Customers at Bank of America now have an incentive to keep more of their money with the bank.
Bank of America’s new Preferred Rewards program is open to people who keep a combined balance of at least $20,000 across their Bank of America checking and savings accounts and their Merrill Edge investment accounts. Customers’ average three-month balance between all accounts will be used to determine eligibility for the program. There are three levels of Preferred Rewards membership: Gold, Platinum and Platinum Honors.
The program is free of charge, and replaces the bank’s existing Platinum Privileges program. When customers enroll in Preferred Rewards, their Platinum Privileges benefits will shift over to the new program.
More people get a chance to participate in the loyalty program
The Platinum Privileges program’s minimum balance requirement of $50,000 was out of reach for many Bank of America customers, prompting the company to create this new loyalty program, which is accessible to more of their customers.
Preferred Rewards was piloted in five states and was well received. The national rollout of the program will happen in four waves, between June and September. The first nine states to get Preferred Rewards are Arkansas, Iowa, Maine, Massachusetts, New Hampshire, New Mexico, Oklahoma, Rhode Island and Texas.
Benefits of Preferred Rewards membership
For those who maintain the three-month average minimum balance of $20,000 there are several perks, including extra cash back or rewards points on eligible Bank of America credit cards. Other benefits include fee waivers for non-Bank of America ATMs and other fee-based services, a dedicated customer service team that gives priority to Preferred Rewards members and higher interest rates on Rewards Money Market Savings accounts.
Membership benefits increase with each level of membership. Minimum balances for Gold, Platinum and Platinum Honors were not disclosed and may vary from state to state; customers should check with their banks to find out their policy. Average balances will be reviewed monthly to ensure minimum balances for program participation are met, and to offer higher-tier memberships to those who qualify.
Other benefits of Preferred Rewards:
Discounts on home equity interest rates
Credits for purchasing a mortgage or refinancing a loan ($200 credit for Gold members, $400 for Platinum and $600 for Platinum Honors)
$0 equity trades with Merrill Edge online equity and Exchange-Traded Funds trades.