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BofA Boosts Cash Back for New Cash Rewards Credit Cardholders

1. Bank of America enhances cash back offers for new credit cardholders. 2. Customized Cash Rewards card offers 6% cash back; Unlimited Cash Rewards offers 2%. 3. No limit on cash back earnings; welcome bonuses included. 4. Increased cash back may attract more customers, boosting revenue. 5. Bank of America serves millions globally with a range of financial services.

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FAQ

Why Bullish?

The enhanced cash back offerings may increase customer engagement and client retention, potentially driving revenue growth. Historical instances show that such promotions often lead to increased card usage and higher revenues for banks.

How important is it?

The news about enhanced rewards allows Bank of America to be more competitive in the credit card market, a critical component of their business. It positions BAC favorably among consumers looking for value, likely leading to increased market share.

Why Short Term?

Initial customer acquisition and spending are expected to materialize quickly, especially with the first-year cash back boost. Examples from other banks have shown immediate revenue impacts following promotional offers.

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Coming June 1, New Customized Cash Rewards Cardholders Will Earn 6% Cash Back and New Unlimited Cash Rewards Cardholders Will Earn 2% Cash Back on All Purchases for the First 12 Months, /PRNewswire/ -- Bank of America today announced enhanced cash back rewards offerings for new cardholders of the Customized Cash Rewards credit card and Unlimited Cash Rewards credit card during their first year, delivering even greater value to clients. Bank of America's Customized Cash Rewards and Unlimited Cash Rewards cards available June 1, 2025 Available nationwide as of June 1, clients who open a Customized Cash Rewards card will earn 6% cash back in the category of their choice (up from 3%) during the first year. Clients who open an Unlimited Cash Rewards card will earn 2% cash back (up from 1.5%) on all purchases during the first year, with no limit to the amount of cash back they can earn. "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," said Lora Monfared, Head of Consumer Card Products at Bank of America. "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." Welcome Bonus In addition to the enhanced cash back, clients opening a Customized Cash Rewards card or a Unlimited Cash Rewards card will also receive a $200 welcome bonus after spending $1,000 or more on purchases in the first 90 days after the card is opened.Customized Cash Rewards Offer Details New cardholders can take advantage of the following features: Double Cash Back in the First Year: Cardholders earn 6% cash back for the first year from account opening in the category of their choice: gas & EV charging stations; online shopping (including cable, internet, phone plans and streaming); dining; travel; drug stores; home improvement and furnishings, 2% at grocery stores and wholesale clubs, and 1% on all other purchases.    After the first-year bonus offer ends, cardholders will earn 3% cash back on purchases in their category of choice. Cardholders earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, cardholders will earn 3% and 2% cash back on these purchases up to the quarterly maximum – and cash rewards don't expire as long as the account remains open. The category of choice can be switched once per month. Unlimited Cash Rewards Offer Details New cardholders can take advantage of the following features: Unlimited 2% Cash Back in the First Year: Earn unlimited 2% cash back on all purchases for the first year from account opening. After the first-year bonus offer ends, cardholders will earn an unlimited 1.5% on all purchases. No limit on cash back earned and no expiration on rewards as long as the account remains open. Bank of AmericaBank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,700 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.Reporters may contact:Don Vecchiarello, Bank of America   Phone: 1.980.387.4899 [email protected]SOURCE Bank of America Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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