The BankAmericard Cash Rewards Credit Card is issued by Bank of America. If you’re looking to save on gas and groceries, this card is worth a look. And there’s also a pretty good sign-up bonus. If you spend $500 within 90 days of opening your account, you’ll earn a $100 bonus.
Okay, let’s hop right into the rewards. It’s a cash back credit card, but the rewards program is set up a little differently than the most popular cash back cards, like Chase Freedom and the Discover it Card.
You get 3 percent cash back at eligible gas merchants and 2 percent cash back at eligible grocery merchants on up to $1,500 per quarter. You earn the rewards automatically and you don’t have to sign up for them every quarter the way you do some other cash back cards. After you reach $1,500 in purchases, you get 1 percent on groceries and gas.
You also get 1 percent on all other purchases. Rewards are issued as a statement credit, a check, or an electronic deposit into your Bank of America checking or savings account. If you redeem your rewards directly into either your Bank of America checking or savings account, you earn a 10 percent cash rewards bonus. I think that’s kind of cool.
Rates and fees
You do need excellent credit to qualify for the BankAmericard Cash Rewards card. Like many rewards credit cards, the interest rate at the high end of the APR range isn’t a picnic at 22.99 percent. But the APR can go as low as 12.99 percent if you really have excellent credit.
But if you’re using a rewards card, you aren’t planning to carry a balance anyway, right? Right? Okay, just checking! You have a 25-day grace period with this BankAmericard credit card, so that’s plenty of time to get in your payment.
APR: You get a zero percent intro APR for the first 12 statement closing dates. After that, you get a variable rate between 12.99 percent and 22.99 percent, based on your creditworthiness.
Balance transfers: You get a zero percent intro APR for the first 12 statement closing dates. After that, you get a variable rate between 12.99 percent and 22.99 percent, based on your creditworthiness. The transfer fee is 3 percent.
APR for cash advances: You get a variable 22.99 percent APR for direct deposit and check cash advances. But you get a variable 24.99 percent APR for bank cash advances. Plus, there’s a 3 percent transaction fee. I’ll make it easy for you. Interest on a cash advance begins immediately, so just don’t do this. Ever.
Penalty rate: A whopping 29.99 percent variable APR. This may be applied if you make a late payment. Um, don’t make a late payment. Ever.
The good news is that Bank of America doesn’t apply a penalty rate to an existing balance. There are circumstances where they can legally do this. For instance, if you’re more than 60 days late with a payment. But I’ve been told by a BoA spokesperson that they’ve chosen not to take advantage of that.
Annual fee: None.
Foreign transaction fees: They’re 3 percent.
Purchase transaction fee: This is charged if you use your BankAmericard credit card to purchase a wire transfer from a non-financial institution. The fee is $10 or 5 percent of the amount of each transaction, whichever is greater.
This might be a situation where you use your card to purchase a wire transfer to send to a relative. Instead of using a bank, you use Western Union. This probably won’t come up, but I want you to be aware of the fee.
The bottom line
Overall, the BankAmericard Cash Rewards card gets a thumbs-up from me. It’s a pretty good deal if you want cash back on gas. But if you’re really interested in the grocery rewards, then you should also take a look at the Blue Cash Everyday Card from American Express. With the Blue Cash Everyday, you get 3 percent on groceries on up to $6,000 per year, then 1 percent after that.
Here’s an example of the savings: If you spend $7,000 a year on groceries, with the BankAmericard cash rewards card, you earn $130. With the Blue Cash Everyday card, you earn $190.
And like the BankAmericard cash rewards card, there’s no annual fee. You can read my review of the Blue Cash Everyday card right here.
Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully.