BofA Customized Cash Rewards Benefits Guide: What's Actually Covered

6% in a category you pick for the first year, 2% at the grocery store, and a $200 bonus. Here's exactly how each piece works, and where the limits kick in.

The Bank of America® Customized Cash Rewards Credit Card is built around choice: you pick the spending category where you want to earn the most, and the card adds a second, automatic bonus rate at grocery stores and wholesale clubs. That flexibility also makes the card easy to misunderstand, since the highest rates apply only up to a shared quarterly spending cap.

If you're new to how credit card rewards work, here's a full breakdown of what the card actually covers, from the choice category through redemption.

You select one of six categories to earn the higher rate:

• Gas and EV charging stations

• Online shopping, including cable, internet, phone plans, and streaming

• Dining

• Travel

• Drug stores and pharmacies

• Home improvement and furnishings

For the first year after you open the account, that category earns 6% cash back: a 3% base rate plus a matching 3% first-year bonus. After the first year, it drops to 3% on an ongoing basis. Either way, the elevated rate only applies up to the shared quarterly cap described below, not to unlimited spending in the category.

If you don't make a selection, Bank of America sets your choice category to gas and EV charging stations by default, so it's worth picking one on day one if gas isn't your biggest expense.

Every cardholder also earns 2% cash back at grocery stores and wholesale clubs automatically, no matter which choice category they've picked. There's no setup required, and it runs alongside your choice-category rate. The catch: it shares the same $2,500 quarterly cap instead of getting its own.

The choice-category rate and the 2% grocery/wholesale club rate share one limit: $2,500 in combined purchases each quarter. Once you cross it, every additional purchase in either category earns just 1% for the rest of the quarter. The limit resets when the new quarter starts.

$2,500 a quarter works out to roughly $833 a month across both categories, and it's easier to reach than it sounds. According to the Bureau of Labor Statistics' latest Consumer Expenditure Survey, the average U.S. household spent $6,224 on food at home and $3,945 on food away from home in 2024. That's about $1,556 in groceries and $986 in dining per quarter. A household that picks dining and runs all its grocery and restaurant spending through this card would land right around the cap. Smaller households, or anyone who picks a lighter category, will have more room, but a large one-off purchase, like new furniture or a renovation, can push you over quickly.

Every purchase outside your choice category and grocery stores/wholesale clubs earns 1% cash back, with no limit. Once you hit the quarterly cap, the rest of your spending in those two categories also drops to 1% until the next quarter. Your rewards don't expire as long as the account stays open.

New cardholders can $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening. As the name suggests, it's tied to the online offer, so apply through Bank of America's website if you want it. The bonus comes on top of the cash back those same purchases already earn, and it applies regardless of which choice category you select.

$1,000 over three months works out to roughly $333 a month, which most households can cover with recurring, everyday bills. Sanchez Fuentes recommends using the card for those bills rather than spending more than usual to hit the welcome bonus. "If you have to invent spending to get there, it's definitely the wrong card," he says.

The choice category isn't locked in. You can change it once per calendar month through Bank of America's Online Banking or Mobile Banking app; if you make no change, your current selection stays in place. A new selection applies to future purchases, not ones you've already made. That flexibility lets you shift your elevated rate toward whichever category is driving the most spending in a given season, like travel ahead of a trip or home improvement during a renovation, without applying for a new card.

From My Experience: Comb through the fine print so you know exactly what qualifies for an elevated rate category. Otherwise, you'll only earn 1% on those purchases. Case in point: When I first opened this card a few years back, I used it mainly to pay a homeowners insurance premium, thinking it would count under the home category. After reading the fine print, I learned that insurance premiums aren't eligible.

This happens because purchases are categorized by the merchant, not by Bank of America. Each merchant is assigned a merchant category code (MCC) based on what it primarily sells, and if a merchant's code doesn't match the category you'd expect, the purchase won't earn bonus rewards. Bank of America lists examples and exceptions for each category on its categories and exclusions page.

You can redeem cash rewards for any amount, at any time, through several options:

• Statement credit

• Deposit into an eligible Bank of America checking or savings account

• Credit to an eligible Merrill account

• Eligible purchases at Amazon.com or when you check out with PayPal

A few options have a minimum: redeeming for a check or a contribution to a qualifying 529 account with Merrill starts at $25. You can also set up automatic redemptions of $25 or more into an eligible Bank of America or Merrill account (statement credits, checks, and 529 contributions aren't eligible for automatic redemption).

The card charges no annual fee, so none of its cash back has to offset a membership cost. Bank of America customers who join its BofA Rewards™ program can also earn a rewards bonus on eligible credit card purchases, on top of the card's regular cash back. Eligibility and the size of the bonus depend on your broader banking and investing relationship with Bank of America. If you're weighing this card against the issuer's other options, see our roundup of the best Bank of America credit cards.

New accounts get 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 17.74% - 27.74% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 5%. Balance transfers may not be used to pay any account provided by Bank of America.. Balance transfers carry a 3% intro fee during that same 60-day window, rising to 5% for transfers made afterward. You can't use a balance transfer to pay off another Bank of America account. Once the intro period ends, a variable APR of 17.74% - 27.74% applies to any remaining balance. If moving debt is your main goal, compare this offer against dedicated balance transfer cards.

This card is built for people who have one or two categories, like dining, gas, or online shopping, where they consistently spend enough to make an elevated rate worthwhile, and who don't mind revisiting their category choice occasionally as spending shifts.

From My Experience: It's best for folks who know their spending habits well and can benefit from the elevated earn rate in designated categories. For example, I'm a foodie who loves to eat out and spend money through dining rewards platforms.

If your spending is spread evenly across many categories with no clear standout, a flat-rate card like the Bank of America® Unlimited Cash Rewards Credit Card may be simpler to manage day to day; you can also browse our full list of top cash back credit cards. If groceries and one other category make up a meaningful share of your budget, the Customized Cash Rewards card is designed to reward exactly that pattern.

The Customized Cash Rewards card rewards people who know where their money goes. Pick a category that matches your steadiest spending, keep an eye on the $2,500 quarterly cap you share with groceries, and revisit your choice when the 6% first-year rate drops to 3%. With no annual fee and a $200 bonus that's reachable through normal spending, the main way to lose value is by not paying attention to the category rules.

What categories can I choose for the 6% rate?

Gas and EV charging stations; online shopping (including cable, internet, phone plans, and streaming); dining; travel; drug stores and pharmacies; or home improvement and furnishings. The 6% rate applies for the first year only, then drops to 3%.

Does the 2% grocery rate count against the same spending cap as my choice category?

Yes. The choice-category rate and the 2% grocery/wholesale club rate share one combined cap: the first $2,500 in purchases across both each quarter. After that, those purchases earn 1%.

How often can I change my choice category?

Once per calendar month, through Bank of America's Online Banking or Mobile Banking app. If you never choose, it defaults to gas and EV charging stations.

Does the card charge an annual fee?

The annual fee is $0, so the elevated cash back rates add value with no membership cost working against them.

• Bank of America: Customized Cash Rewards credit card product page (rewards structure, quarterly maximum, welcome offer, APR, redemption options)

• Bank of America: Customized Cash Rewards categories and exclusions (default category, merchant category codes)

• Bank of America: Customized Cash Rewards terms and conditions

• U.S. Bureau of Labor Statistics: Consumer Expenditures — 2024 (household food spending)

Editorial disclosure: The credit card offers and information presented on this page are current as of the published date. However, credit card terms, including APRs, fees, and promotional offers, are subject to change without notice. Some offers listed may no longer be available or may have expired. Please refer to the issuer's website for the most up-to-date terms and conditions.