The Bank of America Cash Rewards card is called the 1, 2, 3 card because it earns 1% on every purchase, 2% at grocery stores and wholesale clubs, and 3% on gas for the first $2,500 in combined 2% and 3% category purchases each quarter.
On the surface, it doesn't seem like a good card, but if you have a lot of funds with Bank of America, then it scales well.
There are alternative cards out there like the Citi Double Cash card that earn 2% back on all purchases. For gas, there are also better alternatives that earn up to 5% cash back with no cap.
Despite all of this, I think the Bank of America Cash Rewards card is a good card to start with. I had one in the past that I product changed to the Better Balance Rewards card (not possible now, YMMV).
- Annual fee: $0
- Sign-up bonus: $150 after $500 in spend within the first three months
- 1% on all purchases
- 2% at grocery stores and wholesale
- 3% on gas
You can view credit card offers by going to the "Credit Card Offers" tab. Find offers for the respective cards in "Cash Back Credit Cards." You don't have to use our links, but we're grateful when you do. Thank you for supporting AskSebby!
The main benefit of the Cash Rewards card is that the more assets you have with Bank of America, the more rewards you'll receive.
If you have less than $20,000 in assets, then you are in the Base category. On the opposite end of the spectrum, if you have $100,000+ in assets, then you're at the Platinum Honors level.
The Platinum Honors level earns 1.75% on everything else, 3.50% on grocery stores and wholesale clubs, and 5.25% on gas.
Overall, the Bank of America Cash Rewards card is a good starter card, and if you have a large number of assets with Bank of America, then it's a good card to keep in the long-run.