Is The Bank of America Customized Cash Rewards Worth It?

The Bank of America® Customized Cash Rewards credit card is a worthy addition to most wallets. Its rewards structure is more attractive as a part of a broader cash back strategy, and it gets even better if you have at least $20,000 in deposits or investments with the bank. Plus, cardholders who carry balances from month to month can benefit from a 15-month introductory APR offer on balance transfers and new purchases.

So, when is this card worth it and when is it not? Read on to find out.

When is the Bank of America Customized Cash Rewards worth it?

You want to earn rewards on everyday categories

The Customized Cash Rewards is best known for offering 3 percent cash back on a category of your choosing, and you can change your category every month if you wish. You can choose from the following: gas and electric vehicle charging stations, online shopping (including cable, streaming, internet and phone services), dining, travel, drugstores or home improvement and furnishings. Plus, all cardholders get automatic 2 percent cash back at grocery stores and wholesale clubs.

However, note that the 3 percent and 2 percent categories are capped at a combined $2,500 in quarterly spending (then you’ll earn 1 percent back). All other purchases earn 1 percent cash back.

I like how the Customized Cash allows users to change their 3 percent category every month, and the list of potential choices includes something for everyone. This card is especially advantageous if you have a 2 percent cash back card as a foundation because you could then focus the Customized Cash card’s entire $2,500 quarterly limit on your 3 percent categories.

You’re a Preferred Rewards member

Thanks to the Bank of America Preferred Rewards program, cardholders who have at least $20,000 (three-month combined average daily balance) in eligible Bank of America or Merrill accounts can get a 25 percent rewards boost. That means that the 3 percent cash back rate becomes 3.75 percent, the 2 percent rate becomes 2.5 percent and the 1 percent rate becomes 1.25 percent.

If you have at least $50,000 in eligible accounts, your rewards stretch 50 percent further. In that case, the 3 percent, 2 percent and 1 percent categories will instead earn 4.5 percent, 3 percent and 1.5 percent cash back, respectively.

And if you have at least $100,000 in eligible accounts, there’s a 75 percent rewards bonus. That means that the 3 percent category will become 5.25 percent back, the 2 percent category will become 3.5 percent back and the 1 percent category will become 1.75 percent back. Those are stellar returns, particularly from a card that does not charge an annual fee.

However, the APYs on Bank of America’s consumer deposit accounts aren’t always the most competitive, so you’ll want to weigh the bonus credit card rewards against the opportunity cost of leaving large amounts of money in a low-interest account instead of a high-yield savings account.

You want a 0% intro APR offer while still earning rewards

Chasing rewards only makes sense if you can pay your credit card bills in full and avoid interest charges since the average credit card APR is currently about 20 percent. But if you need to transfer a balance or pay off a large purchase over time, the Customized Cash card provides a 0 percent intro APR for 15 billing cycles on purchases and qualifying balance transfers (then a variable APR of 18.74 percent to 28.74 percent).

If you’re planning to transfer a balance, note that balance transfers must be made within the first 60 days to qualify for the 0 percent introductory APR and there’s a balance transfer fee of 3 percent of the amount of each transaction. After the intro balance transfer fee offer ends, the fee for future balance transfers is 4 percent.

Although this 0 percent intro APR offer is not one of the longest balance transfer offers on the market, it’s still good, especially since the card’s rewards can offer long-term value. For context, the longest 0 percent APR offers can be up to 21 months, but typically come from cards that don’t offer rewards or additional benefits. Rewards cards with an introductory APR offer typically have shorter intro APR periods ranging from 12 to 15 months, making the Customized Cash’s offer even stronger.

Of course, if you take advantage of the offer, aim to pay off the entire balance before interest starts accruing.

You want to earn a welcome offer

New cardholders can earn $200 in online cash rewards after spending $1,000 within the first 90 days of account opening. The bonus amount is on par with the welcome offers that other no-annual-fee cash back cards typically offer, but the spend requirement is slightly higher than competitors like the Wells Fargo Active Cash® Card or the Chase Freedom Flex®*.

You want extra card perks

The Customized Cash card also participates in the BankAmeriDeals program, which gives extra cash back (often 5 percent to 15 percent) when you opt in to participating promotions and pay with your card.

