This just in: Bank of America has unleashed a new credit card with a cash back reward, which will rise with the type of shopping the consumer does. That makes BofA the latest of the so-called “big banks” to do so.
A BankAmericard Cash Rewards Visa card gives customers the chance to earn cash back on all purchases. All purchases, but the likelihood rises depending on what they’re buying. Generally, the reward is 1 percent of the price.
This program designed to reflect customer behavior, or at least according to Bank of America Consumer Banking Products Executive Susan Faulkner as reported by CNBC. Apparently, one-third of all the credit card transactions that Bank of America handles are for gas or groceries.
The customers who choose to use their account for at least $100 in purchases in the first two months the account is open will receive an extra $50 bonus, as reported by CNBC.
Individuals who have their rewards deposited into a Bank of America checking or savings account will get an additional 10 percent bonus.
But beware! Even this card isn’t without its precautions. For example, the card has an introductory interest rate of 0 percent for the first 12 statements.
And after surpassing that point, the interest will switch to a variable rate based on the prime rate — between 12.99 percent and 20.99 percent, depending on credit status.
So cash advances from ATMs or bank tellers will carry a 24.99 percent interest rate, but late payments can jack that rate up an unsettling five percent.
Bank of America is offering a MasterCard with a similar tiered rewards structure, offering 1 percent cash back on all purchases, 2 percent on restaurant purchases and 3 percent on office supply store, gas station and computer network service purchases. There is no cap on the purchases categories for the business card. Furthermore, as planned by the company so far, there is also no bonus for depositing rewards into a savings or checking account, depending on the customer’s preference.