BofA Reducing CC Bonus Cash Rewards for some Preferred Customers

[audreyh1]

A nice perk for keeping certain levels of funds at BofA/Merrill Lynch has been a boost to the BofA credit cards cash rewards. 10% extra for having an account, 25% extra for $20K across all accounts including Merrill Lynch “Gold”, 50% extra bonus for $50K “Platinum” and 75% bonus for both the $100K “Platinum Honors” and $1M “Diamond Honors”. So these end up being very heavy boosts in cash back CC rewards.

Unfortunately starting around May 26 2026 BofA is introducing their new BofA Rewards program which introduces new tier names and reduces the bonus on 2 of these credit card reward tiers. This may not go into effect immediately as BofA reviews your Preferred Customer Status each year over an 3 month period. They are keeping the Preferred Customer levels listed above for other banking privileges and fee waivers, but for CC bonuses it is now a new set of tiers with new names and 10% for under $30K, $30K for 25%, $100K for 50% and $1M for 75%.

I got an email about their new program yesterday. Existing preferred customers will automatically be enrolled. According to NerdWallet linked below I will retain my current 50% bonus until some time after December when it will drop to 25%. Someone who has been enjoying the 75% rewards bonus at $100K will drop to 50% unless they have over $1M across all accounts.

More info: https://www.nerdwallet.com/credit-cards/news/bank-of-america-unveils-updated-loyalty-program

 

[COcheesehead]

I heard on another forum rumors, though not confirmed, that Fidelity was dropping from 3% cash rewards back to 2% for people who have managed accounts. 2% is the norm for everyone.
I don’t have a managed account so cannot confirm.

 

[Dtail]

Kind of sucks, as I make use of these rewards extensively. With the added CC fees being charged by some merchants, this whole CC reward business is getting less appealing.

 

[RetiredHappy]

I had the 75% bump when ML managed our accounts. I had dropped to keeping the accounts above $50K for the past couple of years. It makes it easy now for me to simply keep the total of all accounts to just above $30K.

I probably won't even find much reason to use the BOA cc anymore. My annual credit card summary statements showed that I put above $100K each year for the past few years since I started looking at the summary for tax purposes (itemized deduction for medical charges details).

Restaurant and travel charges will probably now go on the Costco Citi credit card since it gets 3%. We don't have the Fidelity cc because we just don't want to have yet another credit card. I will probably put non-restaurant and travel charges on BOA or my Amex Bonvoy and Marriott Bonvoy cards, as they are kind of a wash, I will have to think about it. I get free hotel stays with the Bonvoy cards/points.

 

[audreyh1]

Kind of sucks, as I make use of these rewards extensively. With the added CC fees being charged by some merchants, this whole CC reward business is getting less appealing.

50% rewards bonus is still pretty generous compared to most CCs. I know that on our customized cash rewards CC we have been enjoying 4.5% cash rewards for online shopping category (3% normally). Also 2.25% for the normally 1.5% travel rewards card.

Of course it’s dropping for us because we’re at the $50K level which has been eliminated. Hopefully it does not affect us until early next year. I am also likely to drop back to $30K which means letting one CD mature and moving those funds. But I need to review the other bank benefits that come with the $50K Preferred Customer level.

We already put travel, lodging, EV charging and dining on the Costco Citi Visa. 3% cash back rewards (4% EV charging). Annual redemption.

 

[Dtail]

50% rewards bonus is still pretty generous compared to most CCs. I know that on our customized cash rewards CC we have been enjoying 4.5% cash rewards for online shopping category (3% normally). Also 2.25% for the normally 1.5% travel rewards card.

Of course it’s dropping for us because we’re at the $50K level which has been eliminated. Hopefully it does not affect us until early next year.

We already put travel, lodging, EV charging and dining on the Costco Citi Visa. 3% cash back rewards. Annual redemption.

I am at the 100k level. So have 3 rewards cards, one premier card and one travel card. I average about $4,300 yearly in rewards. I use it related to 4 people.
I currently get 5.25% on the rewards cards up to 2,500 quarterly on select categories and max out each card, so will probably not change anything right now.
Edit - So my new rates would be 4.50% (Rewards) and 2.25% (Premier), so still better than a typical all in 2% card.

 

[audreyh1]

I am at the 100k level. So have 3 rewards cards, one premier card and one travel card. I average about $4,300 yearly in rewards. I use it related to 4 people.
I currently get 5.25% on the rewards cards up to 2,500 quarterly on select categories and max out each card, so will probably not change anything right now.
Edit - So my new rates would be 4.50% (Rewards) and 2.25% (Premier), so still better than a typical all in 2% card.

