Bank of America® Customized Cash Rewards: How apply

Learn how the Bank of America® Customized Cash Rewards works, including the 3% choice categories, the $2,500 quarterly cap, key fees, Preferred Rewards boosts, and step-by-step guidance on applying.

Overview of the Bank of America® Customized Cash Rewards

The Bank of America® Customized Cash Rewards is a cash back credit card built around one big idea.

You pick a 3% “choice category” that fits your life, and you can change it as your spending changes.

It is designed for people who want strong everyday rewards without committing to a premium annual fee.

It also stands out because the 3% and 2% bonus earnings share a single quarterly spending cap, which affects how you should plan your categories.

Who this card is designed for

This card is usually a fit for people whose spending is predictable in one main area.

It also works well for anyone who likes the flexibility to switch their bonus category when seasons change.

It can be especially practical if you already bank or invest with Bank of America or Merrill, because relationship status may increase the rewards you earn.

Charge card vs credit card

The Bank of America® Customized Cash Rewards is a credit card.

That means you have a credit limit and you can carry a balance, though interest may apply if you do not pay in full.

The “value equation” in one paragraph

The value equation here is simple but important.

You can earn elevated cash back in a category you control, plus automatic bonus cash back at grocery stores and wholesale clubs, but only up to a quarterly cap, and then the rate drops to the base level.

If your spending stays inside the cap and you pick the right category for your habits, the card can feel “tailor-made,” and if you blow past the cap every quarter, you may want a second card for overflow spending.

Quick facts (scannable summary)

Key fees (annual fee, authorized users, foreign transaction fee)

Annual fee: $0.

Foreign transaction fee: typically disclosed as 3% on foreign purchases.

Balance transfer fees often apply, and may include an introductory fee for a limited window and then a higher fee after that.

Late payment and returned payment fees may apply depending on your card agreement.

Fees and APR offers can change, so confirm your specific terms before applying.

Reward structure (earning, caps, redemption basics)

You earn 3% cash back in one category of your choice.

You earn 2% cash back at grocery stores and wholesale clubs automatically.

You earn 1% cash back on all other purchases.

The 3% and 2% rates apply to the first $2,500 in combined purchases each quarter across the choice category, grocery stores, and wholesale clubs.

After you hit that quarterly cap, those purchases generally earn 1% until the next quarter begins.

You choose from six 3% categories, and you can change your choice category once per calendar month for future purchases using online banking or the mobile app.

Core benefits (top 5 bullets)

• No annual fee.
• Flexible 3% category choice, with the ability to switch monthly.
• Automatic 2% at grocery stores and wholesale clubs up to the quarterly cap.
• Straightforward 1% base earning for everything else.
• The potential to earn more through Bank of America Preferred Rewards if you qualify and enroll.

Eligibility and approval: what typically matters

Credit profile expectations (general, no promises)

Approval decisions usually consider your overall credit history.

Issuers commonly look at payment history, utilization, and recent applications for credit.

They also consider the relationship between your income and your existing debt obligations.

A strong profile can help, but there are no guarantees, because underwriting is based on the issuer’s internal criteria at the time you apply.

Income and spend patterns that may help (general guidance)

Applications typically ask for income information and housing costs.

Lenders use that to evaluate affordability and risk.

Consistent on-time payments across existing accounts generally helps your overall profile.

Lower revolving utilization often helps as well, especially in the months leading up to an application.

Invitation or application flow

This is not an invite-only product.

Most people apply through the standard online application flow.

Some applicants receive a near-instant decision, while others may be asked for additional review or verification.

Fees and costs you must understand first

Annual fee breakdown and what’s included

The annual fee is $0.

That means you do not need credits or perks to “break even” just for holding the card.

Instead, your value comes from using the bonus categories well and staying mindful of the quarterly cap.

Authorized user costs and household add-ons

Authorized user rules can vary by product and can change over time.

If you want to add a partner or family member, confirm the current authorized user policy and any costs in your terms before applying.

Intro APR, ongoing APR, and balance transfer costs

Offers on purchases and balance transfers can vary by time and by application channel.

Some versions of the offer may include an introductory 0% APR window on purchases and qualifying balance transfers, often tied to balance transfers made within a certain number of days from account opening.

Balance transfers commonly carry a fee, and that fee can materially affect whether a transfer is worth it.

If your goal is debt payoff, calculate the transfer fee plus the monthly payment you can realistically make, not just the intro APR headline.

Foreign transaction fee reality check

A foreign transaction fee can make international travel and foreign online shopping more expensive.

If you travel often, it may be worth pairing this card with a no-foreign-transaction-fee card for overseas spending.

Rewards: earning and redemption (the real math)

How you earn

You select one 3% category from a list of six.

