Bank of America® Customized Cash Rewards Credit Card

Who Is the Bank of America Customized Cash Best For?

The Bank of America Customized Cash Rewards card stands apart from most cash back cards by letting you choose your own 3% bonus category. This flexibility makes it well-suited for people whose highest spending concentration falls into a single predictable category. It is especially attractive for Bank of America and Merrill Lynch customers, who can boost their rewards rates significantly through the Preferred Rewards program.

If your spending is evenly distributed across many categories with no clear leader, a flat-rate 2% card may serve you better. But if you can identify one category that dominates your monthly budget, the Customized Cash lets you target that spending with a higher return than most no-fee alternatives offer.

Rewards Breakdown

You earn 3% cash back in a category of your choice (on up to $2,500 in combined choice category and grocery purchases per quarter, then 1%), 2% at grocery stores and wholesale clubs (subject to the same $2,500 combined quarterly cap), and 1% on all other purchases. The choice categories include gas, online shopping, dining, travel, drug stores, and home improvement and furnishings.

The ability to select and change your 3% category each month is the card's headline feature. If you spend heavily on gas in the summer and online shopping during the holidays, you can adjust accordingly. This adaptability gives the Customized Cash a practical edge over rigid fixed-category cards.

The real multiplier, however, comes from Bank of America's Preferred Rewards program. If you maintain $20,000 or more in combined Bank of America and Merrill accounts, you earn a 25% bonus on your cash back rates, boosting the 3% to 3.75%. At the $50,000 tier, the bonus increases to 50%, turning the 3% into 4.5%. At $100,000, the bonus reaches 75%, pushing the 3% to 5.25%. These boosted rates on a no-annual-fee card are among the best available anywhere in the cash back category.

Fee Analysis

There is no annual fee. The sign-up bonus is typically $200 after spending $1,000 in the first 90 days. A 0% introductory APR on purchases applies for the first 15 billing cycles, which is useful for spreading out a large purchase. The regular APR is variable and in line with similar cards in this tier.

The card charges a 3% foreign transaction fee, making it unsuitable for use abroad. There is no penalty APR for late payments on existing balances, though a late payment fee does apply.

How It Compares to Alternatives

Against the Chase Freedom Unlimited, the Customized Cash earns more in its chosen 3% category but less on the base rate (1% vs. 1.5%). The Freedom Unlimited also adds 3% on dining and drugstores without requiring you to pick those as a choice category. Without the Preferred Rewards boost, the Freedom Unlimited is the more versatile card for most people.

Against the Citi Custom Cash, which earns 5% on your top spending category each billing cycle (up to $500), the Bank of America card offers a lower rate but a higher spending cap ($2,500 per quarter vs. $500 per cycle). For moderate spenders, the Citi card earns more per dollar in the top category; for heavier spenders, the Bank of America card captures more total rewards.

The Customized Cash becomes a significantly more compelling product for Preferred Rewards members. At the Gold tier and above, it outperforms most no-fee competitors on a per-category basis, and the combination of multiple Customized Cash cards (Bank of America allows more than one) with Preferred Rewards can create a high-earning multi-card strategy with zero annual fees.

Verdict

The Bank of America Customized Cash Rewards card is a flexible, no-fee cash back option that becomes genuinely powerful within the Bank of America ecosystem. On its own, it is a solid card with a useful customizable category but unexceptional base rates. Paired with Preferred Rewards, it transforms into one of the highest-returning cash back cards available at any price point. The card rewards loyalty to the Bank of America platform, and for customers already banking with them, it is a clear addition to the wallet.