Starting June 1, 2025, Bank of America is rolling out enhanced cash-back rates for new cardholders of its two flagship cash-rewards products—the Customized Cash Rewards® and Unlimited Cash Rewards® credit cards—valid during the first 12 months of account opening. Customized Cash Rewards cardholders will earn 6% cash back in their selected category (up from 3%), while Unlimited Cash Rewards cardholders will earn 2% back on all purchases (up from 1.5%) during this promotional period. Both cards also carry a $200 welcome bonus after spending $1,000 within 90 days of account opening, and there is no annual fee
Press Release
Bank of America Credit Card Offer (Starts June 1): 6% and 2% Cashback for One Year + $200 Signup Bonus
Details of the Cashback Increases
Customized Cash Rewards Card
- Elevated
Earnings: New cardholders earn 6% cash back in one chosen
category—including gas & EV charging, online shopping (e.g., cable,
internet, phone plans, streaming), dining, travel, drug stores, or home
improvement & furnishings—for the first year (up from 3%).
- Quarterly
Cap: The 6% rate applies to up to $2,500 in combined purchases
per quarter; purchases beyond this threshold revert to 1% back.
- Other
Purchases: Cardholders continue to earn 2% at grocery stores and
wholesale clubs, and 1% on all other purchases.
Unlimited Cash Rewards Card
- Elevated
Earnings: New Unlimited Cash Rewards cardholders will receive 2%
cash back on every purchase during the first year, with no earnings
cap (up from 1.5%).
- Post-Promotion
Rate: After 12 months, the rate reverts to the standard 1.5% back on
all purchases.
$200 Welcome Bonus
Both cards feature a $200 statement credit welcome
bonus after a minimum of $1,000 in purchases within the first 90 days
of account opening. This aligns with previous Bank of America promotions but
pairs the bonus with the elevated cash-back rates for added value.
Eligibility and How to Apply
- New
Account Requirement: Only applicants approved for a new
Customized Cash Rewards or Unlimited Cash Rewards card are eligible;
existing cardholders or product conversions do not qualify.
- Availability:
Offer is available to U.S. residents on accounts opened June 1, 2025,
or after; applications submitted beforehand must wait until the effective
date.
- No
Annual Fee: Both cards maintain a $0 annual fee, enhancing
their appeal for cardholders focused on maximizing rewards without extra
costs.
Analysis and Implications
- Consumer
Benefit: The temporary doubling (or more) of rewards rates provides
strong incentive for everyday spenders, especially in higher-spend
categories like gas, groceries, and online shopping.
- Competitive
Positioning: With major issuers like Chase and Citi offering similar
short-term boosts, this move helps Bank of America stay competitive in the
cash-back market.
- Bank
Strategy: The promotion leverages Bank of America’s large
retail-banking footprint to cross-sell creditcard products and deepen
customer engagement.
Historical Context
Bank of America periodically refreshes its rewards structure
and sign-on bonuses. In mid-2024, the Customized Cash Rewards card offered 3%
back in rotating categories with a $2,500 quarterly cap, and the Unlimited Cash
Rewards card provided a steady 1.5% back on all purchases. This year’s
enhancement not only doubles those base rates but also underscores a broader
trend of issuers using elevated offers to attract new cardholders in a
competitive rate environment.
Key Takeaways
- Effective
Date: June 1, 2025
- Enhanced
Rates (First Year):
- 6%
in one chosen category (Customized Cash Rewards; up to $2,500/quarter)
- 2%
on all purchases (Unlimited Cash Rewards; uncapped)
- Welcome
Bonus: $200 after $1,000 spend in 90 days
- No
Annual Fee
- Ideal
For: New applicants seeking to maximize cash back on everyday and
discretionary spending for the next 12 months
Interested consumers should mark their calendars for June 1 and consider applying then to take full advantage of this limited-time boost.