Bank of America's New BofA Rewards Program: What Changes for Your Credit Card Rewards in 2026

Bank of America just announced that its Preferred Rewards program is being replaced by a new loyalty program called BofA Rewards, effective May 27, 2026. If you hold any BofA credit card (or have been considering one), this matters.

As someone who has built two entire strategies around BofA's Platinum Honors tier (our Costco stacking strategy and our online shopping strategy), I had to dig into the details. The short version: the new program opens the door to 30 million more customers, but squeezes the rewards for those of us in the $100k to $999k balance range.

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What Is BofA Rewards?

BofA Rewards is a four-tier loyalty program that replaces the old Preferred Rewards structure. It offers credit card bonuses, subscription credits, cash-back merchant deals, and identity monitoring perks.

The biggest structural change is that anyone with an eligible Bank of America checking account can join, even with no investment balance at all. Under the old program, you needed at least $20,000 in combined balances to qualify for the lowest tier. Now you start at the Member tier automatically.

One important caveat: BofA calls this a "no fee" loyalty program, but the requirement for an eligible checking account means you may be on the hook for monthly maintenance fees if you don't meet the waiver requirements (typically a minimum daily balance or qualifying direct deposits).

New Tiers vs Old Tiers

Here is how the old Preferred Rewards tiers map to the new BofA Rewards tiers.

Old Tier	New Tier	Balance Required	Card Bonus
(none)	Member	Under $30k	10%
Gold (25%)	Preferred Plus	$30k to $99k	25%
Platinum (50%)	Preferred Plus	$30k to $99k	25%
Platinum Honors (75%)	Preferred Honors	$100k to $999k	50%
Diamond Honors (75%)	Premier	$1M+	75%

The critical line to focus on is the old Platinum Honors tier. If you hold $100,000 to $999,999 in qualifying balances, your credit card bonus drops from 75% to 50%. That is a meaningful cut.

The qualifying balance is still calculated as a 3-month average across eligible Bank of America and Merrill accounts.

What This Means for Your Credit Card Rewards

Let's run the math on each BofA credit card under the new tier structure.

Customized Cash Rewards

This is the card at the center of our Costco stacking strategy and online shopping strategy. Base earn rates are 3% in your chosen category, 2% at grocery stores and wholesale clubs, and 1% on everything else (with a $2,500 per quarter cap on the 3% and 2% categories combined).

Tier	3% Category	2% Grocery/Wholesale	1% Everything Else
Member (10%)	3.30%	2.20%	1.10%
Preferred Plus (25%)	3.75%	2.50%	1.25%
Preferred Honors (50%)	4.50%	3.00%	1.50%
Premier (75%)	5.25%	3.50%	1.75%

If you were earning 5.25% on your chosen category under the old Platinum Honors tier with $100k in balances, you will now earn 4.50% under Preferred Honors. That is a 14.3% reduction in your category rewards.

Unlimited Cash Rewards

A simple flat-rate card with 1.5% cash back on all purchases and no spending cap. Here is how the tiers change the effective rate.

Tier	Effective Cash Back
Member (10%)	1.65%
Preferred Plus (25%)	1.875%
Preferred Honors (50%)	2.25%
Premier (75%)	2.625%

Under the old Platinum Honors tier, this card delivered 2.625% unlimited cash back, which was one of the best flat-rate returns available. At the new Preferred Honors level, it drops to 2.25%. On $100,000 of annual spending, that is $375 less per year.

Premium Rewards

Base earn of 2 points per dollar on travel and dining, 1.5 points per dollar on everything else.

Tier	Travel and Dining	Everything Else
Member (10%)	2.2x	1.65x
Preferred Plus (25%)	2.5x	1.875x
Preferred Honors (50%)	3.0x	2.25x
Premier (75%)	3.5x	2.625x

Travel Rewards

Base earn of 1.5 points per dollar on all purchases.

Tier	Effective Earn Rate
Member (10%)	1.65x
Preferred Plus (25%)	1.875x
Preferred Honors (50%)	2.25x
Premier (75%)	2.625x

Who Wins and Who Loses

Winners: New low-balance enrollees. If you have a BofA checking account but never qualified for Preferred Rewards because you didn't meet the $20,000 minimum, you now get a 10% credit card bonus automatically at the Member tier. This is a genuinely good expansion. Bank of America says it opens the program to over 30 million additional clients.

Winners: The ultra-high-balance crowd. If you have $1 million or more in qualifying balances, you keep the 75% bonus and gain new perks like up to $180/year in subscription credits.

