Several years ago, when I tried to open my first credit card, only Bank of America accepted my application. At the time I had absolutely no credit. My only option was to open the BankAmericard for Students. The card is intended to help students with limited credit history build credit. Additionally, a low APR to help protect students from falling into spiraling debt with their first credit card. At the time my credit limit was just $500 and I used the card like a debit card. I’d use the card a few times a week and then pay off my balance in full twice a month.
After several months of establishing credit, Bank of America sent me an exciting offer (their words, not mine). The offer was to convert my BankAmericard for Students to the BankAmericard Cash Rewards card. I accepted the offer and I’ve had the Cash Rewards card ever since. Even though I’ve had the card for a few years now I’ve never paid any attention to the card’s benefits. I became so wrapped up in the American Express Premier Rewards Gold card and other premium cards that I didn’t see any value in a no-annual fee cash rewards card. Sadly, that was a mistake since the BankAmericard Cash Rewards card comes with valuable benefits, especially for a no annual fee card.
BankAmericard Cash Rewards Benefits Overview
At face value the BankAmericard Cash Rewards card is a simple cash back credit card. The card offers 1% cash back on every purchase. Additionally, card holders earn 2% cash back on purchases at grocery stores/wholesale clubs as well as 3% cash back at gas stations. Card holders only earn bonus cash back on the first $2,500 spent each quarter. If you spend $2,500 at grocery stores or wholesale clubs first, you won’t earn any bonus cash back at gas stations. Likewise, if you spend all $2,500 at gas stations, you won’t earn bonus cash at grocery stores.
If this all seems a little bit confusing you’re in luck. Bank of America offers a handy calculator to help you understand how much cash back you’ll earn each quarter. You can access the Cash Back Calculator here.
On top of the cash back, the card also comes with a few other benefits. Additional benefits include:
- No annual fee
- Low APR (0% for the first 12 billing cycles) up to 23.99% after that
- Current Bonus Offer: $150 cash back after spending $500 in the first 90 days
- Eligible for Bank of America Relationship Bonuses
Those benefits aren’t the most spectacular offered from card issuers, but keep in mind this is a no annual fee credit card. Not to mention, Bank of America is essentially paying you $150 to open the card.
Bank of America Relationship Bonuses
Bank of America sweetens these benefits for existing customers. Existing customers receive a 10% cash back bonus when sending cash back to a qualifying checking account. That bonus increases with based on each customers combined Bank of America account balances. Customers with $20,000 in total Bank of America balances (Checking, Saving, and Investment Accounts) earn a 25% bonus. Customers with balances greater than $50,000 earn a 50% bonus. Lastly, customers with $100,000 in combined account balances receive a 75% cash back bonus. Fee free to click here for more information about Bank of America banking relationship bonuses.
Essentially, if you’re a top-tier Bank of America customer ($100,000+ in combined accounts) and max out the quarterly gas station bonus, this simple no annual fee cash back card turns into a 5.25% cash back machine! In total, you’d earn $131.25 of cash back each quarter per $2,500 spent on gas.
Sadly, if you only use this card for non-bonus spending you’ll only earn a maximum of 1.75% at which point this card no longer makes sense to carry.
Final Thoughts
There’s no denying that there are better all around cash back credit cards on the market today. For example, the Chase Freedom card offers 5% cash back on $1,500 each quarter (rotating categories) and the Citi Double Cash card offers 2% cash back on ALL purchases. That being said, the BankAmericard Cash Rewards card is a great cash back card for anyone who spends up to $2,500 at gas stations each quarter. The card is even better for existing Bank of America customers thanks to the relationship bonuses.
All in all, the BankAmericard Cash Rewards card definitely isn’t the best credit card for everyone. The card really only makes sense if you’re able to max out the $2,500 quarterly spend between the two bonus categories. It’s also a great card for anyone looking to maximize purchases at the pump. I can’t think of any other, no annual fee, credit card that earns 3% cash back (or 3X points) on gas station purchases. If you’re looking for a credit card that earns a bonus on gas station purchases and don’t want to pay an annual fee, the BankAmericard Cash Rewards card is perfect for you. If you’re looking for a simple 2%+ cash back credit card, you probably should keep looking!
Either way, this card is in my wallet and will be for a long time. It’s currently the oldest account I maintain and closing the account will be detrimental to my credit score. I don’t use the card that often, but I’ll definitely start bringing it on road trips to pay for gas or snacks along the way.
