Description: The article is about bank of america credit card login. The author introduces the Bank of America cash rewards card,he shows some great features of this card. You can always earn 1% back on all of your everyday transactions,2% back at the grocery store and 3% back at gas stations.
Today we’re going to do a review of the Bank of America cash rewards card,that’s also known as the Bank of America one two three card,we’ll explain why. If you are new here,we’re all about how to maximize the value of your credit cards,how to get the most cash back and also how to travel for free,if that sounds interesting,let’s get started.
It’s called the one to three card because it earns 1% back on all of your everyday transactions,2% back at the grocery store and 3% back at gas stations. On the surface,this card is not too great,a lot of people think I don’t like it because I don’t talk about it,but the main reason is that it doesn’t scale well.
The 1% and 2% aren’t competitive because there are a lot of cards that give you 2% back on all of your transactions such as the city double cash card,the 3% back at gas stations also isn’t too great because there are cards that give you 5% back and I don’t have any annual fees such as the NRA card,it is a very good example of this and there’s no cap on gas,you can do it as much as you want and you’re still getting that 5% back.
Despite all this,I think it’s a good starter card and also a good foundation card. I had one of these cards until I did a product change,I had a better balanced rewards card. If you want to learn a bit more information on that,we have a few other articles talking about the better balanced rewards card,I don’t think the product change is possible but it is very advantageous when I use it.
The sign up bonus is 150 or 200 dollars after that minimum spends,it sounds good but there are other cards that effectively do the same thing. You will earn points that are redeemable for the same amounts,the difference is that if you want to redeem the points for more value,you can do that.
That involves getting other cards,instead of getting 150 dollars in value that could have been worth 300 dollars or maybe 200 dollars. Outside of the one two three categories,you’re not getting any other benefits,with a lot of other starter cards from other issuers,you still get something such as extended warranty,purchase protection and travel protection,but in bank of America,you’re not getting anything.
For example,discover it card has awesome purchase protection,it has one of the best price protections available. I don’t think it’s a bad starter card but I don’t think it does well in the mid-game,it might do well in the late game depending on how you want to manage your finances,that’s what we’re going to talk about now.
The big benefit of this card as well as Bank of America cards is that the more money you have in Bank of America or Merrill Lynch,the more that they’re going to multiply your perks. If you have less than $20,000 in assets of Bank of America,you’re going to earn at that one two three rate,if you have more than 20,000 and less than 50 dozens,you’ll be considered gold.
This means that you get a 25% bonus on your rewards meaning that 1% is 1.25,2 percent is 2.5 and 3 is 3.75. If you fall into this group,it still doesn’t make sense,but for the grocery stores as well as the wholesale clubs,it starts to get interesting.
With the wholesale clubs,it’s straight forward because even if you have the Costco card or Sam’s Club Card,you’re earning 2% and 1% percent respectively. It’s a logical move for 2.5 percent versus 2 percent or 1 percent. This means that if you spend more than $6,000 at the grocery store,the 1 2 3 card starts to come into play but otherwise the blue cash everyday card makes more sense.
Moving up one level,we have platinum,this means that you have between 50,000 and $100,000 in assets with Bank of America. The reward bonus is 50%,this makes gas at 4.5%,grocery store& wholesale clubs at 3% and everything else at 1.5%. It still doesn’t make any sense but grocery stores and wholesale clubs makes a lot of sense.
For grocery stores,since both carts are 3% you are impartial because it’s the same earning braid,it doesn’t make sense to get the blue cash every day card in this case,but this one is in caps. Finally,if you have more than a hundred thousand dollars in assets,you’re going to be considered as platinum honors.
This gives you a 75 percent bonus meaning that you get five point two five percent on gas,three point five percent in grocery stores and wholesale clubs and 1.75 percent on everything else. The only one that doesn’t make sense here is everything else because it’s still less than two percent,but for gas and grocery stores in wholesale clubs,it makes a ton of sense.
One big thing that you need to consider with this is that you need a lot of money of Bank of America,it might not be the most optimal for you. For gas,it’s five percent versus five point two five percent,that’s only a 0.25 percent difference so that’s not that material.
There is someone who spends a lot of money in these categories,your opportunity cost is going to be 2% because a lot of other cards have caps. This means that you’re earning 1.5% extra,if you’re a restaurant owner and you’re buying a hundred thousand dollars in food every single month,then it’s going to start adding up.
Some people are probably wondering that we should not worry about 1.5 percent especially if we’re spending a hundred thousand dollars in groceries every month,because over the span of a year,that’s going to be 1.2 million. 1.5 percent doesn’t sound significant.
For this specific example,the profit margin for restaurants is between three to five percent,this means that 1.5 percent is free money if you do fall into this. I think this card also makes sense if you’re someone who doesn’t want to deal with too many cards and you want to have one card,but if your won’t optimize a bit and have a few different cards,I think you can get a lot more value.
Overall,I don’t think it’s a bad card,I think it’s a good starter card,it’s a good foundation card to keep long-term,but in the middle especially if you don’t have the hunter cane assets,it doesn’t make too much sense.
Once you start hitting that point where you have a ton of assets and you still want to optimize for very specific categories,I think it’s fine. As a side note,if you are looking to apply for this card and you want to support our channel,we have referral links on our website,it helps if you apply through them.
I hope that was helpful and let me know if you have any questions. What are your thoughts on this card? Do you think it’s good? Do you think it’s bad? Let me know in the comments.