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Bank of America (BAC) Expands Credit Card Cashback Rewards

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Bank of America (BAC - Free Report) is taking customer-centric credit card rewards to a new level with its latest announcement. The bank's Customized Cash Rewards credit card has been upgraded to offer even more ways for cardholders to earn cashback, catering to their evolving spending habits.

This credit card's standout feature is its flexibility in selecting cashback categories. With the recent expansion, cardholders can now earn a generous 3% cash back on select categories. The expansion focuses on two widely relevant areas: gas and online shopping.

Under the gas category, BAC cardholders can now earn 3% cash back not only at traditional gas stations but also at electric vehicle (EV) charging stations. This adjustment comes as a response to the growing trend of EV adoption, with Bank of America reporting a staggering 44% growth in EV charging transactions during the first half of 2023.

Bank of America’s Customized Cash Rewards card continues to impress with its array of cashback categories. Cardholders can select their primary rewards category from the options that include gas & EV charging stations, online shopping, cable, streaming, Internet & phone plans, dining, travel, drug stores & pharmacies and home improvement & furnishings. This flexibility allows consumers to align their rewards with their specific spending patterns, ultimately maximizing their benefits from the card.

For those enrolled in the Bank of America Preferred Rewards program, the rewards will be further amplified. Members can earn an additional 25% to 75% more cashback on every purchase made with the Customized Cash Rewards card, depending on their rewards tier. This means the 3% cashback can potentially increase to a remarkable 5.25%.

Bank of America's Customized Cash Rewards credit card's enhanced features respond adeptly to modern spending trends. The bank is committed to aligning its products with customers' evolving needs.

Shares of this Zacks Rank #3 (Hold) company have lost 14.2% so far this year compared with the industry’s fall of 4.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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Many banks are taking similar steps to come out with new products and services that align with client requirements.

Earlier this month, Comerica Incorporated (CMA - Free Report) launched Comerica Maximize, an interest-bearing checking account and competitive cash management solutions for qualifying small business and business banking customers. The new package enables them to earn interest income while growing and protecting their businesses with essential treasury services.

Comerica Maximize has been uniquely designed to optimize customers’ funds and save time.

There are several benefits to enrolling in this packaged product. It enables customers to deposit more funds. With Comerica Maximize checking account, Earnings Credit Allowance will be received by customers. This will offset monthly fees and after paying fees, customers can earn a competitive tier-based interest rate on any remaining balance.

Further, in July, Citigroup (C - Free Report) launched a platform — CitiDirect Commercial Banking — which offers a single-entry point digital platform to cater to the needs of Citi Commercial Bank clients. This initiative is part of C’s significant strategic investment plan to meet the growing global needs of these clients.

Particularly, CitiDirect Commercial Banking platform brings together the bank’s global products and services into a single digital platform. This provides clients with a comprehensive view of their Citi banking relationship across Cash, Loans, Trade, FX, Servicing and Onboarding.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.


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