Additionally, all Bank of America credit and debit cardholders receive access to Museums on Us, which provides free general admission to hundreds of participating museums and other cultural institutions during the first full weekend of every month.

When is the Bank of America Customized Cash Rewards not worth it?

You only want to use one credit card

If you’re going to use one card for everything and the majority of your monthly spending falls outside of one of the Customized Cash’s 3 percent categories, you’d probably be better off with a no-annual-fee card that gives an unlimited 2 percent cash back on all purchases. For example, you might want to consider the Wells Fargo Active Cash, which offers unlimited 2 percent cash rewards on purchases, or the Citi Double Cash® Card, which provides a total of unlimited 2 percent cash back (1 percent cash back when you make purchases and another 1 percent when you pay for purchases).

The Active Cash and Double Cash have no cap on their 2 percent rewards, unlike the Customized Cash, which limits its 2 percent and 3 percent rewards to the first $2,500 in combined spending each quarter (then 1 percent). For large spenders looking to put all their purchases on one card, the Active Cash and Double Cash’s unlimited rewards at a lower rate might be better than the Customized Cash’s higher initial rewards that drop down to 1 percent once you hit the quarterly spending cap.

You don’t want to manually switch your categories

The Bank of America Customized Cash Rewards card lets you switch your 3 percent category once every calendar month, with the previous month’s category carrying over if you don’t change it. Until you change your category selection for the first time, it’s set to gas and EV charging stations.

One notable perk is that old categories automatically carry over, which means you don’t need to activate new 3 percent categories regularly like with the Chase Freedom Flex (whose rotating bonus categories must be manually activated every quarter). Still, you’ll likely want to if your top spending category changes from month to month and you’re seeking to maximize rewards.

If that’s still too much of a hassle, you may want to consider a card like the Citi Custom Cash® Card, which gives 5 percent cash back on your top eligible spending category each billing cycle (on up to $500 per billing cycle, then 1 percent back). You’ll also earn 1 percent cash back on all other purchases. Through June 2025, you can also earn an additional 4 percent cash back on hotels and car rentals booked through Citi Travel.

Should you get the Bank of America Customized Cash Rewards?

If you like cash back cards and are just starting to build your collection, there’s a good chance the answer to this question is yes.

Getting 3 percent cash back on a popular category is sweet, and it’s even sweeter with this card because you can choose your own adventure. Some other rotating category card issuers determine the categories for you, so they’re not always as useful.

For instance, if you have the Customized Cash card, maybe one month you’ll choose travel as your 3 percent category because you’re planning a big trip. The next month you might switch to home improvement and furnishings because you’re updating your home. The month after that, your best fit could be online shopping. It’s up to you.

But if you’re a savvy credit card user with a stack of cash back cards already in your wallet, you’ll also need to consider the credit cards you already have. Will the Customized Cash card’s 3 percent and 2 percent categories improve upon the rewards you’re already earning, or do you have other options that could meet or exceed those returns?

On the other side of the spectrum, if you want a single card to use for all your spending for simplicity’s sake, you’ll likely find that a 2 percent flat cash back card will end up giving you a higher average rewards rate unless the majority of your spending happens to fall into one of the Customized Cash’s 3 percent categories.

The bottom line

Whether to sign up for the Bank of America Customized Cash Rewards credit card comes down to how you spend your money and how many cards you’re willing to juggle. It generally works better as part of a broader multi-card strategy, focusing on certain types of occasional spending rather than serving as a daily driver. The higher you climb on the Preferred Rewards chart, the more likely this card could serve as your everyday workhorse.

So, is the Bank of America Customized Cash Rewards credit card worth it? I’d say yes, even if you don’t have a spare $100,000 around the house. But I wouldn’t suggest making this your primary card unless you can hit that top Preferred Rewards threshold.

Have a question about credit cards? E-mail me at ted.rossman@bankrate.com, and I’d be happy to help.

*The information about the Chase Freedom Flex® here has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the issuer.  

The information about the Bank of America® Customized Cash Rewards credit card was last updated on Oct. 11, 2024.