Bank of America Customized Cash Rewards is a Visa credit card which lets people choose a category for earning 3% cash back. There are some hoops to jump through (see below) but the card can be a decent earner. It’s a flexible card with good niche usage potential. Most people should consider the card, although the highest value is reserved for Preferred Rewards customers at Platinum Honors tier or above.
In August 2023, Bank of America expanded their 3% categories slightly. “Gas” now includes electric vehicle charging stations. “Online shopping” now includes cable, streaming, internet, and phone plans.
FEATURES AT A GLANCE
- No annual fee
- 3% foreign transaction fee
- 3% cash back in the category of your choice (6 options) up to $2,500 spent per quarter
- 2% cash back at grocery stores and wholesale clubs
- 1% cash back on everything else
3% eligible categories:
- Gas and EV charging stations (default category until changed)
- Online shopping (including Amazon) and cable/streaming/internet/phone plans
- Dining
- Travel
- Drug stores and pharmacies
- Home improvement and furnishings
SIGN UP BONUS
You can earn a $200 sign-up bonus for spending at least $1,000 within 3 months of opening the card. This is a fair 20% ROS (Return on Spend). Customized Cash additionally comes with 0% APR for 15 months (18 months as of late 2022).
Bank of America also has occasional welcome bonuses for their checking accounts, typically $100-300. People who are new to the BoA ecosystem sometimes aim to get a bank account before applying for their credit cards. It could make the application process a little easier.
OTHER BENEFITS OF THE CUSTOMIZED CASH CARD
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- Standard Visa benefits like Zero Liability Protection
- Extended Warranty (up to 1 additional year for manufacturer warranties under 3 years)
- Access your FICO score for free
If you receive a Visa Signature version of this card, it doesn’t seem to carry any additional benefits. Bank of America gives the same benefits to everyone here.
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 670+
Bank of America pulls credit reports from Experian or Equifax. They rarely use TransUnion but it may depend on your personal relationship with the bank and your location.
Bank of America’s usual anti-churning restrictions apply (3/12 rule, or 7/12 with a checking account).
The custom category is set to gas by default. Anyone who wants to change the category must manually do it each quarter. If you don’t change it, then the category stays the same throughout the year. It’s both a pro or a con, simplifying things for some people.
There’s a spending limit of $10,000 annually ($2,500 per quarter) which combines purchases from both the custom category and grocery store/wholesale clubs. After that, the BoA card earns just 1% cash back until the next quarter begins. This limit becomes more reasonable when we exclude groceries, since 2% back on groceries is a poor rate (see below).
MAXIMIZING REWARDS WITH THE CUSTOMIZED CASH CARD
Platinum Honors status is required to maximize rewards. Bank of America even has a short explanation on their website: “Preferred Rewards members earn 25%-75% more cash back on every purchase. That means the 3% choice category could go up to 5.25% and the 2% at grocery stores and wholesale clubs could go up to 3.5%, for the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, and the 1% for all other purchases could go up to 1.75%.”
- 3% category with Gold status: 3.75%
- 3% category with Platinum status: 4.5%
- 3% category with Platinum Honors or higher: 5.25%
Points are unlimited (in the 1% category only) and don’t expire.
The “travel” category is unusually diverse. It includes airlines, car rentals, hotels, resorts, ferries, trains, taxis, buses, cruises, boat rentals, travel agencies, tolls and bridge fees, art dealers and galleries, rentals, timeshares, campgrounds, RV rentals, parking lots and garages, amusement parks, carnivals, aquariums, zoos, and tourist attractions and exhibits (including museums, wineries, and botanical gardens).
ALTERNATIVES TO THE CUSTOMIZED CASH CARD
Several grocery cards are better, with higher earn rates and/or fewer restrictions. Earning 2% cash back on groceries is a terrible deal. Any of the best everyday credit cards earn at least 2% cash back on all purchases, without any category/spending restrictions. The Bank of America Customized card is only decent for Platinum Honors members (earning 3.5% instead of 2%) but there’s the quarterly spending limit to consider. And not only is there a limit, it conflicts with the 3% category (5.25% with Platinum Honors). A separate grocery card is the best choice in 95% of situations. One exception is if you do most of your grocery shopping at a wholesale club.
Likewise, it’s hard to recommend BoA’s card for gas purchases. Multiple cards already give 4% to 5% cash back on gas. Platinum Honors members (or higher) can earn 5.25% cash back on gas, but why go through added hassle for only 0.25% extra? And the chosen category could go towards something else.
For dining and drugstores, the Chase Freedom Flex is generally better, especially paired with a Chase Sapphire Reserve. The Chase Trifecta earns plenty of cash back on these categories, and travel too. As a no-fee card for domestic travel though, the Bank of America card is fair. Travel cards with fees are generally better, so there are slim pickings in the no-fee corner. Customized Cash is a decent option especially with Platinum status or better.
The Bank of America Customized Cash Back Rewards is best suited for:
- Online shopping (depending on retailer, otherwise U.S. Bank Cash+ or Max Cash Preferred could be better)
- Home improvement or furnishings
- Travel
A simple alternative is the American Express Blue Cash Preferred. It earns 6% cash back on groceries and streaming, plus 3% back on gas and transit. The $95 annual fee is worthwhile for some people. They don’t need to carry multiple cards. The sign-up bonus also offsets the annual fee (and sometimes AMEX waives the fee for the first 12 months). The Blue Cash Everyday, the no-fee version, earns 3% cash back on online shopping, gas, and groceries—all within the same card. Bank of America being limited to one category is inconvenient.
CONCLUSION
The Customized Cash Rewards credit card might not be for everyone, but does a decent job when it matters. It’s a reasonable pick in a few categories despite requiring Platinum membership (or higher) to unlock the card’s full potential. In other categories however, better options are readily available. Anyone considering the Customized Cash has to check their spending habits to see if it makes sense for them. Not everyone will find it valuable. However, it’s still a flexible card which can work for many people.
The downside, aside from manually choosing categories, is that the card has no additional perks. Consumer protections are nonexistent beyond the bare minimum. Most cards have something beneficial, so on Customized Cash Rewards it’s almost shocking to see nothing at all. Bank of America’s website is also outdated and difficult to use, especially compared to other banks like Chase and American Express.
We rate the Bank of America Customized Cash Rewards card 4 out of 5 stars. ⭐⭐⭐⭐
Note: This review was last updated in August 2023. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to take advantage of our personalized consulting services!