Bank of America is getting into the high end rewards credit card battle, rolling out the Bank of America Premium Rewards credit card in September.
According to a news report in The Wall Street Journal the new credit card will give card holders reward points two points for every dollar they spend on travel and dining and one and a half points per every dollar spent on everything outside of those two categories. There will be no cap on the amount of reward points a credit card user can earn, which is a similar practice at both JPMorgan and Citigroup.
For Bank of America customers who have $20,000 or more in a checking, savings or investment account with the company, they will earn more points. Those with $20,000 to $50,000 get 2.5 points for every dollar spent on travel and dining and 1.875 points on every other purchase. Customers with $50,000 to $100,000 in a Bank of America account earn 3 points for every dollar spent on travel and dining and 2.25 points for all other purchases, reported the Wall Street Journal.
In addition to the generous reward points, Bank of America will offer a signup bonus of 50,000 points to customers who spend $3,000 in the first three months of opening the Bank of America Premium Rewards credit card account. The Wall Street Journal reported that among the credit card companies, spending $3,000 to get 50,000 rewards points is the lowest spending requirement of the premium rewards credit cards.
The bank is aiming to compete against a bevy of credit cards, including airline and hotel co-branded ones, the bank told the Wall Street Journal. With the launch in the fall, Bank of America is joining JPMorgan Chase and American Express in offering high end credit cards with lots of incentives to spend. These cards are highly coveted by millennials and big spenders who use their rewards points for free trips and free flights.