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Getting high cash-back returns usually requires paying a steep annual fee. However, there is a way you can earn significant cash back on a no-annual-fee card. Let's show you how to earn up to 3.5% cash back on all purchases with no annual fee with Bank of America by using the Bank of America® Unlimited Cash Rewards credit card.
- Earn 2% cash back on purchases for the first year from account opening
- Earn unlimited 1.5% cash back on all purchases after year one
Bank of America Unlimited Cash Card
To potentially unlock 3.5% cash back on every purchase, you first need to obtain a Bank of America Unlimited Cash Card. On top of a $0 annual fee, the card earns 2% cash back for the first year, then an unlimited 1.5% cash back on all purchases thereafter.
On its own, this is a decent card. Very simple, easy to use, and easy to understand what you are earning. It has a decent welcome offer that is easy to earn, as well: a $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening, plus 2% cash back on purchases for the first year from account opening.
That's solid, but hold on a second.
Isn't the Citi Double Cash® Card Better?
You might be asking why you would want this card when you can do better long term by holding the Citi Double Cash. The Citi Double Cash earns 2% cash back on all purchases — 1% when you buy plus 1% as you pay. That's made the Double Cash one of the best no-annual-fee cash-back cards to have.
Related: Citi Double Cash Card Review
But with a little extra work, you could earn even more rewards with the Bank of America Unlimited Cash Card.
How to Boost Your Bank of America Card Earnings
Most likely, you have a checking or a savings account. Perhaps you have investment or retirement accounts. You can take these funds and put them to work to increase your cash-back rewards by moving these assets to Bank of America. While you're at it, you can most likely earn new checking, savings, and investment account bonuses, depending on just how much money you move into these accounts. The more you move, the more you earn.
This is where the Bank of America Preferred Rewards program comes into play. One simple visit or call with a Bank of America banker can unlock massive earning potential.

Bank of America Preferred Rewards Program
The Bank of America Preferred Rewards program rewards customers with various bonuses and discounts based on the amount of money they keep in Bank of America or Merrill Lynch accounts. You can deposit funds or transfer stocks and other brokerage assets to fund your accounts.
Even better, Bank of America will often offer bonuses for opening new accounts. Through these bonuses, Bank of America gives customers a tangible cash-back reward incentive to earn their banking business. It's worth noting that the Preferred Rewards program also applies to travel rewards cards like the Bank of America® Travel Rewards credit card, allowing you to earn additional travel rewards within the same program.
Bank of America Preferred Rewards program tiers
The Bank of America Preferred Rewards program has four tiers: Gold, Platinum, Platinum Honors, and Diamond. Your tier is determined by your three-month combined average daily balance. This total consists of your balance with all checking, savings, and investment accounts.
It is worth noting that you will not automatically be put into a tier right upon depositing funds in new accounts. Also, your tier can change if your balances dip below the threshold needed to maintain your current tier. Typically, your banker can speed this process along so that it doesn't take a full three months to be placed into your tier.
As you move into higher tiers, you get better rates, boosters, and discounts. This includes boosted rates on savings accounts, discounted rates on home equity lines of credit, auto loan applications, foreign currency exchanges, and Merrill Guided Investing, as well as reduced origination fees on new purchase or refinance mortgages and waived banking fees.
Credit card bonus multipliers
Perhaps the most useful Preferred Rewards benefit is the bonus multiplier on all eligible Bank of America credit cards, effectively increasing your earnings on all purchases. Let's look at the amount of funds needed for each tier, as well as the bonus awarded on your purchases.
- Gold: Three-month combined average daily balance between $20k and $50k, providing a 25% bonus on all eligible Bank of America credit card purchases.
- Platinum: Three-month combined average daily balance between $50k and $100k, providing a 50% bonus on credit card earnings.
- Platinum Honors: Three-month combined average daily balance between $100k and $1 million, providing a 75% rewards bonus
- Diamond: Three-month combined average daily balance of $1 million or higher. Bonus earnings are the same as the Platinum Honors tier.
As you can see, you'll want to get to the Platinum Honors tier to maximize your earnings.
Earning 3.5% Cash Back on the Bank of America Unlimited Cash Card for the first year
By pairing the Bank of America Unlimited Cash Card earning rate and the Bank of America Preferred Rewards program, you can earn 2.5% cash back on all purchases at the Gold tier. With Platinum Honors or Diamond, you could earn a whopping 3.5% cash back on every purchase. The earning rate drops after the first year from 2% to 1.5%, meaning the additional 75% would give you a 2.625% return over the long term.
Thus, if you can keep $100,000 or more in funds and assets deposited with Bank of America and Merrill Lynch, all of your Bank of America credit cards will have supercharged earning rates on purchases. You could earn a whopping 3.5% cash back on all purchases with the Bank of America Unlimited Cash Card. That makes it far superior to the Citi Double Cash.
For no annual fee, that is about as good as it gets in terms of a return on spending for everyday spending outside bonus categories offered by other credit cards. In fact, it's a better rate of return than you'll find on most cards with annual fees. If you prefer the simplicity of earning cash back and have significant everyday purchases, you would do very well keeping it with Bank of America and Merrill Lynch to unlock these top earning rates.
Related: Bank of America Unlimited Cash Rewards Credit Card Review
Bottom Line
By moving your bank assets to Bank of America, your checking account balance can increase your credit card's earning rates. It's hard to beat 3.5% cash back on everyday purchases with the Bank of America Unlimited Cash Card — especially since this card doesn't have an annual fee.
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