New BofA $0 AF up to 5.25% gas / 3.5% groceries / 1.75% everything else

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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Luxe
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New BofA $0 AF up to 5.25% gas / 3.5% groceries / 1.75% everything else

Postby Luxe » Sun Jul 06, 2014 1:39 am

BofA's new Preferred Rewards has a bonus system that adds up to 75% on top of basic 3/2/1 rewards. The catch is you need to hold enough cash or investments in BofA or Merrill Lynch.

There is also a travel version that gets you 1.5 pts * 75% = 2.625 pts/$ on ALL purchases. Very competitive with the CSP's 2% dining and travel only and tiny 7% dividend. The CSP's AF (which they've been increasing!) makes me a little mad lol.

The BoA offerings look quite competitive especially when you consider no AF or rotating categories...


rockyrock
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Postby rockyrock » Sun Jul 06, 2014 4:40 pm

Luxe wrote:BofA's new Preferred Rewards has a bonus system that adds up to 75% on top of basic 3/2/1 rewards. The catch is you need to hold enough cash or investments in BofA or Merrill Lynch.


How much is enough?
American Express (2005): Premier Rewards Gold & Blue Cash Preferred
Chase: Freedom & UA Club USAA: Signature Visa & American Express
Discover it Bank of Hawaii Hawaiian Airlines WEMC Synchrony Sam's MC
Navy FCU Platinum Visa Citi Double Cash & AT&T Access MC

Luxe
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Postby Luxe » Sun Jul 06, 2014 5:33 pm

rockyrock wrote:How much is enough?


$100k for the full 75% bonus, $50k for 50%, $20k for 25%. Can be investments like stocks and bonds which makes the offer worth consideration and you get free trades at the higher levels. Other banks have similar "loyalty/relationship" offers but often require you to hold USD.

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CarefulBuilder14
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Postby CarefulBuilder14 » Sun Jul 06, 2014 7:12 pm

A link with the full details would be good.

I suspect that you either need to:

1. Use Merrill Edge (I've never used it but have read the site is unintuitive and has very unreliable order execution - I have attached a link below to my opinions of brokerages I have used).

Or

2. Pay a percentage of assets under management. 1% of a $100k portfolio can cover annual fees on quite a few other cards.

I've heard BofA does offer some free trades to customers, but I don't know what other fees those customers might pay.

http://creditcardforum.com/lounge/9413-investments-etrade-4.html
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Luxe
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Postby Luxe » Sun Jul 06, 2014 7:58 pm

Here is a screenshot of the primary benefits: http://i.imgur.com/7yhTAJi.png. Credit card details here: http://promo.bankofamerica.com/preferredrewardsbonuscreditcard/

CarefulBuilder14 wrote:1. Use Merrill Edge (I've never used it but have read the site is unintuitive and has very unreliable order execution - I have attached a link below to my opinions of brokerages I have used).


Yes you have to use Merrill Edge. It's not the best site or mobile app but they are definitely getting better. Last year you couldn't even choose tax lots when selling shares but they fixed that and now you can see the cost basis for each lot. They just updated their website again so I believe they are on an upwards trajectory. Up to 100 free trades/month is also hard to beat... IB is the only trading platform that comes close and their interface is not friendly at all. ML Edge is not my favorite but it is alright for parking longer-term assets and the free trades are good. You could buy some Vanguard ETFs and the fees should be the same as on vanguard.com.

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CarefulBuilder14
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Postby CarefulBuilder14 » Sun Jul 06, 2014 10:40 pm

5.25% on gas and 3.5% on groceries is not that hard to beat. The bonus rewards apply to a combined spending of $1,500 on gas and groceries per quarter. It's comparable to Sallie Mae's $250 per month on each of gas and groceries (5% each). The nicest thing about the card is the 1.75% cash back on a Visa (for places that don't take Amex for Fidelity's 2%). The customer service at BofA is decent, from what I've heard.

Maybe I'll try out Merrill Edge with a small amount of money, but at least for me, this card would be somewhat superfluous with the other cards I'm currently considering.

I don't trade very often, so the 100 free trades per month do very little to interest me. For others that trade frequently, it would certainly be a useful feature.

...Typing that last sentence makes me feel like I'm suggesting a bar to alcoholics that serves cheap booze...
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

Paavo
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Postby Paavo » Mon Jul 07, 2014 2:39 am

Any idea when this new rewards program is opened in California?
The fine print on http://www.merrilledge.com/pricing says "starting Jun 28" but I have not been offered yet...



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