Rewards bonus

[Anonymous]

First time poster.

I was wondering if Bank of America is the only issuer that gives a relationship bonus on credit card rewards if you have X amount of money with them?

[K-in-Boston]

Citi Prestige has relationship bonuses when you meet certain criteria.  Also, welcome to the board!

[Anonymous]

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@Anonymous wrote:
First time poster.

I was wondering if Bank of America is the only issuer that gives a relationship bonus on credit card rewards if you have X amount of money with them?

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I never heard of BOFA doing this, maybe they do. Other might chime in on this.

As far as other CC rewards offers (as other banks do) they do.  What's the range amount of $$ you're thinking?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
First time poster.

I was wondering if Bank of America is the only issuer that gives a relationship bonus on credit card rewards if you have X amount of money with them?

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I never heard of BOFA doing this, maybe they do. Other might chime in on this.

As far as other CC rewards offers (as other banks do) they do.  What's the range amount of $$ you're thinking?

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Bank of America will give you a 10 percent bonus if you have any account with them. Their Cash Rewards gives 3.3 percent on gas and 2.2 percent on groceries. If you have more dollars your bonus can go up with 20k , 50k and 100k with them.  So if you have 100k deposited with them or Merill Lynch you get 75 percent extra.  Which would mean 5.25 percent on gas and 3.5 percent on groceries.  As they limit you to 2500 spend a quarter if you spent all of it on groceries you would get 350 dollars.  I say not worth keeping your money with them asa you would get 220 with just having an account. 120 dollars more doesn't make sense to have a 100k relationship with them.  
 

[K-in-Boston]

The Travel Rewards card becomes a 2.625% back on everything (when redeemed for travel) with no limit when you have $100k or more in BOA, Merrill Lynch and/or Merrill Edge accounts and qualify for Preferred Rewards.  For those not squeezing every possible fraction of a percent out of every transaction, it would be great to just have one card for every single purchase that's essentially universally accepted.  

The new BOA card that is coming out would also offer 3.5% back to those clients for travel and dining purchases in addition to the 2.625% on all other purchases.  To quote DOC, "...Bank of America isn’t looking to compete with the other premium cards, they are more looking toward Preferred Rewards customers who keep other money with them. They don’t want existing clients with assets going elsewhere for their credit cards, and they are hoping to attract more clients with assets under the BofA umbrella since 2.6x everywhere and 3.5x on travel/dining are both nice rates, especially for a $95 annual fee card with no foreign transaction fees."

The Preferred Rewards comes in smaller steps, too, and those accounts include everything you can think of - savings, checking, money market, IRAs, etc...

[Anonymous]

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@K-in-Boston wrote:

The Travel Rewards card becomes a 2.625% back on everything (when redeemed for travel) with no limit when you have $100k or more in BOA, Merrill Lynch and/or Merrill Edge accounts and qualify for Preferred Rewards.  For those not squeezing every possible fraction of a percent out of every transaction, it would be great to just have one card for every single purchase that's essentially universally accepted.  

The new BOA card that is coming out would also offer 3.5% back to those clients for travel and dining purchases in addition to the 2.625% on all other purchases.  To quote DOC, "...Bank of America isn’t looking to compete with the other premium cards, they are more looking toward Preferred Rewards customers who keep other money with them. They don’t want existing clients with assets going elsewhere for their credit cards, and they are hoping to attract more clients with assets under the BofA umbrella since 2.6x everywhere and 3.5x on travel/dining are both nice rates, especially for a $95 annual fee card with no foreign transaction fees."

The Preferred Rewards comes in smaller steps, too, and those accounts include everything you can think of - savings, checking, money market, IRAs, etc...

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Would you suggest I go ahead and open the deposit accounts or wait for the card to become available?

I currently have a Wells Fargo Advisors relationship, but I'm noticing that there are more rewards with other banks and cards.

[K-in-Boston]

The Bank of Americard Premium Rewards card should be coming out in September, so the wait isn't long.  From what I understand, the bonus is at the time of redemption not when you are accruing the points so "chicken or egg" shouldn't matter if you're OK waiting a few months, and the expected 50,000 point signup bonus should be worth $875 in travel at the top tier.  You do have to have a 3-month average of $20,000 or more in the accounts before becoming eligible for Preferred Rewards.  Platinum Honors also comes with a 20% money market interest rate booster (that's like 1.2% instead of 1%, not 20% yield of course), up to 100 free trades and more perks.

I'm excited for you that you're considering it.  I wish I was already in a position to make the move!

[wasCB14]

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@Anonymous wrote:

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@K-in-Boston wrote:

The Travel Rewards card becomes a 2.625% back on everything (when redeemed for travel) with no limit when you have $100k or more in BOA, Merrill Lynch and/or Merrill Edge accounts and qualify for Preferred Rewards.  For those not squeezing every possible fraction of a percent out of every transaction, it would be great to just have one card for every single purchase that's essentially universally accepted.  

The new BOA card that is coming out would also offer 3.5% back to those clients for travel and dining purchases in addition to the 2.625% on all other purchases.  To quote DOC, "...Bank of America isn’t looking to compete with the other premium cards, they are more looking toward Preferred Rewards customers who keep other money with them. They don’t want existing clients with assets going elsewhere for their credit cards, and they are hoping to attract more clients with assets under the BofA umbrella since 2.6x everywhere and 3.5x on travel/dining are both nice rates, especially for a $95 annual fee card with no foreign transaction fees."

The Preferred Rewards comes in smaller steps, too, and those accounts include everything you can think of - savings, checking, money market, IRAs, etc...

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Would you suggest I go ahead and open the deposit accounts or wait for the card to become available?

I currently have a Wells Fargo Advisors relationship, but I'm noticing that there are more rewards with other banks and cards.

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BofA: Extra CC rewards

Citi: Extra rewards + lower AFs (some nerfs may be pending here, I'm not sure)

Amex/Schwab Platinum: "Loyalty credit" (effectively an AF reduction)

Note that if you qualify using lots of cash, you're probably earning a really low yield. It's often better to qualify using investments.

Weigh the value of the extra CC rewards vs. bank/brokerage promotion chasing. Promotion chasing takes more effort but can be lucrative.

If you'll have assets at Merrill Edge, look for an asset promotion to enroll in. ME is offering $600 for $200k (as well as smaller promotions for smaller portfolios).

And, depending on the amount you are moving to BofA, it may take a few months to get your three-month average up.