The six categories are Gas and EV Charging Stations, Online Shopping, Dining, Travel, Drug Stores, and Home Improvement and Furnishings.

Your 3% rewards apply to purchases coded by merchants into that selected category, and coding can sometimes differ from what you expect.

You also earn 2% at grocery stores and wholesale clubs automatically.

The combined quarterly cap is the key constraint to understand, because it is shared between your 3% choice category spending and your 2% grocery and wholesale club spending.

How to pick the best 3% category for your life

Pick the category where you can reliably spend without forcing it.

If you commute daily or have a lot of driving, Gas and EV Charging Stations may be the obvious choice.

If your household spends heavily online, Online Shopping can be a powerful default category, especially if you buy electronics, clothing, home essentials, and pay for certain digital services online.

If you eat out frequently, Dining can be simple and consistent.

If you book flights, hotels, rentals, parking, tolls, rideshare, and transit often, Travel can capture more of your real-world movement than a narrow “airfare only” category.

If you rely on pharmacies, Drug Stores can be useful, though it is often lower total spend for many households.

If you are furnishing a home or doing projects, Home Improvement and Furnishings can be a high-impact temporary category you switch into for a few months.

The quarterly cap and why it changes the strategy

Because the cap is shared, you are effectively “budgeting” your bonus earnings.

If your grocery and wholesale club spend alone is close to the cap, you might not get much room left for 3% category spending.

If your grocery and wholesale spend is modest, you can reserve most of the cap for your 3% category.

The best approach is to estimate your quarterly spend in grocery stores and wholesale clubs first, then allocate the remaining cap to your chosen 3% category.

Redemption basics and what to watch

Redemption options can include statement credit and deposits into eligible Bank of America accounts, among other choices.

Minimum redemption rules can vary by method and can change, so confirm the current redemption details inside your rewards dashboard after approval.

A simple habit that helps is to redeem on a schedule, like monthly or quarterly, so rewards do not sit unused for long periods.

Benefits deep dive

Travel benefits

This is primarily a cash back card, not a premium travel perks card.

You may still benefit from earning in the Travel category if you select it, but you should not expect lounge access or elite hotel status as a core feature.

If travel is your main use case, focus on whether the Travel category matches how you actually spend, like rideshare, transit, tolls, rentals, and parking.

Lifestyle and experiences

The biggest “lifestyle” advantage is the ability to aim the 3% category at whatever your current lifestyle needs most.

That flexibility can feel like a perk because it keeps the card relevant year after year.

Credits and recurring statement perks

This card is not typically centered around monthly credits.

For many people, that is a positive, because it reduces the need to track enrollment rules and expiration timelines.

Purchase protections and card security

Protections and security tools vary by issuer, card network, and specific terms.

Treat purchase protections as a bonus, not the foundation of your decision, unless you have confirmed the current benefits guide for your exact version of the card.

Relationship rewards with Bank of America Preferred Rewards

If you qualify and enroll in Bank of America Preferred Rewards, you may earn a rewards bonus on eligible Bank of America credit cards.

The bonus is commonly described as 25% to 75% more rewards, depending on your tier.

Eligibility is generally tied to having an eligible Bank of America checking account and meeting a combined balance requirement across eligible Bank of America and Merrill accounts.

The published tier thresholds are commonly shown as $20,000 for Gold, $50,000 for Platinum, $100,000 for Platinum Honors, and $1,000,000 for Diamond Honors, using a combined balance measurement.

If you already keep qualifying balances for your own reasons, this program can meaningfully increase the effective cash back rate on this card.

If you would need to move money you do not want to move, it is better to treat Preferred Rewards as a “nice extra,” not a reason to over-optimize your banking.

Pros and cons

Pros

• $0 annual fee keeps the ongoing cost simple.
• Flexible 3% category choice from six useful everyday categories.
• Ability to change the 3% category once per month for future purchases.
• Automatic 2% at grocery stores and wholesale clubs up to the shared quarterly cap.
• Potential reward boosts through Bank of America Preferred Rewards for eligible customers.

Cons

• The 3% and 2% rewards share a single quarterly cap, which limits how much bonus earning you can do.
• Foreign transaction fees may reduce value for international travel and foreign merchants.
• Merchant category coding can sometimes place a purchase outside the category you expected.
• If your spending is very high, you may want an additional flat-rate card for purchases after you hit the cap.

Who this card is best for, and who should skip

Best-fit profiles (3 profiles)

Profile 1: The planner who can stay under the quarterly cap and wants strong rewards in one chosen category.

Profile 2: The household that spends steadily at grocery stores and wholesale clubs and also has a clear “top” spending category like online shopping or gas.

Profile 3: The Bank of America or Merrill customer who already qualifies for Preferred Rewards and wants to amplify cash back.

