Bank of America Raises First-Year Rewards Offerings on Two Credit Cards

Bank of America is ramping up the rewards offerings on two of its consumer credit cards to provide more value to people during their first year after they open the cards.

The Bank of America Customized Cash Rewards Credit Card will provide people with the opportunity to earn 6% cash back on purchases they make in the category of their choice during their first year of owning the card. That number certainly jumped out at me as an incentive to open the card, and I’d venture to guess that others will feel the same way.

For comparison, the Customized Cash Rewards card currently offers 3% cash back on the category of your choosing. I know, you’re probably thinking that the categories Bank of America offers for enhanced rewards are overly restrictive, but they really aren’t. 

People of all interests can likely find products or services that appeal to them among the Customized Cash Rewards card’s categories, which include dining, drug stores and pharmacies, gas and EV charging stations, and online shopping. 

Bank of America is also boosting the rewards earnings potential for people who open an Unlimited Cash Rewards card. That card currently lets people earn 1.5% on all purchases, but new cardholders can earn 2% on purchases they make during the first year after they open the card. 

Based on the card’s name, it probably doesn’t come as a surprise to you that there’s no limit on the amount of cash back you can earn with the Unlimited Cash Rewards card.

The elevated rewards that Bank of America is extending to people through its Customized Cash Rewards and Unlimited Cash Rewards cards will be available beginning June 1.

Having options in life is always nice, and Bank of America is capitalizing on that notion by offering multiple new rewards programs that suit people’s spending practices. 

Lora Monfared, Head of Consumer Card Products at Bank of America, commented on the bank’s strategy of providing people with choices in a press release announcing the boosted rewards packages.

“Whether they prefer to maximize rewards in a specific spending category or earn a flat rate on all purchases, our cash rewards cards provide value to stretch their dollars further,” Monfared said.

Consumers can apply for the card with features that best align with their spending habits.

People may be on the fence about opening a Customized Cash Rewards card due to the category selection for the rewards. But Bank of America puts flexibility in a cardholder’s hands by allowing them to switch categories once a month.

If you have a lengthy road trip coming up, you may want to think about selecting the gas category to stretch the rewards you earn with the card for the time being. Allowing people to take charge of their rewards earnings can create more loyalty between a credit card issuer and its customers.

Bank of America further sweetens its latest card offerings through a hefty welcome bonus. People who open a new Customized Cash Rewards or an Unlimited Cash Rewards card can earn $200 when they make at least $1,000 in purchases with their card within 90 days after opening it.

With new trade tariffs threatening to raise the prices people pay on a variety of items, 2025 is shaping up to be a challenging year for consumers. But being rewarded for credit card spend can lessen some of the impact of inflation.

“We are committed to providing our clients with credit cards designed to help them make the most of their everyday spending — now with an extra boost to help navigate the year ahead,” Monfared said.