When it comes to credit cards from Bank of America, the Premium Rewards and Travel Rewards cards stand out as two of the most compelling options for earning flexible travel rewards. Both cards offer generous earnings on everyday purchases that can be redeemed for travel, cash back, gift cards, and more. However, there are some key differences between the two that may make one a better fit depending on your spending habits and travel goals.
In this in-depth comparison, we’ll take a close look at the rewards programs, welcome bonuses, annual fees, and additional benefits of the Bank of America Premium Rewards and Travel Rewards credit cards. We’ll also explore common questions and considerations to help you decide which card aligns best with your needs.
Bank of America Premium Rewards Credit Card Overview
The Bank of America Premium Rewards credit card is a premium travel rewards card that offers a generous welcome bonus and high earnings on travel and dining purchases. Here’s a quick overview of its key features:
Welcome Bonus: Earn 60,000 bonus points after spending $4,000 in the first 90 days. Based on Bank of America’s standard redemption value of 1 cent per point, this bonus is worth $600.
Rewards Program:
- 2X points per dollar spent on travel and dining purchases
- 1.5X points per dollar spent on all other purchases
Annual Fee: $95
Additional Benefits:
- Up to $100 in annual airline incidental fee credits
- Up to $100 credit for Global Entry or TSA PreCheck application fees every 4 years
- Trip delay reimbursement, trip cancellation/interruption insurance, and other travel protections
Bank of America Travel Rewards Credit Card Overview
The Bank of America Travel Rewards credit card is a no-annual-fee option that offers a straightforward rewards program and a solid welcome bonus. Here are the key details:
Welcome Bonus: Earn 25,000 bonus points after spending $1,000 in the first 90 days. This bonus is worth $250 when redeemed for travel purchases.
Rewards Program:
- 1.5X points per dollar spent on all purchases
- 3X points per dollar spent on travel booked through the Bank of America Travel Center
Annual Fee: $0
Additional Benefits:
- 0% introductory APR on purchases and balance transfers for 15 billing cycles (then a variable APR of 18.24%-28.24%)
- No foreign transaction fees
READ ALSO: Hidden benefits of the Bank of America Travel Rewards card
Comparing the Welcome Bonuses
One of the most significant differences between these two cards is the value of their welcome bonuses. The Bank of America Premium Rewards card offers a much larger bonus of 60,000 points (worth $600) after meeting a higher minimum spend requirement of $4,000 in the first 90 days.
In contrast, the Travel Rewards card offers a more modest bonus of 25,000 points (worth $250) after spending just $1,000 in the first 90 days.
For frequent travelers or those planning a major trip, the Premium Rewards card’s higher bonus could provide a substantial head start on earning rewards for flights, hotels, and other travel expenses. However, if you’re a more casual traveler or prefer a lower minimum spend requirement, the Travel Rewards card’s bonus may be more appealing.
Rewards Earning Potential
When it comes to earning rewards on your everyday purchases, the Premium Rewards card offers a higher potential return, particularly for those who spend heavily on travel and dining.
With the Premium Rewards card, you’ll earn:
- 2X points per dollar spent on travel and dining purchases
- 1.5X points per dollar spent on all other purchases
In contrast, the Travel Rewards card offers a flat rate of 1.5X points per dollar spent on all purchases, with the exception of travel booked through the Bank of America Travel Center, which earns 3X points.
To illustrate the earning potential of each card, let’s consider a hypothetical spending scenario:
Monthly Spending:
- $500 on travel
- $300 on dining
- $1,200 on other purchases
With the Premium Rewards card, you would earn:
- 1,000 points on travel ($500 x 2X)
- 600 points on dining ($300 x 2X)
- 1,800 points on other purchases ($1,200 x 1.5X) Total monthly earnings: 3,400 points (worth $34)
With the Travel Rewards card, you would earn:
- 750 points on travel ($500 x 1.5X)
- 450 points on dining ($300 x 1.5X)
- 1,800 points on other purchases ($1,200 x 1.5X) Total monthly earnings: 3,000 points (worth $30)
Over the course of a year, the Premium Rewards card would net you an additional 4,800 points (worth $48) based on this spending pattern.