Losers: The $100k to $999k crowd. This is the painful one. If you built your card strategy around the 75% Platinum Honors bonus (as many of our readers have), your multiplier drops to 50%. For a household earning 5.25% at Costco through our stacking strategy, that drops to 4.50%. The math still works, but the gap over simpler alternatives narrows.

Losers: Old Gold and Platinum members. If you held $20,000 to $49,999, you previously got either a 25% or 50% bonus depending on your exact balance. Under the new structure, you need at least $30,000 for Preferred Plus (25%). Anyone between $20,000 and $29,999 drops to the Member tier at 10%.

New Perks That May Offset the Cut

BofA Rewards introduces several perks that did not exist under Preferred Rewards. Whether they offset the reduced credit card bonus depends on your spending patterns.

Subscription Credits. Preferred Honors members can earn up to $96 per year ($8/month) in credits toward qualifying subscription services. Premier members can earn up to $180 per year ($15/month). These are credits applied when you pay for eligible subscriptions with a BofA card.

Cash-Back Merchant Deals. Access to over 15,000 brands offering cash-back deals through the BofA app. Think of it as a built-in cash-back portal similar to Rakuten.

Enhanced Identity Monitoring. Expanded fraud and identity monitoring tools available to all BofA Rewards members, with additional features at higher tiers.

Lifestyle Benefits. Preferred Honors and Premier members get access to additional lifestyle perks, though BofA has not released full details yet.

For the $100k to $999k crowd losing 25 percentage points of credit card bonus, the $96/year in subscription credits is a partial offset at best. On the other hand, if you already pay for streaming services with your BofA card, it is essentially free money you weren't getting before.

What Happens to Existing Members

If you are currently enrolled in Preferred Rewards, your transition will happen automatically on or about May 26, 2026. Here is the mapping.

Current Tier	New Tier
Gold	Preferred Plus
Platinum	Preferred Plus
Platinum Honors	Preferred Honors
Diamond Honors	Premier

Bank of America has confirmed a transition period of at least six months for members whose benefits change. During this period, you will continue to receive your current tier's benefits while BofA moves you to the new structure. After the transition period ends, your new tier takes full effect.

Balance reviews happen daily during the first 30 days after enrollment, with benefits activating within 30 days. Upgrades happen automatically when your qualifying balances rise above a new tier's threshold.

What About Business Preferred Rewards?

Bank of America's Preferred Rewards for Business program remains unchanged for now. BofA has said more details will come later, but no changes have been announced. If your BofA card strategy runs through business accounts, you can breathe easy for the time being.

What To Do Next

Here is a practical action checklist based on where you stand.

If you hold $100k to $999k in BofA/Merrill accounts:

1. Run the optimizer to see how your BofA card setup compares to alternatives under the new 50% bonus.
2. Revisit our Costco stacking strategy and online shopping strategy. The strategies still work, but the margins are thinner.
3. Evaluate whether moving assets to hit the $1M Premier threshold is realistic for your financial situation.
4. Check whether BofA's new subscription credits apply to services you already pay for.

If you are new to BofA and considering their cards:

1. Open an eligible checking account to enroll in BofA Rewards at the Member tier.
2. Run the optimizer to see if the 10% baseline bonus makes BofA cards competitive for your spending profile.
3. Consider the Customized Cash Rewards card, which delivers 3.30% on your chosen category at the Member tier with no annual fee.

If you hold $1M+ in qualifying balances:

1. Confirm your Diamond Honors status will transition to Premier. You keep the 75% bonus and gain new perks.
2. Look into the $180/year subscription credit. It is a new benefit worth claiming.

The BofA Rewards program launches May 27, 2026. We will update our strategies and optimizer data as we learn more about the program's details. In the meantime, run your numbers through the optimizer to see where your card setup stands today.

Frequently Asked Questions

Is BofA Rewards free to join?

BofA calls it a "no fee" loyalty program, but you need an eligible Bank of America checking account, which can carry monthly maintenance fees if you don't meet waiver requirements.

When does BofA Rewards launch?

May 27, 2026. Current Preferred Rewards members will be transitioned automatically.

What is the biggest credit card rewards change?

The 75% credit card bonus now requires $1M+ in qualifying balances (Premier tier). The $100k to $999k tier drops from 75% to 50%.

What happens to existing Preferred Rewards members?

Gold and Platinum map to Preferred Plus. Platinum Honors maps to Preferred Honors. Diamond Honors maps to Premier. There is a transition period of at least six months.