Redeem for cash back as a statement credit, deposit into eligible Bank of America® accounts, credit to eligible Merrill® accounts, or gift cards or purchases at the Bank of America Travel Center.
• Get up to $100 in Airline Incidental Statement Credits annually and TSA PreCheck®/Global Entry Statement Credits of up to $100, every four years.
• Travel Insurance protections to assist with trip delays, cancellations and interruptions, baggage delays and lost luggage.
• No foreign transaction fees.
• 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.