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[Originally published in 2014. Updated on August 23, 2023. Links are NOT affiliate links. We don’t get paid if you apply for any credit card.]
I’ve a brokerage account at Merrill Edge and a free checking account at Financial institution of America. I certified for Financial institution of America’s Most well-liked Rewards program after three months. Then I added a Financial institution of America Journey Rewards card to the Most well-liked Rewards program.
75% Bonus from Most well-liked Rewards
On a stand-alone foundation, this bank card isn’t that particular. It provides 1.5% rewards on each buy with no caps or particular classes. It has no annual payment and no international transaction payment. There’s a small sign-up bonus. The Most well-liked Rewards program makes it a lot nicer.
While you enroll in Financial institution of America’s Most well-liked Rewards program, you get a lift in bank card rewards. $100k in belongings held at Merrill Edge places you within the Platinum Honor tier, which supplies you a 75% bonus on bank card rewards. 1.5% rewards with no caps on the whole lot on the base degree then turns into 2.625% rewards on the whole lot within the Platinum Honor tier.
For instance, a $71.30 buy earned 187 reward factors value $1.87. That’s 2.625%. You get the 75% bonus after you qualify for the Platinum Honor tier in Most well-liked Rewards. In case your Financial institution of America checking account is new, it has to undergo three month-ends earlier than you qualify.
This Financial institution of America card with a 75% bonus provides extra rewards than different 2%-rewards playing cards such because the Constancy Visa or the Citi Double Money card.
Maintain ETFs at Merrill Edge
One of the simplest ways to qualify for the Platinum Honor tier within the Most well-liked Rewards program is by transferring $100,000 value of investments to Merrill Edge and linking the Merrill Edge accounts to the Financial institution of America checking account. The $100,000 doesn’t have to take a seat in money. It may be shares, bonds, mutual funds, or ETFs held in IRAs or common brokerage accounts.
You don’t need to promote your investments and set off capital positive aspects once you switch to Merrill Edge. Present investments will be transferred “in type.” Merrill Edge typically provides a bonus to your switch. Google “Merrill Edge switch bonus” for the present provide.
You don’t need to commerce within the Merrill Edge accounts both should you favor to make use of a special dealer. Simply holding $100,000 value of an S&P 500 ETF in an IRA and organising free automated dividend reinvestment will do. Merrill Edge doesn’t cost upkeep or inactivity charges.
In case you do use Merrill Edge to commerce, Merrill Edge fees zero fee on on-line inventory and ETF trades.
Redeem In opposition to Previous Journey and Eating Purchases
The reward factors from the Journey Rewards card are value probably the most once you redeem them as a press release credit score towards journey and eating purchases made within the earlier 12 months (100 factors = $1). So long as you cost some journey and eating bills on this card on occasion, you’ve got loads of alternatives to redeem the factors.
These fees all counted as journey in my account:
- Airways (each tickets and baggage charges)
- Accommodations
- Airbnb
- Automobile leases
- Uber and Lyft
- Transit (prepare, bus, ferry)
- Parking and tolls
- Ski passes
Eating consists of bars, eating places, and quick meals.
The minimal variety of factors for redemption is 2,500 factors (earned by spending $952 at 2.625%). You may have one yr from the date of a journey or eating cost to redeem factors towards it. You possibly can redeem factors towards the identical cost a number of instances till the cost is totally coated by factors redemption.
Don’t Journey or Eat Out?
In case you don’t journey or eat out and due to this fact could have problem discovering journey and eating fees to redeem rewards towards, Financial institution of America additionally affords an Limitless Money Rewards card. Every little thing works the identical because the Journey Rewards card besides that the rewards are given in money and it has a 3% international transaction payment. The international transaction payment doesn’t matter a lot once you don’t journey.
| Limitless Money Rewards | Journey Rewards | |
|---|---|---|
| Annual Payment | None | None |
| Overseas Transaction Payment | 3% | None |
| Rewards on the whole lot | 1.5% base 2.625% with 75% bonus |
1.5% base 2.625% with 75% bonus |
| Redeem rewards | Cashback | Assertion credit score towards journey and eating fees within the final 12 months |
Journey or Eat Out quite a bit?
In case you journey or eat out quite a bit, Financial institution of America additionally affords a Premium Rewards card that has an annual payment however provides greater rewards on journey and eating fees.
| Journey Rewards | Premium Rewards | |
|---|---|---|
| Annual Payment | None | $95 |
| Overseas Transaction Payment | None | None |
| Airline incidental assertion credit score | None | as much as $100/yr |
| TSA PreCheck or World Entry payment credit score | None | as much as $100 each 4 years |
| Rewards on journey and eating fees | 1.5% base 2.625% with 75% bonus |
2% base 3.5% with 75% bonus |
| Rewards on the whole lot else | 1.5% base 2.625% with 75% bonus |
1.5% base 2.625% with 75% bonus |
| Redeem rewards | Assertion credit score towards journey and eating fees within the final 12 months | Cashback |
You’ll get extra from the Premium Rewards card to offset the annual payment should you pay airline baggage charges or cost a very good quantity for journey and eating.
Choose One
The Journey Rewards card and its two sister playing cards work equally. Which one works the very best comes all the way down to how a lot you journey and eat out.
Autopay Full Steadiness
It’s not apparent the way you arrange for robotically paying the total stability each month on Financial institution of America bank cards. Please comply with the steps in Set Up Autopay On Financial institution of America Credit score Card.
Free Credit score Rating
Financial institution of America affords month-to-month free FICO credit score scores from TransUnion when you have a bank card from them.
***
I exploit the Financial institution of America Journey Rewards card for just about the whole lot. It really works to its full potential once you even have Merrill Edge and Financial institution of America accounts and also you make it to the Platinum Honor tier within the Most well-liked Rewards program.
I like this card as a result of it’s useless easy. There aren’t any particular classes to trace and no complicated level transfers. I naturally have some journey and eating fees to redeem rewards towards once I cost just about the whole lot to this card. In case you don’t journey or eat out a lot or should you journey and eat out quite a bit, a sister card from the identical financial institution works higher.
Say No To Administration Charges
In case you are paying an advisor a proportion of your belongings, you’re paying 5-10x an excessive amount of. Learn to discover an impartial advisor, pay for recommendation, and solely the recommendation.
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