Exactly, still generally better rewards.

I’m just not willing to iincrease up to $100K at this time. I have several rewards cards. 2% Fidelity Visa will beat the lower 1.875% BofA travel rewards CC after my bonus drops, but they are very close and the latter handles online international transactions from the US very well so I use it for booking train and venue tickets etc. online ahead of international travel. Any lodging or cruise/tour reservations etc. go on Costco Visa.

 

[Drake3287]

Sorry to hear about this, I've been a BofA Platinum Honors member for years earning thousands each year in cash rewards. Looks like I'll be losing 25% of the bonus unless I can hit that million dollar mark. I knew this free money was too good to be true, like most people I'll look around for better cash reward programs but I'm not sure there are any.

 

[Sunset]

I make use of 4 BOA CC's and the preferred status, so this is disappointing news.

A good reward CC I use only for groceries is the Citi Custom Cash, as it gives 5% back purchases up to $500 each billing cycle, and for the two of us, we spend a little less than $500 each month on groceries at regular grocery stores.

I use a BOA CC at Costco to get 3.5% back and some of our groceries come from there. Just didn't want anyone to think we are starving

 

[Koolau]

I really resent needing to play their silly little CC game. I mostly just use my Costco Citi card. I'm sure I miss some bonuses and top rewards but I get consistent and adequate rewards from the card.

 

[audreyh1]

I got a corrected email from BofA that indicated I will be getting my current reward level until after December before being cut in half. There is a three month preferred eligibility period so I think that means Dec-Feb for me. So a year still.

The previous email implied my CC bonuses would be cut in half starting late May. Thank goodness NerdWallet was right.

 

[Dtail]

I got a corrected email from BofA that indicated I will be getting my current reward level until after December before being cut in half. There is a three month preferred eligibility period so I think that means Dec-Feb for me. So a year still.

The previous email implied my CC bonuses would be cut in half starting late May. Thank goodness NerdWallet was right.

Just received the same email. Of course there is a positive spin on it, not the emphasis on the reduction of rewards percentages.

 

[RetiredHappy]

I just went back and looked at my 2025 preferred rewards cash. I banked $2,900 in cash rewards last year. 9 months more and we will switch to Costco Citi and a yet to be applied Fidelity CC.

 

[audreyh1]

Just received the same email. Of course there is a positive spin on it, not the emphasis on the reduction of rewards percentages.

Oh yeah, for sure! I carefully read the initial email about the great new BofA Rewards program and quickly figured out my benefits were going to drop.

 

[Dtail]

I just went back and looked at my 2025 preferred rewards cash. I banked $2,900 in cash rewards last year. 9 months more and we will switch to Costco Citi and a yet to be applied Fidelity CC.

BOA is still a better deal for me than Citi or Fido, but unfortunately less than it used to be.

 

[RetiredHappy]

BOA is still a better deal for me than Citi or Fido, but unfortunately less than it used to be.

I just received the email and it stated that I will continue to earn my current level of bonus until April 2027.

 

[Dtail]

I just received the email and it stated that I will continue to earn my current level of bonus until April 2027.

That is pretty good. Mine is only to Dec 2026. Good timing on your anniversary. lol

 

[audreyh1]

I just received the email and it stated that I will continue to earn my current level of bonus until April 2027.

It may be after June of 2027 because they take 3 months to determine your Preferred Customer eligibility.

 

[RetiredHappy]

It may be after June of 2027 because they take 3 months to determine your Preferred Customer eligibility.

It will give me time to wait for another Fidelity cc offer. We have resisted getting yet another card, but we will likely do it, just for everyday purchases.

 

[TrvlBug]

I heard on another forum rumors, though not confirmed, that Fidelity was dropping from 3% cash rewards back to 2% for people who have managed accounts. 2% is the norm for everyone.
I don’t have a managed account so cannot confirm.

I called them as we have a managed account and get the 3% cash back. The rep stated we were grandfathered. I didn't probe further but assume that for new managed account clients, it will be 2%.

 

[DEC-1982]

Thanks for posting this link Audrey.

I am quite comfortable with these changes, because I use BOA mostly for paying bills, ATM etc. It's a different story for those who are using Merrill Lynch and other BOA facilities.

$20,000 (stored elsewhere) at 3.5% a year generates $700 annually.

 

[audreyh1]

Thanks for posting this link Audrey.

I am quite comfortable with these changes, because I use BOA mostly for paying bills, ATM etc. It's a different story for those who are using Merrill Lynch and other BOA facilities.

$20,000 (stored elsewhere) at 3.5% a year generates $700 annually.

I have a BofA CD paying 3.75% on over $30K so we’re not missing out either.