Bank of America is launching a new Unlimited Cash Rewards card which has no annual fee and earns an unlimited 1.5% cashback on all purchases. We don’t know much about the new card yet, but it sounds like it’ll be everything the same as the existing Travel Rewards card, just as cashback instead of points. The email makes it clear that Preferred Rewards Platinum Honors members will earn 2.62% with this.
we don’t have confirmation of this as this is a brand new card.
The card is not yet available for signup and is being targeted to existing customers as a product change option along with a $200 signup bonus. We wrote about this $200 product change offer in a separate post.
This is great news since it removes the annoyance of having to redeem the rewards against travel purchases and creates a straight 2.62% cashback card with no annual fee.
A lot of people carry the Premium Rewards card, with its $95 annual fee, specifically to avoid the annoyance of having to redeem against travel. There are other advantages of the Premium Rewards, including $100 airline incidental credit and 2x (3.5x) on travel & dining purchases. But if you don’t care for those benefits you can simply get the Unlimited Cash Rewards and then you won’t need the Premium Rewards card anymore.
Hat tip to an anonymous reader