Why I’m Switching From the Chase Sapphire Reserve to the Bank of America Premium Rewards Credit Card

A Chase loyalist concedes that the Bank of America Premium Rewards credit card is best for everyday spending.

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The Chase Sapphire Reserve® has been among the best travel credit cards for many travelers since its launch in 2016. The Sapphire Reserve is still an excellent travel rewards card with valuable benefits, but I think there’s a new sheriff in town — the Bank of America® Premium Rewards® credit card.

Over the last couple of years, several new top rewards credit cards have launched and even more have updated their benefits to compete with Chase. One of these new and improved cards is the Premium Rewards credit card. It has a low annual fee, annual travel credit and up to 3.5x points per dollar spent on your purchases. (More on that later in the article.) Here’s why it offers tremendous value without the expense of a high annual fee.

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Bank of America Offers 50,000 Point Sign-Up Bonus for the Premium Rewards Card

Sign-up bonuses only happen when you open an account. However, they’re still an important factor when deciding which new credit card to apply for. The Premium Rewards credit card gives new applicants a 50,000 sign-up bonus after spending at least $3,000 in purchases within the first 90 days.

These 50,000 points are worth an incredible $500! And you’re not restricted in how you use it. The points can be redeemed for cash, statement credits, gift cards or travel.

Premium Rewards Card Earns Up to 3.5x Points on Travel and Dining

All cardholders earn 2x points per dollar spent on travel and dining plus 1.5x points on all other purchases. There is no limit to how many points you earn. And your points do not expire as long as your account remains open and in good standing. When traveling internationally, you won’t be charged foreign transaction fees on your purchases.

The real value comes when you become a client, rather than just a customer, of Bank of America. As a Bank of America Preferred Rewards member, the larger your relationship with the bank, the more rewards you will receive. The Preferred Rewards Gold tier starts at $20,000 (three-month average) in combined average balances between your Bank of America checking, savings, CD accounts and Merrill Lynch investments. While the highest tier known as Platinum Honors begins at $100,000 in combined balances.

When you’re enrolled in Preferred Rewards, you’ll earn an extra 25% to 75% additional points on every purchase. For example, as a Platinum Honors member, you’ll earn 3.5x points for every dollar you spend on travel and dining plus 2.62x points for all other charges.

The points you earn can be redeemed for cash back, statement credits or booking travel at the Bank of America Travel Center.

Annual $100 Airline Incidental Credits

Airline fees are becoming a way of life as airlines shift to a la carte pricing. The Premium Rewards credit card has you covered when those fees pop up. You will be reimbursed up to $100 in airline incidental fees each year. Fees eligible for reimbursement include nuisance fees like those for checked bags, ticket changes or cancellations. As well as fees for things you actually want to spend money on. This includes preferred seating upgrades, onboard food and beverages, in-flight entertainment and airport lounge access.

Additionally, you’ll be reimbursed up to $100 for Global Entry or TSA Pre✓® application fees. This benefit is available to be used once every four years. Expedited screening from this valuable membership will save you time at the airport. You’ll breeze through security upon departure (TSA Pre✓®). Then bypass long lines at customs when arriving home from an international trip (Global Entry).

Bank of America Premium Rewards Card Benefits

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Comparison Between Bank of America Premium Rewards and Chase Sapphire Reserve

The Premium Rewards credit card can earn a lot of points for people who qualify for Preferred Rewards. When you compare those earning rates against the Chase Sapphire Reserve (3x points on travel and dining; 1x points for everything else), Bank of America’s Preferred Rewards seem much better.

However, for a true apples-to-apples comparison, remember that Bank of America Premium Rewards points are worth just one cent each. While Chase Ultimate Rewards points are worth up to 1.5 cents each when redeemed for travel. And those points are potentially worth much more when transferred to hotel and airline partners, such as Hyatt, Marriott, United and Emirates.

Although the Chase Sapphire Reserve earns a bit more on travel and dining, the Premium Rewards credit card earns considerably more on everything else (up to 2.62 cents per dollar spent vs. up to 1.5 cents). For that reason, the it’s a better choice for everyday purchases.

The Bottom Line: Bank of America Premium Rewards Card Review

Premium credit cards with large annual fees often require a lot of spending to justify paying so much money. The Bank of America Premium Rewards credit card has a reasonable $95 annual fee that offers valuable benefits to cardholders. You’ll receive a large sign-up bonus the first year, an unlimited 2x points on travel and dining purchases, TSA Pre✓® or Global Entry reimbursement, and $100 every year in airline incidental fee credits.

Bank of America Preferred Rewards members receive up to a 75% bonus on all of the points they earn. This means earning rewards up to 3.5x points on purchases. For my money, the Premium Rewards credit card benefits are hard to beat and just earned a spot in my wallet.

>>NEXT: Best Credit Cards for Gas in 2020: Compare Cash Back, Benefits and Sign-Up Bonuses

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Lee Huffman

Lee Huffman spent 18 years in banking and investments and now uses that insider knowledge to write about credit cards, travel, and other personal finance topics. Lee enjoys showing people how to travel more, spend less, and live better through the power of travel rewards. You can connect with him at BaldThoughts.com.

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