Notice Bank of America customers: On May 27, the lender will start a new BofA Rewards loyalty program. And unlike the present Preferred Rewards ® system, the new system won’t require people to keep a minimum balance to join. Some recent program members may view their perks modify while the move makes rewards accessible to millions of extra customers. Here’s what ready users need to know about BofA Rewards in light of new level thresholds and increased access to advantages and credits. Connected: Is the Bank of America Premium Rewards Card fair the$ 95 monthly payment? What is changing between BofA Rewards and Preferred Rewards? BofA Rewards is a win-all for Bank of America private account holders who failed to meet the required$ 20, 000 balance needs for the Preferred Rewards system. With no cost to join the Member level, account holders can receive extra benefits as customers reach economic goals, such as buying a home or car. Additionally, a credit card reward will help you increase your earning potential if you have a Bank of America card that qualifies. The new advantages and structured levels may not be as profitable for present Preferred Rewards members, though. To put it into perspective, here is a look at the balance threshold tiers for the Preferred Rewards and BofA Rewards programs: Preferred RewardsBofA RewardsGold ($ 20, 000 or more in total assets ) Member ( less than$ 30, 000 in total assets ) Platinum ($ 50, 000 or more in total assets ) Preferred Plus ($ 30, 000 to$ 100, 000 in total assets ) Platinum Honors ($ 100, 000 or more in total assets ) Preferred Honors ($ 100, 000 to$ 1 million in total assets ) Diamond Honors ($ 1 million or more in total assets ) Premier ( more than$ 1 million in total assets ) Gold status members currently earn a 25 % credit card bonus, a 0.25 % auto loan interest rate discount, a 1 % foreign currency exchange rate discount ( for mobile and online orders only, includes free standard shipping ) and a 0.125 % home equity line of credit. Current Gold account holders who may now be eligible for the Member level will only be eligible for a 10 % credit card rewards reward, a 0.110 % discount on car loans, and no refund on the foreign exchange rate. Platinum Honors members currently receive a 75 % credit card rewards bonus, whereas those with Preferred Honors status only receive a 50 % bonus. Though some members may not like these changes, some account holders may join the program when it launches May 27 to enjoy the new and improved program perks. A Bank of America unit is located in Miami’s Brickell area. What are the layers and advantages of the BofA Rewards system, E. Max. Uzcatega, Blomberg, and GETTY IMAGES? If you already have an energetic individual account with Bank of America, despite of your account balance, you may join the new system at the Member level for benefits like loan charge discounts and cash-back deals. A maximum balance threshold determined based on a three-month common across all of the qualifying Bank of America and Merrill accounts may be required to move up a level. Member: Less than$ 30, 000 in total assetsA 10 % rewards on eligible credit card spendingA$ 100 savings on closing costsA 0.2 % discount on foreign exchange rate savingsA 0.1 % discount on Merrill Guided InvestingA 0.2 % discount on all servicesA 0.625 % discount on foreign exchange rate savingsA 0.1 % discount on Merrill Guided Investing For members whose benefits will change because of the newly structured tiers, current benefits will remain in place for at least six months. For instance, if you are currently enrolled in the Preferred Rewards program and have$ 25, 000 in total assets, you are eligible for Gold status. With this status, you receive benefits like a 25 % credit card rewards bonus, a 0.25 percent discount on auto loans, and a 0.125 percent discount on HELOC rates. However, with the new BofA Rewards total asset threshold, you would now qualify for the Member tier ($ 30, 000 or less in total assets ). You would only receive a 10 % credit card rewards bonus, a 0.1 % interest rate discount on auto loans, and no HELOC rate discount. However, your benefits won’t change for at least six months because you are a Gold member of the Preferred Rewards program. If you are not a Preferred Rewards member but have a personal account with Bank of America, you can join BofA Rewards. To sign up, click on the BofA Rewards link on your account page to see an option to enroll if you meet the requirements. Your benefits will start working after you have enrolled. Again, no minimum balance is required to join as a program member. When a new total balance threshold is reached, you will be automatically upgraded to a new tier. You will keep your status for the entire year, just like the Preferred Rewards program. If at that point your account does not maintain the minimum balance requirements, you will have a three-month grace period before you are dropped to a lower status tier. Related: Bank of America Premium Rewards credit card review Maximize spending on the BofA Rewards program with credit card spendingAt TPG, we enjoy stacking offers and maximizing profits. You can earn additional points or cash back if you sign up for the new loyalty program and have a Bank of America credit card that qualifies. Check out how many BofA Rewards points you will earn with the Bank of America ® Premium Rewards ® credit card. With the Bank of America ® Travel Rewards credit card, you will earn at least 1.65 points per dollar spent on everyday purchases. Cardholder earning ratesPreferred Plus ( 25 % bonus ), Preferred Honors ( 20 % bonus ), Premier ( 75 % bonus ), and Preferred Honors ( 20 % bonus ) 2 points per dollar spent3.25 points per dollar spent2.25 points per dollar spent2.25 points per dollar spent2.25 points per dollar spent2.25 points per dollar spent2. Your points can be redeemed for travel, gift cards, or even cash back in a fixed point value of 1 % per point, if you prefer straightforward loyalty programs. If you prefer to solely earn cash-back rewards, you can also earn a credit card bonus with the Bank of America ® Unlimited Cash Rewards credit card or the Bank of America ® Customized Cash Rewards credit card, the cash-back percentage depends on your membership tier. This new program may have some drawbacks for current Preferred Rewards members, including higher account thresholds and lower bonuses for some tiers. BofA Rewards is advantageous, especially for selected eligible credit card holders, for those who have not been able to benefit from Bank of America’s loyalty program. With the right card, members can earn up to 2.625 % cash back ( or 2.625 points per dollar spent ) on everyday purchases. Overall, it’s worthwhile to sign up for BofA Rewards if you have a personal bank account with Bank of America so you can maximize your earnings and possibly benefit from a few discounts and exclusive benefits.
