ATMOSPHERE - Think back on your last 10 purchases. Did you have to take out your wallet to complete the transaction? If you did, did you use currency to pay? If you said no to either of these questions, you’re not alone.
According to the recent Bank of America Trends in Consumer Mobility Report, Americans are warming up to the idea of cashless payments as a first choice. In fact, nearly one-fourth of Americans could forego using physical currency for a month.
Moving away from carrying physical cash and relying more on a cash rewards card offers many benefits – including the ability to earn and track cash back on everyday spending. Consumers are inundated with different types of rewards cards to choose from, but I find that in today’s digital age, the cash rewards card is king for the flexible and unique options it offers for both earning and redeeming.
Here are some ways to maximize your earnings using a cash rewards card.
Choosing where you earn rewards is the most important differentiator when picking a card
While travel and entertainment rewards cards are popular, in some cases they may limit the ways you can earn rewards. Regardless of whether your spending priorities change frequently or remain steady, you should consider a flexible card that allows you to earn cash back across multiple categories that align with your spending patterns.
For example, the Bank of America Cash Rewards credit card allows our customers to earn 3% cash back on gas, or change it to one of five other popular categories once each calendar month – like online shopping or dining. Plus, customers automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases.
Pair a banking rewards program with the card to maximize your earnings
According to a recent Bank of America study, only 38% of credit card users are enrolled in a banking rewards program. To ensure you’re not missing out on cash back bonuses, consider consolidating your savings and investments from multiple financial institutions down to a bank that offers banking rewards.
For example, you could earn up to 5.25% cash back in the choice category by pairing the Cash Rewards card with our Preferred Rewards program. Bank of America clients can enroll in Preferred Rewards when they maintain a 3-month average combined balance of $20,000 across their qualifying deposit and investment accounts. There are three tiers in Preferred Rewards, and once a member is enrolled we move them up automatically when their balances qualify them for the next rewards tier.
One of the many great perks and benefits that Preferred Rewards members receive is a credit card rewards bonus of up to 75% on every purchase.
Turn rewards earnings into investments for your future
The Bank of America Merrill Edge report found Americans contribute around $18,000 into their savings and investment accounts each year. Bank of America Cash Rewards customers can redeem their cash back into these accounts, helping turn everyday spending into long-term financial success.
Clients can redeem for cash back as a deposit into their Bank of America checking or savings accounts, as a credit to eligible Merrill accounts including 529 accounts, or choose a statement credit to their credit card, or a check.
You can even choose a new automatic redemption feature for your eligible Merrill accounts, to make recurring contributions starting at $25.
If you’re interested in investing your cash back rewards earnings, a great perk that our Preferred Rewards members receive is up to 100 $0 stock and ETF trades through Merrill Edge.
Use digital tools to track, redeem and discover new rewards
Digital tools such as the Bank of America My Rewards dashboard, available in online and mobile banking, can help you track all of the financial rewards, deals and benefits you earn across multiple rewards programs. With My Rewards, you can easily see how to maximize your earnings, redeem your existing rewards and access new rewards you may be missing out on.
The adage "cash is king" initially referred to physical currency, but in today’s digital age it’s taken on a whole new meaning. Cash rewards cards enable you to choose where you can earn rewards and how you can use them, allowing you to take greater control over your finances.[WB]