Why you should consider opening Bank of America's $95-a-year rewards credit card

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The Points Guy

• The Bank of America Premium Rewards credit card is a great option for anyone looking for a simple but solid rewards credit card.
• This card has a low $95 annual fee and no foreign transaction fees.

In recent years, premium credit cards have become more competitive than ever. The sign-up bonuses are sky-high and a growing list of attractive benefits makes it difficult to choose which credit card to add to your wallet.

To help make your choice easier is the Bank of America Premium Rewards credit card. As one of the best mid-tier cards, you can expect cash back for redemptions, a flexible rewards program, a low $95 annual fee, and above-grade benefits.

Welcome bonus

The Bank of America Premium Rewards credit card offers 50,000 bonus points when you spend $3,000 in the first three months of opening the card. Essentially, the value of the 50,000 points is $500.

Because the Bank of America Premium Rewards credit card acts more like a cash-back card rather than earning points or miles that can be transferred and redeemed with travel partners, points are flexible and can be used for anything, including flights, gym memberships, a new laptop, or anywhere that accepts Visa. You will receive a statement credit that will post automatically, and the earning potential is virtually limitless.

Bonus categories

If you enjoy travel and dining, the card offers bonus categories for these two, earning you 2 points per dollar spent. Other great travel perks include the $100 credit for Global Entry or TSA PreCheck, $100 airline credit, and trip delay insurance.

For all other categories, you will earn 1.5 points per dollar spent.

As a Bank of America customer, you even have the potential to increase your earnings by taking advantage of the Preferred Rewards Program. Basically, depending on how much you have invested with Bank of America, you can qualify for a higher earning rate.

No matter what you choose to redeem your points for, each point is worth one cent. This relieves stress for credit card holders who are used to spending copious amounts of time discerning the maximum value of every point. The Bank of America Premium Rewards credit card is simple and convenient, especially for users who like the idea of points functioning like cash. For example, you can redeem points as a statement credit against large purchases that aren't covered by points, such as a car, new television, airline flight, or lavish meal out.

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The Bank of America Premium Rewards card offers some terrific travel benefits, such as trip protection and a credit toward Global Entry.

Annual fee

This card has a low $95 annual fee and no foreign transaction fees.

Benefitting from the Bank of America Premium Rewards Card

You can take advantage of some terrific benefits with your Bank of America Premium Rewards card. From Global Entry to trip protection, you can become a pro traveler just by adding this card! Here are the best benefits to know about:

$100 credit for Global Entry or TSA PreCheck

If you don't already have either of these, Global Entry is definitely the better option, as it includes TSA PreCheck. Your $100 credit will benefit you for the duration of up to five years, and you will save some serious time bypassing long lines when flying to international destinations. If you already have Global Entry, you can still apply this credit toward the application of a family member or friend.

$100 airline incidental credit

This credit can be used toward purchases like seat upgrades, baggage fees, or in-flight services. It will automatically apply to your account each year, so make sure you get your money's worth when taking to the skies.

Baggage delay insurance

If you have to wait more than six hours for your luggage, you will be reimbursed up to $100 a day for five days. Note that you will have to keep the receipts of any purchases on essentials like toiletries and clothing and submit a claim to be reimbursed.

Trip delay insurance

If your flight is delayed more than 12 hours, you're eligible for reimbursement of up to $500 in expenses per ticket. This includes lodging and meals for those times when travel plans that go awry. You can also rest easy knowing you will be reimbursed up to $5,000 for any unused travel expenses like tours and hotels.

Purchase protection

If you buy a new valuable that becomes damaged or lost, you can take advantage of purchase protection. You will be covered for repairs, replacements, or reimbursements up to $10,000 per claim.

How to redeem points

The most popular way to redeem points with this card is through cash back. Cash-back redemptions can be received in the form of a statement card, as a deposit it into an eligible Bank of America checking or savings account, or into a Merrill Lynch or 529 college savings account.

If you have vacation plans, you can book flights directly through the Bank of America travel portal. This works similarly to other redemption portals, where you can search flights as you would on a carrier website and complete your booking by redeeming points. You will still earn award miles and elite credits; however, you should always check the carrier website in the case of finding a better fare class at the same value. You could always purchase airfare and opt to receive cash back if you find a lower price elsewhere.

Another option allows you to redeem points for gift cards at Amazon, Whole Foods, Starbucks, and more. Out of your three redemption options, this is the least appealing for the fact that purchasing the items outright and redeeming your points as a statement credit would earn you more value, especially if you have to make a return.

Is the Bank of America Premium Rewards card right for you?

With more and more airlines and hotels cutting the value of miles and points, it's all the more difficult to find available flights and hotel stays that maximize rewards. A card like the Bank of America Premium Rewards credit card stands out amongst restrictive competitors - its flexible, you don't need to scour awards charts, and your earning (statement credits) post automatically. It's a great option for anyone looking for a simple but solid rewards credit card.

Click here to learn more about the Bank of America Premium Rewards Card from Insider Picks' partner: The Points Guy.

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