Bank of America Drops 'Preferred' — Here's What the New BofA Rewards Program Means for Your Points

Bank of America just announced the biggest shakeup to its rewards program in years. The “Preferred Rewards” program is becoming BofA Rewards, and while some changes are positive, others could seriously hurt your credit card earnings.

Here’s everything you need to know before the changes hit on May 27, 2026.

What’s Changing?

The Good: Anyone Can Join Now

Previously, you needed at least $20,000 in combined Bank of America and Merrill accounts to even qualify for the loyalty program. That’s gone.

Starting in May, anyone with a BofA personal checking account can join and get access to credit card rewards boosts.

The Bad: Reward Rates Are Getting Cut

Here’s where it gets painful. The new tier structure lowers bonuses for mid-tier members:

Old Tier	Balance	Old Bonus	New Tier	New Bonus
Gold	$20K-$50K	25%	—	—
Platinum	$50K-$100K	50%	—	—
Platinum Honors	$100K-$1M	75%	Preferred Honors	50%
Diamond Honors	$1M+	75%	Premier	75%

The biggest hit: If you have between $100,000 and $999,999 with Bank of America, your credit card rewards bonus drops from 75% to 50%. That’s a 25-percentage-point cut.

New Tier Structure

Here’s what the new program looks like:

New Tier	Required Balance	Credit Card Bonus
Member	None (just checking)	10%
Preferred Plus	$30,000-$99,999	25%
Preferred Honors	$100,000-$999,999	50%
Premier	$1,000,000+	75%

Notice the entry point for the second tier jumped from $20K to $30K. And that coveted 75% bonus? Now you need to be a millionaire.

What This Means for Your Cards

If you have a Bank of America credit card, here’s the real-world impact:

Bank of America Customized Cash Rewards

This card earns 3% back in a category you choose (gas, online shopping, dining, etc.).

With Platinum Honors (old):

• 3% base × 1.75 = 5.25% back

With Preferred Honors (new):

• 3% base × 1.50 = 4.5% back

That’s a 14% reduction in your rewards rate. Compare this to other best credit cards for cash back to see if you’re still getting a good deal.

Bank of America Premium Rewards

This card earns 2% on travel/dining and 1.5% on everything else.

With Platinum Honors (old):

• Travel/dining: 2% × 1.75 = 3.5% back
• Everything else: 1.5% × 1.75 = 2.625% back

With Preferred Honors (new):

• Travel/dining: 2% × 1.50 = 3% back
• Everything else: 1.5% × 1.50 = 2.25% back

Still decent, but noticeably worse. For comparison, our best business credit cards guide shows alternatives with competitive rates.

The Transition Timeline

Don’t panic yet. Bank of America is giving members plenty of time to adjust:

1. May 27, 2026: New program launches, you’re automatically migrated
2. Until your first anniversary after November 2026: You keep your current bonus
3. Three months after that anniversary: Your new bonus kicks in

Example: If your enrollment anniversary is July 2027:

• You keep your 75% bonus until July 2027
• Your tier is reassessed based on your balance
• In October 2027, your new bonus (probably 50% if you’re in the $100K-$1M range) takes effect

This gives you roughly 18-24 months to decide whether to stay or move your money. If you’re considering new cards, read our credit card application strategy guide first.

New Benefits They’re Adding

Bank of America is trying to soften the blow with some new perks:

For All Members

• Cash-back deals from 15,000+ brands (similar to Chase Offers)
• Enhanced fraud monitoring and credit monitoring tools

For Preferred Honors ($100K+)

• Streaming credits: Up to $96/year ($8/month) reimbursed
• Lifestyle benefits: Travel, food, fitness perks (previously for $1M+ only)

For Premier ($1M+)

• Higher streaming credits: Up to $180/year ($15/month)
• Full lifestyle benefits package

The streaming credits are nice but don’t fully offset the rewards cut. $96/year in streaming credits vs. potentially hundreds in lost rewards? Math doesn’t math.

Should You Stay or Go?

Here’s my honest take:

Stay If:

• You’re in the new “Member” tier and just want a simple 10% boost
• You have $1M+ and keep the 75% bonus
• You value the Merrill investing relationship
• The streaming credits + lifestyle benefits matter to you

Consider Leaving If:

• You’re in the $100K-$999K range and losing that 75% bonus hurts
• You’re using BofA cards as your primary earners
• Better options exist (Charles Schwab has a 2.2% card with no tiers)

Do the Math:

Let’s say you spend $30,000/year on a Customized Cash Rewards card (3% category).

With 75% bonus: $30K × 5.25% = $1,575/year With 50% bonus: $30K × 4.5% = $1,350/year Difference: $225/year in lost rewards

Is $225/year worth keeping $100K+ at Bank of America? For some, yes (especially with the Merrill integration). For others, that money could work harder elsewhere.

What About New Cardholders?

If you’re thinking about getting a Bank of America card now, the news isn’t all bad:

• Easier to get bonuses: No $20K minimum anymore
• The 10% base tier is free: Just open a checking account
• Good for casual users: Low maintenance, some benefit

The Bank of America Flying Blue card is still solid for Air France/KLM flyers regardless of this change.

My Take

Bank of America is doing what we’ve seen from every loyalty program lately: lowering barriers while cutting benefits.

The pitch is “more people can join!” but the reality is “we’re paying less to our best customers.”

If you have serious money with BofA and rely on that 75% bonus, you have about 18 months to:

1. Increase your balance to $1M+ (unlikely for most)
2. Accept the 50% bonus and stay
3. Move your money and find better credit card options elsewhere

For casual Bank of America customers, the new 10% baseline boost for just having a checking account is actually a nice perk. It’s the high-balance, high-spend customers who are getting squeezed.

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Bottom Line

The BofA Rewards rebrand brings some welcome changes (easier entry) but comes with a sting (reduced rewards for six-figure accounts). If you’re affected, you have time — but start thinking about your strategy now.

Don’t sleep on this. Mark your calendar for late 2027 when your new rates kick in, and run the numbers on whether Bank of America still deserves your loyalty.

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Related Reads:

• Bank of America Flying Blue Card: 70,000 Miles Offer
• Credit Card Rewards: Common Mistakes to Avoid
• Best Credit Cards for Points in 2026

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Were you affected by these changes? Share your take in the comments!