How The Bank of America Customized Cash Rewards Card’s Category Selection Works Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Introduction to the Bank of America Customized Cash Rewards Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: On This Page
10'000 Hours/DigitalVision/Getty Images May 03, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Margaret has written for Money Under 30, MoneyGeek, The Simple Dollar, CreditCards.com, Interest.com and Fiscal Tiger, among other publications. She writes about subjects including saving, credit, insurance, investing and other financial topics. Liz Bingler is an Associate Editor for CreditCards.com and Bankrate, where she focuses on product news and reviews. As an editor, her goal is to produce content that will help people to make informed financial decisions. Claire Dickey is a product editor for Bankrate, and . Before joining Bankrate, Claire worked as a copywriter for brands within the telecommunications industry as well as a hybrid marketing and content writer. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. The allows you to choose a 3 percent cash back category each month that matches your spending patterns so you can maximize rewards earnings. Categories include gas, dining, travel, online shopping, drug stores and home improvement. Below, we’ll cover the various ways you can earn with the Bank of America Cash Rewards card, how you can choose a 3 percent category, what type of purchases the categories cover and how you can utilize these categories to earn more rewards. What is the Bank of America Cash Reward s cash back structure
With the Bank of America Cash Rewards, you can choose which category to earn 3 percent cash back on—gas, online shopping, dining, travel, drug stores or home improvement and furnishings. In addition to this, you’ll also earn 2 percent cash back at grocery stores and wholesale clubs and 1 percent back on all other purchases. However, it’s important to note that there’s a $2,500 limit on combined 2 and 3 percent category purchases each quarter, then the rewards rate falls to 1 percent. If you’re able to reach this limit on 3 percent category purchases alone, you’ll earn $75 in cash back per quarter, for a total of $300 in cash back per year. Plus, you’ll earn 1 percent back on all spending after you reach the limit, meaning you could earn even more in rewards. The Bank of America Cash Rewards also includes no annual fee and a welcome bonus of $200 cash back after spending $1,000 within the first 90 days after account opening, . Can you choose your 3% cash back category
When you first get your Bank of America Cash Rewards, your 3 percent category is set to gas by default. If you don’t want to earn 3 percent cash back on gas purchases, you can choose which category you’d rather earn 3 percent back in, such as online shopping, dining, travel, drug stores or home improvement/furnishings. Additionally, you can choose to change your category once per month. So, if you anticipate that you’ll be spending a lot on dining or travel purchases during a particular month, you can change your category to accommodate your spending habits and earn more rewards. Which purchases qualify for cash back
Whenever you make a purchase with a particular merchant, your purchase is assigned a . The type of MCC that a merchant receives is dependent on the type of products or services that they offer. Whether or not a purchase you make will qualify for the category you choose depends on the MCC, Bank of America has no control over how a merchant classifies itself. That said, Bank of America does group similar types of merchants together. This means there is a greater chance that your purchases will qualify for the 3 percent cash back categories—gas, dining, travel, online shopping, drug stores and home improvement—and be classified as intended. For example, the dining category includes purchases made at restaurants, fast-food chains, bars, cocktail lounges, discotheques, nightclubs and more. Some merchant examples include Chipotle, Olive Garden, Starbucks and Grubhub. How to choose your Bank of America Cash Rewards category
Here are the steps you should follow to choose or change the 3 percent category for your Bank of America Cash Rewards card: Step 1: Analyze your spending habits. Before choosing a category, you should first review your spending patterns. For example, if you eat out frequently, you might want to choose the dining category, and if you make a lot of online purchases, you might want to choose the online shopping category. Step 2: Log in to your account and select your card. After logging in to your Bank of America account through online banking or the mobile app, select your Bank of America Cash Rewards card. Step 3: Manage your rewards. Next, select your card’s rewards tab. You should see a list of your 3 percent category choices. Choose “Get Started” to change your category. Step 4: Choose your category. If this is the first time you’re changing your category, you’ll see that your 3 percent category is set to gas. If you already know which category you want to earn cash back in, select “Change Category” and choose from the list of options. If you want to learn more about your options before choosing a category, you can select “Category Details.” This will provide you with examples of qualifying merchants and purchases. Once you change your category, your choice will go into effect for all future purchases. Do you have to change your 3% category
You don’t have to change your 3 percent category. If you spend a lot of money at gas stations each month, it may make sense for you to keep that as your 3 percent category. Or, if you —like Amazon, Etsy or Target.com—you may choose to keep your 3 percent category as online shopping. If you don’t change your category, your 3 percent category will remain the same until you change it. However, changing your category can be helpful if you have a month or two with a lot of spending in one particular area. For example, if you’re completing a home renovation, you might want to temporarily switch your category to home improvement in order to maximize your earnings. Some of the qualifying merchants for home improvement include Ace Hardware, IKEA, The Home Depot and Lowes, among many others. Or, if you’re going on vacation soon, you might want to change your category to travel for the next month. The travel category is broad and includes purchases made with merchants like Airbnb, Uber and select airlines and hotels. Plus, as outlined above, it’s quick and easy to change categories online or through the Bank of America app. Just keep in mind that you can only change categories once per calendar month, and you’ll only earn 3 percent cash back on up to $2,500 worth of purchases each quarter. After that, you’ll earn 1 percent back on purchases in your selected category until the next quarter. How to maximize Bank of America cash back categories
There are a few things you can do to maximize your earnings with the Bank of America Cash Rewards card. These include: Choosing the best 3 percent category for your lifestyle. You should choose the category that works best for you. It should be a category that you’ll have high spending in during a particular month or quarter. Switching 3 percent categories when necessary. If you need to, switch categories up to once per month. This can come in handy if you have a large expense coming up in a particular category. See if you’re eligible for Preferred Rewards. can earn 25 to 75 percent more rewards on their purchases. This means you could on 3, 2 and 1 percent category purchases. To qualify for Preferred Rewards, you must have a qualifying Bank of America or Merrill account and meet minimum balance requirements. Pairing your card with a flat-rate cash back option. To earn more rewards on all non-category spending, consider pairing the Customized Cash Rewards card with a like the or (earns cash rewards). That way, you can earn at least 2 percent back on purchases instead of 1 percent. (For the Citi Double Cash, that’s 1 percent as you buy and 1 percent as you pay for purchases.) The bottom line
The Bank of America Customized Cash Rewards card’s 3 percent categories are fairly broad, which . That way, cardholders can choose the categories they spend the most money in to maximize cash back earnings. The key is to plan out big purchases ahead of time and choose 3 percent categories according to category seasons, such as choosing the online shopping category for the holiday season or the travel category for a big summer vacation. The Bank of America Customized Cash Rewards credit card information was last updated on May 2, 2022. SHARE: Margaret has written for Money Under 30, MoneyGeek, The Simple Dollar, CreditCards.com, Interest.com and Fiscal Tiger, among other publications. She writes about subjects including saving, credit, insurance, investing and other financial topics. Liz Bingler is an Associate Editor for CreditCards.com and Bankrate, where she focuses on product news and reviews. As an editor, her goal is to produce content that will help people to make informed financial decisions. Claire Dickey is a product editor for Bankrate, and . Before joining Bankrate, Claire worked as a copywriter for brands within the telecommunications industry as well as a hybrid marketing and content writer. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer.