Key takeaways
- Choosing between the Chase Sapphire Preferred® Card and the Bank of America® Premium Rewards® credit card can be difficult, as both are good choices if you’re looking for a travel card with an annual fee under $100.
- The Bank of America card may be a better choice if you bank with Bank of America or Merrill and meet the criteria for one of the Bank of America Preferred Rewards tiers.
- The Chase Sapphire Preferred card, on the other hand, could come out ahead if you plan to travel a lot and take advantage of higher-value redemptions with Chase Ultimate Rewards travel partners.
If you want to add a travel credit card to your wallet without paying a high annual fee, both the Bank of America® Premium Rewards® credit card and the Chase Sapphire Preferred® Card deserve your consideration.
As you compare the two, you may discover one of the cards is a better fit for your spending patterns and financial goals. For example, the Bank of America Premium Rewards card will handsomely reward you if you also carry a high balance in your Bank of America or Merrill savings account. On the other hand, using the Chase Sapphire Preferred could really pay off if you use it to book travel through Chase Travel℠ or plan to transfer your points to a high-value transfer partner.
We’ve carefully reviewed the details of both options. So, keep reading to see which one makes the most sense for you.
Main details
| Cards | Bank of America® Premium Rewards® credit card | Chase Sapphire Preferred® Card |
|---|---|---|
| Welcome bonus | 60,000 online bonus points after spending $4,000 on purchases in the first 90 days | 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening; for a limited time, get up to $300 in statement credits on Chase Travel purchases during the first year |
| Rewards rate |
|
|
| Annual fee | $95 | $95 |
| Foreign transaction fees | None | None |
Bank of America Premium Rewards vs. Chase Sapphire Preferred highlights
Welcome bonus winner
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Both cards offer a generous welcome bonus of 60,000 points for spending $4,000 within three months of opening your card. However, the value of these points differs.
Your Bank of America Premium Rewards card points will always be worth just 1.0 cents each. Your Chase Sapphire Preferred Ultimate Rewards points, on the other hand, could be worth around 2.0 cents each.
apiece on average if you redeem them with high-value travel partners through Chase Travel, according to Bankrate’s latest credit card point valuations.
Rewards rate winner
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In general, the Chase Sapphire Preferred offers a better rewards rate. For example, you can earn 5X points on travel booked through Chase Travel, 3X points on dining, online grocery orders and select streaming services, 2X points on general travel and 1X points on everything else.
While it’s possible to earn as much or more with the Bank of America Premium Rewards card, you’ll have to be at least a Platinum or Platinum Honors Preferred Rewards-level member to do so (two of the five membership levels offered through the Bank of America Preferred Rewards program).
To attain that status, though, you must maintain a three-month average balance in your Bank of America deposit or Merrill investing account of $50,000 for the lower tier or $100,000 for Platinum Honors status. As a Platinum Preferred Rewards member, you’ll earn a total of 3X points on dining and travel and 2.25X points on all other purchases. If you reach the Platinum Honors level, you’ll earn 3.5X points on dining and travel and 2.62X points on all other spending.
Preferred Rewards membership begins at just $20,000 across eligible accounts, but the boosted earning is much less at that level.
Annual fee winner
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Both options charge a $95 annual fee, which is low for a travel credit card. We understand the hesitation to pay any fee, but both cards’ introductory bonuses easily make up for the initial expense — provided you pay off your balance in full each month to avoid getting hit with interest charges.
Plus, if you use either card regularly, you can also expect the rewards to outweigh the cost in the future. For example, you’ll see a return on your investment by using the Chase Sapphire Preferred to book just $1,900 worth of travel through the Chase Travel portal per year. You’ll also come out ahead if you spend more than $396 a month on travel and dining using the Bank of America Premium Rewards card.
Foreign transaction fee winner
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If you travel abroad regularly, we’ve got good news. Neither card charges foreign transaction fees, which means you can use both cards internationally without incurring extra costs.
Which card earns the most?
Under most circumstances, you’ll earn the most rewards using the Chase Sapphire Preferred. But let’s look at an example scenario to see.
Bank of America Premium Rewards vs. Chase Sapphire Preferred spending example
In a given month, let’s say you use your Bank of America Premium Rewards card to pay for $500 in dining purchases, $1,000 in travel purchases and $1,000 on everything else. The dining and travel categories earn you 2X points (without any Preferred Rewards tier bonuses), so you’ll earn 3,000 points for those purchases. You’ll also earn 1,500 points for your other charges (at 1.5X points per dollar spent). Since points are worth 1 cent each, you’ll have earned $45 in rewards.
