Strong value sits behind the BOA Customized Cash Rewards Card when monthly category control meets disciplined spending.
First-year enhancements now double the headline category to 6%, while Bank of America Preferred Rewards can push long-term rates materially higher for qualifying clients.
Rotating the category, respecting the quarterly cap, and aligning redemptions with Preferred Rewards produce the best results.
How the 3% Choice Category Works in 2025
Category control lives at the center of this product. Six eligible groups, dining; gas and EV charging stations; online shopping including cable, internet, phone, and streaming; travel; drugstores and pharmacies; home improvement and furnishings, can be switched once per calendar month in Online or Mobile Banking.
During the first 12 months for new accounts opened June 1, 2025 or later, the 3% category is doubled to 6%; grocery stores and wholesale clubs earn 2% in parallel, and everything else earns 1%.
Quarterly Limits Matter
The 6%/2% rates apply to a combined $2,500 each quarter across the choice category plus grocery and wholesale club purchases; any spend above that threshold earns 1% until the next quarter resets.
Category changes apply prospectively, so scheduling a switch before large purchases avoids missed upside.
BOA Customized Cash Rewards Card at a glance
A short table highlights the headline terms many readers check first. Rates and fees can change; always confirm during application.
| Item | Snapshot (as of Oct 31, 2025) |
| Annual fee | $0 |
| First-year offer | 6% in the category of your choice; 2% at grocery stores and wholesale clubs; 1% elsewhere (within quarterly cap) |
| Ongoing earn after year one | 3% category of your choice; 2% at grocery stores and wholesale clubs; 1% elsewhere (within quarterly cap) |
| Cap | $2,500 combined per quarter across category + grocery/wholesale; 1% thereafter |
| Welcome bonus & APR | Typical $200 online cash rewards bonus; 0% intro APR for 15 billing cycles on purchases and select balance transfers, then variable APR applies |
Monthly Playbook to Maximize Earnings
Clear planning beats guesswork when caps and categories interact. Set a simple cadence that pairs predictable bills with the right month.
- Lock online shopping during heavy e-commerce periods or when prepaying annual streaming, cable, or phone plans.
- Flip to home improvement and furnishings ahead of renovation purchases, appliances, or furniture deliveries.
- Use gas and EV charging for road-trip months, then move to travel for flights or hotels already priced.
- Reserve dining for weeks filled with celebrations or work travel where restaurant spend spikes.
- Keep running totals against the quarterly spending cap so high-value transactions land before the limit.
Quarterly Spending Cap Math: What $2,500 Means
Cap management determines your realized rate. Consider a simple split: $1,500 in the first-year 6% category and $1,000 at grocery stores and wholesale clubs within a quarter generates $90 from the category and $20 from groceries under the promotional structure, then resets the following quarter.
Concentrating the majority of capped spend in the 6% bucket delivers the highest effective return without forcing impractical purchasing.
After month 12, the same pattern still works, only the headline rate drops back to 3% while grocery and wholesale remain 2%, subject to the same $2,500 combined limit.
Preferred Rewards: The Real Accelerator
Preferred Rewards increases earned cash back by 25%, 50%, or 75% based on combined balances at Bank of America and Merrill, applied on top of base earning.
Enrollment requires an eligible checking account and a three-month combined average daily balance that meets the tier threshold.
The bonus does not apply to the first-year promotional 6%/2% earn; it applies after promotions end and on standard earn going forward.
| Preferred Rewards tier | Combined balance requirement | Bonus on card rewards | Effective long-term rates on this card* |
| None | N/A | 0% | 3% category / 2% grocery & wholesale / 1% other |
| Gold | $20,000–$49,999 | +25% | 3.75% / 2.5% / 1.25% |
| Platinum | $50,000–$99,999 | +50% | 4.5% / 3% / 1.5% |
| Platinum Honors (and higher) | $100,000+ | +75% | 5.25% / 3.5% / 1.75% |
Rates, Fees, and Welcome Terms to Note
Cost control remains favorable for everyday use.
The card carries no annual fee, and new applicants typically see a $200 online cash rewards bonus after a modest minimum spend, alongside a 0% intro APR for 15 billing cycles on purchases and qualifying balance transfers made within 60 days; a variable APR then applies.
Industry references and issuer materials consistently reflect these terms in 2025, though the exact APR range is profile-dependent.
Foreign Transaction Fee
International usage is less attractive. A foreign transaction fee generally applies on this product; top-tier industry coverage lists 3%, and Bank of America’s sample agreement confirms a 0%–3% range across consumer cards depending on product.
Frequent travelers typically pivot to no-FTF cards to avoid needless leakage on overseas purchases.
Promotional stacking has limits. Bank of America states that the Preferred Rewards bonus does not apply to account-opening or first-year promotional bonuses, which keeps the 6% and 2% first-year earn separate from the relationship multiplier.
Is the BOA Customized Cash Rewards Card right for you?
Ideal use cases center on controlled monthly spend and domestic categories. Households or individuals able to funnel predictable purchases into the 6% first-year category, while maintaining steady grocery and wholesale club activity, extract strong returns without fees.
Clients who already qualify for Bank of America Preferred Rewards transform the card into a durable long-term earner once the first-year window closes.
Conversely, frequent international travelers should consider a no-FTF product such as Bank of America Travel Rewards for overseas transactions, then keep the Customized Cash Rewards for domestic category months.
Redemption Basics and Quick Wins
Redemptions remain straightforward and flexible, with automation available for set-and-forget workflows.
- Direct deposit to a Bank of America checking or savings account posts cleanly and pairs well with budgeting.
- Statement credit reduces the balance without extra steps and suits one-card households.
- Automatic redemption triggers at a chosen threshold, saving manual effort during busy months.
- Preferred Rewards boosts accrue on earning, so redemption choice doesn’t change the bonus math.
- Quarterly category reviews, followed by scheduled category changes in the app, prevent missed opportunities.
Practical Scenarios to Model During Year One
Impact clarity improves when numbers match planned expenses. A renter paying $180 per month for internet and streaming can lock online shopping for that month and combine it with a $900 laptop purchase, placing $1,080 under the 6% umbrella.
A homeowner purchasing $1,500 in tools and fixtures in a different month can switch to home improvement and furnishings ahead of checkout.
Each scenario respects the quarterly $2,500 ceiling, while leaving room for up to $1,000 of grocery or wholesale club purchases at 2% within the same quarter. After the promotional year, the identical playbook continues at 3%/2%.
Alternatives Worth a Look
Flat-rate simplicity may suit bigger, uncapped spend.
Wells Fargo Active Cash offers 2% back on purchases with no categories to manage, helpful once quarterly caps feel restrictive; international purchases still incur a 3% foreign transaction fee on that card, so it remains best for domestic use.
For BoA loyalists traveling abroad, Bank of America Travel Rewards removes foreign transaction fees and earns fixed-rate points on all purchases, making it a smoother companion for international trips.
Conclusion
Strong first-year economics and flexible category control make this card compelling for everyday budgets that can be routed into the promotional 6% lane.
Long-term strength improves for Preferred Rewards members, who can elevate the 3% category to 5.25% after year one while keeping a $0 annual fee.
Set the category proactively, track progress against the quarterly cap, and redeem via direct deposit or statement credit to streamline outcomes. For frequent international transactions, pair the card with a no-FTF option to avoid erosion from foreign transaction fees.
