Is Bank Of America Cash Rewards Better Than Travel Rewards? We Break It Down
Choosing between Bank of America Cash Rewards and Travel Rewards can feel like picking between a steady paycheck and an all-expenses-paid trip. If you’re constantly debating between practical everyday rewards and that urge to travel, you’re in the right place. Let’s break down these cards so you can decide which aligns with your lifestyle goals.
| Feature | Bank of America Cash Rewards | Bank of America Travel Rewards |
|---|---|---|
| Annual Fee | $0 | $0 |
| Reward Rate | 3% on chosen category, 2% at grocery stores, 1% on everything else | 1.5 points per dollar on all purchases |
| Introductory Offer | $200 online cash rewards bonus after $1,000 in purchases in first 90 days | 25,000 online bonus points after $1,000 in purchases in first 90 days |
| Foreign Transaction Fees | ✓ 3% | ✗ |
| Redemption Options | Cash back, statement credit, direct deposit | Travel purchases, statement credit |
| Preferred Rewards Bonus | Up to 75% more cash back | Up to 75% more points |
✅ bank of america cash rewards Pros
- Customizable 3% cash back category
- No annual fee
- Strong for groceries with 2% back
❌ bank of america cash rewards Cons
- 3% foreign transaction fee
- Limited travel benefits
✅ travel rewards Pros
- No foreign transaction fees
- Flat 1.5 points on all purchases
- Flexible travel redemption
❌ travel rewards Cons
- Lower reward rate for non-travel purchases
- Points can be less versatile than cash back
Performance on Everyday Purchases
Bank of America Cash Rewards shines if your spending is primarily domestic and focused on specific categories like groceries or gas. The ability to choose a 3% cash back category is killer for maximizing return in your biggest spending area. Travel Rewards, on the other hand, offers a flat-rate earning structure, which is simpler but may not yield as high rewards unless you’re consistently spending abroad or redeeming for travel.
Travel Benefits and Fees
If you travel internationally, Travel Rewards is the clear winner with no foreign transaction fees, making it a no-brainer for overseas spending. Cash Rewards charges a 3% fee on foreign transactions, which can eat into your savings quickly. When it comes to travel redemptions, Travel Rewards again takes the cake with flexible points that can be applied to a variety of travel purchases.
Value of Redemption Options
Cash Rewards offers cash back which is always a straightforward and versatile option. You can take it as a statement credit or direct deposit, making it easy to use. Travel Rewards points are best when used for travel redemptions, as their value can be maximized in this way. However, if you’re not a frequent traveler, you might find it limiting compared to the cold hard cash you get from Cash Rewards.
Watch out for the fine print on Preferred Rewards bonuses; not everyone qualifies, and it requires a significant relationship with Bank of America. Also, if you’re not strategic about spending in the chosen 3% category with Cash Rewards, you might not see the benefits you expect.
Our Final Verdict: Which One Should You Buy?
If you’re the type who loves optimizing every purchase for cash back and spends a lot on groceries or gas, go with the Bank of America Cash Rewards. It’s perfect for the domestic spender who wants flexibility and straightforward rewards. However, if you’re a wanderlust-driven individual who spends frequently abroad or values travel redemptions, the Travel Rewards card is your ticket to maximizing points without worrying about pesky foreign fees.
Do these cards have any annual fees?
Both the Bank of America Cash Rewards and Travel Rewards cards have no annual fees, making them accessible for all types of users.
Can I change the 3% category on the Cash Rewards card?
Yes, you can change your 3% cash back category each month, allowing flexibility in optimizing your rewards based on your spending habits.
Are the rewards on these cards worth it without Preferred Rewards bonuses?
Yes, even without the Preferred Rewards bonuses, both cards offer competitive rewards structures that can suit different spending profiles effectively.