Now, imagine using your Chase Sapphire Preferred to pay for the same expenses. The dining category gets you 3X points, so you’ll earn 1,500 points for eating out. Travel not booked through the Chase Travel platform earns 2X points (2,000 points), and all other purchases earn you 1X points (1,000 points), for a total of 4,500 points. Assuming a point value of 1 cent apiece, you’ll receive $45 in rewards.
However, if you use the travel portal to book your trip, you’ll get 5,000 points instead of 2,000. Then, if you redeem those points through the platform later, they’ll be worth 1.25 cents each, or $62.50. That means, by using the Chase Travel portal, your $1,000 travel purchase could earn you more in rewards than all of your Bank of America Platinum Rewards card monthly spending combined.
However, let’s say you’re a Bank of America Preferred Rewards member at the Platinum Honors tier. You’ll earn 3.5X points on dining and travel purchases (5,250 points) and 2.62X points on all other spending (2,620 points). So, with points valued at 1.0 cents each, you’ll earn $78.70 in rewards.
Still, the total value of your Chase Sapphire Preferred rewards when redeemed through Chase Travel — is $93.75 (7,500 total points at a value of 1.25 cents each), beating out the Bank of America Preferred Rewards card. Even better, by transferring your points to high-value travel partners, they could be worth an average of 2.0 cents each. That would equal a total value of $150, which is nearly double the amount of value you could get from your Bank of America rewards — even if you’re a Platinum Honors Preferred Rewards member.
Why you should get the Bank of America Premium Rewards
The Bank of America Premium Rewards card is a good travel rewards card that can be worth it for travel lovers, especially those who are already part of the Bank of America Preferred Rewards program. In addition to solid earnings on travel and dining purchases, here are some more benefits you should consider.
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Additional Bank of America Premium Rewards card benefits include:
- Up to $100 in credits to cover your Global Entry or TSA PreCheck application fee
- Up to an annual $100 credit for incidental airline expenses, such as seat upgrades, flight changes, baggage fees, in-flight purchases and more
- Access to the Visa Signature Luxury Hotel Collection and the chain’s related benefits (where available), such as a $25 food and beverage credit, late checkout, automatic room upgrade, VIP guest status and more
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You can redeem your Bank of America Premium Rewards card points for:
- Travel (booked through the Bank of America Travel Center)
- Gift cards
- Cash back as deposit to eligible Bank of America or Merril accounts
- Statement credits
Note that you’ll need a minimum of 2,500 points to redeem for travel and 3,125 points to redeem for gift cards. Plus, unlike with the Chase Sapphire Preferred, you won’t get a redemption bonus for putting your points toward travel.
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You’ll need good or excellent credit to qualify for the Bank of America Premium Rewards card. So, be sure your credit score is 670 or higher before applying.
Why you should get the Chase Sapphire Preferred
The Chase Sapphire Preferred has long been considered one of the best travel cards available. Although this card comes with a $95 annual fee, the card’s earnings rate and the 25 percent bonus value added to your points when redeemed through the Chase Travel portal definitely make this card worth having in your wallet. Here are some other reasons to consider the Chase Sapphire Preferred.
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Additional benefits of the Chase Sapphire Preferred card include:
- An anniversary bonus of 10 percent of the points you earned the previous year
- Up to $50 annual credit on lodging booked through Chase Travel
- Travel support in the form of baggage delay coverage, trip delay reimbursement, trip cancellation insurance, rental car coverage and 24/7 emergency assistance
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You can redeem your Chase Sapphire Preferred points for:
- Travel (note that booking with a Chase transfer partner through the Chase Travel portal makes your points worth 1.25 cents each, but transferring to a travel partner could make them worth even more)
- Statement credits
- Cash back
- Gift cards
- Chase Experience events
- Merchandise
Be aware that if you use your points to cover PayPal or Amazon.com purchases, they’ll only be worth 0.8 cents apiece.
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The Chase Sapphire Preferred card also requires good or excellent credit to qualify. Be sure to check your score before submitting an application.
The bottom line
If you’re a loyal Bank of America or Merrill customer with a significant deposit or investment account balance, the Bank of America Premium Rewards card could be the right option for you. But, if you plan to book a lot of travel (particularly through the Chase Travel platform), the Chase Sapphire Preferred will likely suit you best.
However, you may want to consider getting both cards. That way, you can take advantage of both sets of perks.
The information about the Bank of America® Premium Rewards® credit card was last updated on Oct. 15, 2024.
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