It’s worth noting that both cards offer the opportunity to earn even more rewards through the Bank of America Preferred Rewards program. Depending on your tier (which is based on your combined Bank of America and Merrill account balances), you can earn 25%-75% more points on every purchase.
Annual Fees and Additional Benefits
One of the most significant trade-offs between these two cards is the annual fee. The Bank of America Premium Rewards card carries a $95 annual fee, while the Travel Rewards card has no annual fee.
However, the Premium Rewards card offsets its annual fee with some valuable additional benefits, including:
- Up to $100 in annual airline incidental fee credits
- Up to $100 credit for Global Entry or TSA PreCheck application fees every 4 years
- Trip delay reimbursement, trip cancellation/interruption insurance, and other travel protections
The Travel Rewards card, on the other hand, offers a 0% introductory APR on purchases and balance transfers for 15 billing cycles. This can be a valuable perk if you need to finance a large purchase or consolidate existing debt.
Both cards also offer no foreign transaction fees, making them excellent choices for international travel.
Redemption Options
One area where these two cards are quite similar is in their redemption options. With both the Premium Rewards and Travel Rewards cards, you can redeem your points for:
- Travel bookings through the Bank of America Travel Center
- Statement credits to cover travel purchases (including flights, hotels, rental cars, and more)
- Cash back in the form of a statement credit or direct deposit into a Bank of America or Merrill account
- Gift cards
This flexibility is a significant advantage, as it allows you to redeem your rewards however you see fit, whether for travel or non-travel purposes.
Conclusion
When it comes to choosing between the Bank of America Premium Rewards and Travel Rewards credit cards, there is no one-size-fits-all answer. Both cards offer compelling rewards programs and benefits that cater to different types of travelers and spenders.
The Bank of America Premium Rewards card is an excellent choice for those who prioritize travel and dining rewards, don’t mind paying an annual fee, and can take advantage of the card’s valuable additional benefits like airline incidental fee credits and travel protections. Its higher welcome bonus and earning potential on travel/dining make it a strong contender for frequent travelers willing to pay the $95 annual fee.
On the other hand, the Bank of America Travel Rewards card is a fantastic no-annual-fee option for those who want to earn rewards without paying an annual fee. Its straightforward 1.5X earnings on all purchases (and 3X on Bank of America Travel Center bookings) make it a solid choice for more casual travelers or those who prefer a simpler rewards structure.
Ultimately, your decision should come down to your typical spending patterns, travel frequency, and whether you’re comfortable paying an annual fee for additional perks and higher earning potential. By carefully considering your needs and goals, you can select the card that aligns best with your lifestyle and maximizes your rewards earnings.
No matter which card you choose, both the Bank of America Premium Rewards and Travel Rewards offer flexible redemption options, no foreign transaction fees, and the potential to earn even more rewards through the Bank of America Preferred Rewards program. With either card in your wallet, you’ll be well on your way to earning valuable travel rewards for your next adventure.
READ ALSO: The Best Travel Rewards Card with No Annual Fee: Why I love the Bank of America Travel Rewards card
FAQs
To further clarify the differences between these two cards and help you make the best decision, let’s address some frequently asked questions:
Can I have both the Premium Rewards and Travel Rewards cards?
Yes, you can hold both cards simultaneously. However, Bank of America typically won’t allow you to earn the welcome bonus on one card if you’ve already earned the bonus on the other within the past 24 months.
Which card is better for travel spending?
The Bank of America Premium Rewards card is generally better for travel spending due to its higher earning rate of 2X points per dollar on travel purchases (as well as dining). However, if you book all your travel through the Bank of America Travel Center, the Travel Rewards card’s 3X earnings rate on those purchases could be more valuable.
Can I transfer points between these two cards?
No, unfortunately, you cannot transfer points between the Premium Rewards and Travel Rewards cards. The points you earn with each card are separate and must be redeemed accordingly.
Do either of these cards offer airline or hotel transfer partners?
No, neither the Premium Rewards nor the Travel Rewards card allows you to transfer points to airline or hotel loyalty programs. The points you earn are best redeemed for travel bookings, statement credits, cash back, or gift cards through Bank of America.
Which card is better for every day, non-travel spending?
The Bank of America Premium Rewards card is likely the better choice for every day, non-travel spending due to its higher earning rate of 1.5X points per dollar on all other purchases (compared to the Travel Rewards Card)
