Credit card face-off: Bank of America Premium Rewards vs. the Chase Sapphire Preferred

Alyssa Powell/Business Insider

• The Bank of America® Premium Rewards® Visa® credit card and the Chase Sapphire Preferred Card are two of the best rewards credit cards with annual fees at the $95 level.
• Both cards offer valuable sign-up bonuses and rewards with on all your spending, as well as travel protections and waived foreign transaction fees.
• If you want to use rewards to travel, the Chase Sapphire Preferred card is probably a better choice thanks to the airline and hotel partners in the Ultimate Rewards program.
• The Bank of America Premium Rewards card is a better pick if you prefer using rewards for cash back.
• See Business Insider's list of the best rewards credit cards you can get »

When it comes to earning rewards with a credit card, there are almost too many option to choose from at the moment. You've got airline cards and hotel credit cards, but you also have cash-back credit cards that you let earn statement credits, gift cards, or merchandise.

There are also travel rewards cards that earn "flexible" points that can be redeemed in various ways, and these cards give you several options when it comes to cashing in your points. These cards offer the most bang for your buck since they let you earn rewards upfront and decide how to redeem them in later.

Both the Bank of America® Premium Rewards® Visa® credit card and the Chase Sapphire Preferred card fall into this category, which is part of the reason they're both so popular. If you're considering a credit card to earn rewards and want some options when it comes to redeeming them, keep reading to see how these two cards stack up.

Keep in mind that we're focusing on the rewards and perks that make these credit cards great options, not things like interest rates and late fees, which will far outweigh the value of any points or miles. It's important to practice financial discipline when using credit cards by paying your balances in full each month, making payments on time, and only spending what you can afford to pay back.

Bank of America Premium Rewards Card vs. Chase Sapphire Preferred: The biggest differences

Alyssa Powell/Business Insider

Welcome offer

Both cards offer a similar sign-up bonus, although the Chase Sapphire Preferred comes out slightly ahead. With the Sapphire Preferred, you'll earn 60,000 points after you spend $4,000 on your card within the first three months. These points are worth $600 in statement credits or gift cards, but the bonus is worth $750 if you redeem points for travel thanks to the fact you get 25% more travel for free when you use points to book airfare, hotels, and other travel through the Chase portal.

The Bank of America Premium Rewards Visa credit card gives you 50,000 points worth $500 after you spend $3,000 on your card within 90 days of account opening. This bonus is obviously slightly lower, but it's worth considering that the minimum spending requirement is also easier to meet.

Earning rate on purchases

While both the Chase Sapphire Preferred and the Bank of America Premium Rewards card gives you 2x points on travel and dining purchases, the Bank of America Premium Rewards card comes out way ahead in terms of ongoing earnings. That's because it gives you 1.5 points per dollar on regular purchases, whereas the Chase Sapphire Preferred only doles out 1 point per dollar spent on regular spending and bills.

Redemption options

Here's where things get somewhat complicated. While the Bank of America Premium Rewards card does offer more rewards on regular spending, points earned with the Chase Sapphire Preferred can be worth a lot more when you go to redeem them.

That's because points earned with this card work within the Chase Ultimate Rewards program. Not only can you get 25% more value for your points when you redeem them for travel through Chase, but you can also transfer Chase points 1:1 to popular airline and hotel programs like Southwest Rapid Rewards, United MileagePlus, British Airways, World of Hyatt, and Marriott Bonvoy. Anyone who has ever transferred points to airlines specifically knows that you can often get outsized value in return when you do.

With the Bank of America Premium Rewards card, on the other hand, your points are only worth 1 cent each. You can redeem them for statement credits, gift cards, or travel through the Bank of America Travel Center, but you can't get any more value than that.

Annual fee

Both cards change the same $95 annual fee, and neither one of them waive it the first year. The annual fees shouldn't necessarily discourage you - you'll get a lot of value with either card when you consider just the sign-up bonus alone. After all, the sign-up bonus on the Chase Sapphire Preferred is worth $600 at minimum, and you'll get at least $500 in value out of the bonus on the Bank of America Premium Rewards card.

Benefits - what's different?

Airline incidental fee with the Bank of America Premium Rewards card

The Bank of America Premium Rewards card comes with up to $100 in airline incidental fees each year, good for seat upgrades, baggage fees, and more. This perk is actually exceptional when you consider this card only charges $95 per year.

Credit for Global Entry or TSA PreCheck with the Bank of America Premium Rewards card

The Bank of America Premium Rewards card also gives you up to a $100 credit for Global Entry or TSA PreCheck every four years. Both of these programs let you skip crowded airport lines, saving both hassle and time.

Potential for 25% to 75% more rewards with the Bank of America Premium Rewards card

The Bank of America Premium Rewards card also comes with a really unique perk for Bank of America customers. If you qualify for the Bank of America Preferred Rewards program, which requires a minimum of $20,000 in eligible assets, you can earn 25% to 75% more rewards with your credit card for each dollar you spend.

Just keep in mind that a minimum deposit amount is required for Bank of America Preferred Rewards, and that the top tier of this program, Platinum Honors, requires you to have at least $100,000 on deposit to qualify.

25% more travel for free with the Chase Sapphire Preferred

If you plan to use your points to book travel through a portal, the Chase Sapphire Preferred is probably the better bet. This card gives you 25% more travel for free when you redeem points for airfare, hotels, and other travel through the Chase portal, which partners with Expedia.com.

Airline and hotel transfers with the Chase Sapphire Preferred

Finally, don't forget that the Chase Sapphire Preferred is the only card among the two that lets you transfer points to airline and hotel partners. This option can be important if you travel a lot, since transfer partners can help you get more bang for your buck and access to more travel options in general.

Benefits shared by both cards

Travel insurance benefits

Both of these credit cards offer a selection of travel insurance perks including trip cancellation/interruption insurance and baggage delay insurance. These benefits may be important for you if you travel often and use your credit card to pay.

No foreign transaction fees

Also note that both of these cards let you avoid foreign transaction fees, which some cards charge on purchases made abroad. Avoiding these fees is crucial if you travel a lot outside the United States and don't want to pay an additional 2% to 3% for everything you buy.

Which card is best for you?

Before you decide between these two cards, it's important to think about how you want to redeem your rewards. At the end of the day, the Chase Sapphire Preferred offers many more options for travel. If you just want to cash in points for gift cards or statement credits, however, earning 1.5 points per dollar for regular purchases with the Bank of America Premium Rewards card might leave you better off.

Ultimately though, you may not really have to choose. If you can't decide between these two cards, you can also sign up and earn the bonus on both.

Click here to learn more about the Bank of America Premium Rewards card »

Click here to learn more about the Chase Sapphire Preferred card »

• More credit card coverage
• What's the best airline credit card?
• The best cash-back credit cards
• Southwest credit card review
• Best rewards credit cards

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

Business Insider may receive a commission from The Points Guy Affiliate Network, but our reporting and recommendations are always independent and objective.

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

NOW WATCH: Why red and green are the colors of Christmas