Bank of America Revamps Credit Card Rewards – What You Need to Know About the New Cash Back Opportunities

Financial institutions regularly improve their products and services to retain customers and attract new ones. Bank of America did just that with its revamped credit card rewards, and Redditors were quick to celebrate.

Some of them applauded Bank of America’s recent announcement of better rewards amid other competitors “nerfing” their credit cards. Here’s what you should know about the bank’s new credit card rewards.

Elevated Cashback For The Category Of Your Choice

Bank of America started its press release by announcing that customers who open a Customized Cash Rewards card will earn 6% cashback in the category of their choice in the first year. This change took effect on June 1, 2025, and it’s a big jump from the previous 3% cashback rewards rate. 

The Unlimited Cash Rewards Card also received a buff, with the 1st-year cashback rate increasing from 1.5% to 2.0% on all purchases. There is no limit to how much cashback you can earn from this promotion. 

These upgrades make Bank of America’s credit cards more appealing to new customers and can help the bank win over additional business. These upgrades don’t impact people who had cards before June 1, 2025, but they are welcomed changes for anyone who’s looking for a new credit card.

The Welcome Bonus

The elevated cashback rewards aren’t the only benefit of Bank of America’s credit cards. Each card also comes with a $200 welcome bonus if you spend $1,000 or more on purchases in the first 90 days after the card is opened. This is a reasonable hurdle that only comes to approximately $333 per month. You can add some subscriptions to your card or make a big purchase to get there, but if you use your card for most purchases, you should easily reach $1,000 within three months.

The welcome bonus makes it easier to earn a lofty ROI for opening a credit card with Bank of America. However, you will only profit from a credit card if you pay off the balance in full at the end of each month. A lingering balance with a high interest rate can undo all of the benefits of high cashback rewards and the welcome bonus.

Regularly Review Your Credit Cards

Some cardholders prefer a single credit card that fulfills their needs and keeps it simple. However, you can get more welcome bonuses and cashback rewards if you optimize your credit cards. For instance, Bank of America has very competitive cashback rewards rates during the first year. Earning 6% cashback on the category of your choice is a big deal, but it drops to 3% after the first year.

Savvy credit card consumers will hunt for the next card and open a new card that offers elevated cashback and a good welcome bonus after they have held the Bank of America card for more than one year. Other credit card companies may rush to offer similar cashback rewards rates and welcome bonuses to compete with Bank of America’s upgrade.

This announcement is a major win for consumers who want to earn more money with their credit cards. It makes the landscape more competitive and incentivizes financial institutions to give people better options.

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