The Merrill Edge Preferred Rewards program gives Bank of America customers up to a 75% bonus on credit card rewards, savings rate boosts, and mortgage discounts — all tied to how much you hold across your BofA deposit accounts and Merrill Edge investing accounts. At the Platinum Honors tier ($100,000 combined), a 3% cash-back card effectively becomes a 5.25% card. For anyone already saving or investing at scale, Preferred Rewards is one of the most financially rewarding loyalty programs available from any bank.
The key number: At $100,000 in combined balances, your BofA credit card cash back increases by 75% on every purchase — permanently, for as long as you maintain the tier.
Preferred Rewards Tiers at a Glance
| Tier | Combined Balance Required | Credit Card Bonus | Savings Rate Boost |
|---|---|---|---|
| Gold | $20,000 | +25% | +0.05% APY |
| Platinum | $50,000 | +50% | +0.10% APY |
| Platinum Honors | $100,000 | +75% | +0.20% APY |
| Diamond | $1,000,000 | +75% | +0.20% APY |
| Diamond Honors | $10,000,000 | +75% | +0.20% APY |
Your combined balance includes all Bank of America checking, savings, and money market accounts plus all Merrill Edge self-directed and Merrill Lynch wealth management accounts. A $60,000 checking account plus $40,000 Merrill Edge portfolio = $100,000 combined = Platinum Honors.
What the 75% Credit Card Bonus Actually Means
The bonus multiplies your base cash-back rate. With the Bank of America Customized Cash Rewards card (3% in a chosen category, 2% at grocery/wholesale clubs, 1% everywhere else):
| Purchase Type | Base Rate | Gold (+25%) | Platinum (+50%) | Platinum Honors (+75%) |
|---|---|---|---|---|
| Chosen category | 3.0% | 3.75% | 4.50% | 5.25% |
| Grocery / wholesale | 2.0% | 2.50% | 3.00% | 3.50% |
| Everything else | 1.0% | 1.25% | 1.50% | 1.75% |
Worked Example: $30,000 Annual Card Spending
Suppose you spend $30,000 per year on the Customized Cash Rewards card: $5,000 in the 3% chosen category (e.g., online shopping), $8,000 at grocery stores, and $17,000 on everything else.
| Category | Spending | Base Rewards | Platinum Honors Rewards |
|---|---|---|---|
| Chosen category (3%) | $5,000 | $150 | $262.50 |
| Grocery (2%) | $8,000 | $160 | $280.00 |
| All other (1%) | $17,000 | $170 | $297.50 |
| Total | $30,000 | $480 | $840 |
The 75% Platinum Honors bonus adds $360 per year in extra cash back on the same spending. Over 10 years, that is $3,600 in additional rewards — simply for holding your investments at Merrill Edge rather than another brokerage.
Additional Preferred Rewards Benefits by Tier
Credit card bonuses get the headlines, but Preferred Rewards includes additional benefits that add real value:
| Benefit | Gold | Platinum | Platinum Honors |
|---|---|---|---|
| Credit card cash-back bonus | +25% | +50% | +75% |
| Savings account rate boost | +0.05% APY | +0.10% APY | +0.20% APY |
| Free small safe deposit box | ✓ | ✓ | ✓ |
| No-fee wire transfers | — | ✓ | ✓ |
| Free standard checks | — | ✓ | ✓ |
| Mortgage origination fee discount | — | — | $200 off |
| Home equity rate discount | — | — | 0.125% off |
| Free financial advisor consultations | — | — | ✓ |
| Merrill Guided Investing fee waiver | — | — | $0 (normally 0.45%) |
The Platinum Honors fee waiver on Merrill Guided Investing is notable: if you use the robo-advisor service, the 0.45% annual management fee is eliminated entirely — saving $450 per year on a $100,000 robo-advisor account.
How Qualification Works
Bank of America measures your eligibility using a three-month average daily balance. This means:
- Your checking, savings, and Merrill investing balances are averaged daily over the prior three calendar months
- Once you hit a tier’s threshold, you qualify at the end of that month
- Benefits activate within 30 days of qualification
- Your tier is locked for 12 months — a temporary dip in your balance does not drop your tier mid-year
Practical implication: If you plan to invest a lump sum to qualify, it needs to be in place for at least one full month before the average catches up. Moving $80,000 into Merrill Edge in December means you may not fully qualify for Platinum until March of the next year.
Is Preferred Rewards Worth It?
Reach for Gold ($20,000) if:
You have a BofA checking account with a modest balance plus a growing Merrill Edge IRA. The +25% bonus costs nothing extra and improves your credit card returns immediately.
Reach for Platinum ($50,000) if:
You have an emergency fund, IRA, and/or taxable brokerage account that naturally adds up to $50,000 across BofA. The +50% bonus meaningfully improves card rewards without requiring you to hold money somewhere artificial.
Stretch for Platinum Honors ($100,000) if:
You have significant savings or a growing investment portfolio. At this level, the +75% bonus on a 3% card category delivers 5.25% cash back — beating nearly every co-branded credit card without an annual fee. The Guided Investing fee waiver and mortgage discount add further value for eligible customers.
Skip Preferred Rewards if:
You bank elsewhere, prefer Fidelity’s ZERO funds or Schwab’s banking integration, or cannot naturally reach the balance thresholds without making suboptimal financial decisions to qualify.
Which Bank of America Credit Cards Work with Preferred Rewards?
| Card | Best Base Rate | At Platinum Honors |
|---|---|---|
| Customized Cash Rewards | 3% chosen category | 5.25% chosen, 3.5% grocery |
| Unlimited Cash Rewards | 1.5% everywhere | 2.625% everywhere |
| Travel Rewards | 1.5 pts everywhere | 2.625 pts everywhere |
| Premium Rewards | 2 pts travel/dining, 1.5 pts other | 3.5 pts travel/dining |
For most people, the Customized Cash Rewards card delivers the most value because the 3% chosen category (online shopping, gas, dining, home improvement, drug stores, or travel) becomes 5.25% at Platinum Honors — which is among the highest single-category rates available anywhere without an annual fee.
Preferred Rewards vs. Competitors
No other major brokerage runs a program quite like Preferred Rewards. The closest alternatives are:
- Fidelity Rewards Visa — 2% cash back on everything, no tier requirement, no banking relationship needed
- Schwab Investor Card — 1.5% unlimited, no tier requirement
- Chase Sapphire Reserve (if banking with Chase) — 3x on travel and dining, $550 annual fee
For a BofA customer who can naturally reach Platinum Honors, Preferred Rewards beats a standalone 2% card on chosen-category spending by 3.25 percentage points (5.25% vs 2%). That gap is worth hundreds of dollars per year.
For full context on Merrill Edge as a brokerage, see the Merrill Edge review. To compare it against the competition, see Schwab vs. Merrill Edge and our best brokerage accounts guide.
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