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The offer mentioned below for the for the Citi® Double Cash Card is no longer available.
A new rewards credit card has just hit the market: The Bank of America® Unlimited Cash Rewards Card enters a crowded field of cash-back cards. The Unlimited Cash Rewards Card is a no-annual fee card that earns 1.5% cash back on purchases with the ability to earn a higher cash-back rate if you're a Bank of America Preferred Rewards member.
The Unlimited Cash Rewards Card has a straightforward rewards program with a twist. The card earns 1.5% cash back on everything, but it also allows you to tap into Bank of America's Preferred Rewards Program, which gives you the potential to gain an additional 25% to 75% uplift on your rewards, depending on your Preferred Rewards program member tier.
Bank of America joins Wells Fargo and Citigroup which have both rolled out cash-back cards in the past few months.
"Some customers choose to have flat cash-back products and we noticed that some of our customers [would] go elsewhere to seek out that type of product, because Bank of America didn't offer it," Jason Gaughan, Consumer Card Product Executive at Bank of America said.
The card offers a solid welcome bonus of $200 if you spend $1,000 within the first three months of opening the card and a 15 month 0% APR introductory period on balance transfers and purchases (after, variable APR 17.49% to 27.49%). It also has a 3% foreign transaction fee, so it's not a great card for international travelers.
You can redeem your cash back as a statement credit, a direct deposit into a Bank of America checking or savings account or a credit to an eligible Merrill® account.
- Unlimited cash-back
- $200 online cash rewards bonus
- 3% foreign transaction fee
- Can't receive a greater cash-back rate unless you're a Preferred Rewards member
Information about Bank of America cards has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.
Boost your cash-back earning with Preferred Rewards
In order to become a Preferred Rewards program member, you'll need at least $20,000 or more invested in a Bank of America® deposit and/or Merrill® investment account.
There are three Preferred Rewards tiers. If you're in the highest tier, Platinum Honors, you earn 2.625% back on purchases with the Unlimited Cash Rewards Card. If you're in the lowest tier, Gold, you receive 1.875% back, and if you're in the middle tier, Silver, you'll earn 2.25% cash back.
"...It pays to have a relationship, or a full relationship, with us [Bank of America]. The more you do with us, the more you get rewarded," Don Vecchiarello, spokesperson for Bank of America, said.
The ability to earn a greater cash-back rate by being a Preferred Rewards member, up to 2.625%, potentially makes the Unlimited Cash Rewards Card the best flat-rate cash-back card currently on the market. Most other cash-back cards offer rewards rates of 1.5% to 2% back, and cards with higher cash-back rates of 5% typically have rotating categories or spending caps.
Other flat-rate cash-back cards
While cardholders have the ability to earn more by being a Preferred Rewards Program member, there are other cash-back cards on the market with better rewards systems if you're not a member. The new product from Bank of America competes against other well-known cards in the cash-rewards space, namely the Wells Fargo Active Cash® Card, the Chase Freedom Unlimited® (see rates and fees) and the Citi® Double Cash Card Card. Some have a welcome bonus and a introductory APR period.
The Wells Fargo Active Cash offers 2% cash rewards on all eligible purchases and a $200 cash reward welcome bonus if you spend $500 in purchases within the first three months of account opening.
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.
- High flat-rate return on purchases
- Intro-APR for purchases and qualifying balance transfers for a year
- No annual fee
- Cell phone protection
- Has a foreign transaction fee
- Limited redemption options unless you pair it with a Wells Fargo card that allows point transfers
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.49%, 24.49%, or 28.49% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don't expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Balance Transfer Fee
3% intro for 120 days from account opening, then up to 5%, min: $5
Foreign Transaction Fee
3%
The Chase Freedom Unlimited offers new cardholders 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery service), and 1.5% on all other purchases.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers get long intro APR
- No annual fee
- Travelers face a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
The Citi Double Cash Card also has a 2% cash-back on purchases; 1% when you buy and 1% as you pay but doesn't have a welcome bonus, making the Active Cash Card a stronger choice.
Bottom line
Regardless of which cash-back card you choose, the Unlimited Cash Rewards Card comes with the potential to earn the highest cash-back rate, on all purchases, of many cards. You'll just need to be at least a Gold or Platinum Preferred Rewards program member to reap those rewards.
Information about the Bank of America's Unlimited Cash Rewards Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