Not a fit if…

Not a fit 1: You want unlimited high-rate rewards with no quarterly cap to manage.

Not a fit 2: You travel internationally often and want a card with no foreign transaction fees.

Not a fit 3: Your spending does not concentrate in any of the six categories enough to justify managing the selection.

Head-to-head comparisons

Bank of America® Customized Cash Rewards vs Citi Custom Cash

Both cards focus on rewarding a category that fits your spending.

Customized Cash Rewards lets you select a category, while some competitors automatically reward your top eligible category each cycle.

If you prefer control, selecting a category can feel better.

If you prefer automation, an “automatic top category” approach can feel easier.

Bank of America® Customized Cash Rewards vs Chase Freedom Unlimited

Some competitors emphasize a single base rate plus boosted categories.

Customized Cash Rewards emphasizes a selectable 3% category plus automatic grocery and wholesale club rewards under a quarterly cap.

If your spending strongly matches one of the six categories, customization can win.

If you want a simple “everything earns the same strong rate” experience, a flat-rate card might feel easier.

What you gain or give up at each price tier

At the no-annual-fee tier, the goal is consistent rewards without needing credits to offset fees.

At the annual-fee tier, you often pay for premium travel protections, experiences, and credits.

If you do not consistently use premium perks, a no-annual-fee card with strong everyday earning can be the more rational long-term choice.

How to apply for the Bank of America® Customized Cash Rewards step by step

Application steps

Step 1: Review the current offer details, including APR ranges, intro APR windows, and balance transfer timing rules.

Step 2: Confirm you understand the quarterly cap and how it applies to the 3% and 2% categories together.

Step 3: Gather your personal information, including address history and income details.

Step 4: Submit the application with accurate information.

Step 5: If requested, complete identity verification or provide additional documentation.

Step 6: After approval, activate the card, set up online access, and choose your 3% category in your account settings if needed.

Step 7: Consider setting autopay to help avoid missed payments and to keep your account in good standing.

What to prepare before you apply

Know your total annual income and your monthly housing payment.

Have your Social Security number or taxpayer identification information ready if you are applying in the U.S.

Decide whether you want to do a balance transfer, and if so, have the other creditor account details ready.

If you want Preferred Rewards benefits, check whether you already meet the program requirements and understand the balance rules.

What happens after approval

You will receive your card and activate it before use.

You should log in and confirm your selected 3% category and your redemption preferences.

You should also set up alerts for payments and for approaching the quarterly cap if you like to manage rewards tightly.

Alternatives if you want similar value for less effort

Best “set it and forget it” alternative

If you do not want to manage categories or caps, a flat-rate cash back card can feel simpler.

This approach is especially useful once you regularly exceed the quarterly cap on this card.

Best travel-friendly alternative

If you travel internationally often, a card with no foreign transaction fees can be a better companion for overseas spending.

You can still keep Customized Cash Rewards for domestic category spending where it shines.

FAQs

Is the Bank of America® Customized Cash Rewards worth it?

It can be worth considering if you can take advantage of the 3% category and the 2% grocery and wholesale club rewards without constantly exceeding the quarterly cap.

It is also more compelling if you already qualify for Preferred Rewards.

Can I change my 3% category?

Yes, the choice category can be changed once per calendar month for future purchases through online banking or the mobile app.

What are the 3% category choices?

The choices are Gas and EV Charging Stations, Online Shopping, Dining, Travel, Drug Stores, and Home Improvement and Furnishings.

How does the quarterly cap work?

The first $2,500 in combined purchases each quarter across the choice category, grocery stores, and wholesale clubs earns the bonus rates.

After that combined limit is reached, those purchases typically earn 1% until the next quarter.

Does the card have an annual fee?

No, it is generally offered with a $0 annual fee.

Does the card charge foreign transaction fees?

Foreign transaction fees are typically disclosed for this card, and you should confirm the current fee in your pricing terms before applying.

Can Preferred Rewards increase my cash back?

Preferred Rewards may provide a rewards bonus on eligible Bank of America credit cards for enrolled members who meet program requirements.

Your bonus depends on your tier.

Are there promotional offers like intro APR or a bonus?

Promotions can vary by time and by offer channel.

Always review the current offer details you are applying under, because the exact terms can change.

Disclosures

Rates and fees disclaimer

Rates, fees, categories, caps, and promotional offers can change at any time.

Your APR, credit limit, and approval outcome depend on creditworthiness and the issuer’s underwriting.

Always review the official pricing, terms, and program rules before applying.

Editorial and affiliation disclosure

This article is for informational purposes only.

We are not Bank of America.

We do not represent Bank of America or Merrill.

We are not affiliated with any institution mentioned.

All trademarks belong to their respective owners.