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* Card ratings are based on the opinion of TPG’s editors and are not influenced by the card issuer.

It took me a while to appreciate the value of Bank of America’s credit card offerings. Many have low or nonexistent annual fees, but they lack the perks I’ve always associated with my favorite cards. Rewards earned are also not transferable to airline or hotel programs. Now that I have a better understanding of the Preferred Rewards banking program, I see more of the benefits of having a Bank of America credit card.

Despite the premium in its name, this card isn’t like other products with an annual fee in the $400-$500 range and a ton of benefits. Instead, this card has a lower annual fee of $95 and a more modest selection of benefits. However, it offers great flexibility in redeeming points and can generate excellent earning rates if you can maximize Bank of America’s Preferred Rewards Banking program. We recommend a credit score of at least 670 for this card.

Pros and Cons of the Bank of America Premium Rewards Credit Card

While Bank of America has no published restrictions that apply specifically to earning welcome bonuses, remember that it has the infamous 2/3/4 rule regarding card applications. You can only be approved for two Bank of America cards in a two-month period, three cards in a 12-month period, and four cards in a 24-month period.

Remember that your entire credit profile will be considered, so approval is not guaranteed even if you fall under these numbers. Finally, there are no restrictions in the application terms that you cannot get this bonus if you have a previous card or that you have to wait a certain amount of time before reapplying.

RELATED: Here are the best credit card welcome offers

Bank of America Premium Rewards Credit Card Benefits

• Up to $100 in annual statement credits for qualifying airline incidentals
• Up to $100 statement credit every four years for TSA PreCheck or Global Entry
• Trip delay, interruption and cancellation insurance
• Purchase security
• Auto Rental Collision Damage Waiver

This is a solid set of benefits for a card with a $95 annual fee. As long as you max out the annual airline contingency credit each year, you’ll get positive value from this card. Cardholders also receive certain Visa Signature® benefits, such as access to the Visa Signature Luxury Hotel Collection.

RELATED: 9 Valuable Travel Perks You Can Get With A Credit Card

Earn points on the Bank of America Premium Rewards Credit Card

The real value here is in the Preferred Rewards program. If you’re a Preferred Rewards program member, you can earn 25-75% more points on every purchase, up to an impressive 2.625 points per dollar on non-bonus spend. That’s more than any flat-rate card out there.

Related: Why You Should Get a Fixed-Rate Rewards Credit Card

Redeeming points on the Bank of America Premium Rewards Credit Card

Since points are worth the same no matter what you redeem them for, you won’t be penalized for redeeming them for cash back.

There are a few ways to redeem points:

• Money returned: When your points balance is 2,500 points or more, you can get cash back as a statement credit or deposited into an eligible Bank of America checking or savings, Merrill or 529 college savings account.
• Travel Purchase: You can book flights directly through the Bank of America travel portal. This is a good way to redeem points as you can still earn award miles and elite credit by flying on a paid ticket (it may be better to buy directly from the airline, as you may get a lower fare when booking through the portal) .
• Gift Cards: A final option allows points to be converted into gift cards at popular merchants such as Amazon, Whole Foods and Starbucks. I advise against this. It’s better to buy a gift card with your credit card because you get the purchase protection benefits that way.

You can also convert your points to cash and put them directly into a 529 college savings account. This is an impressive option that can be a great way to prepare for expensive tuition costs for yourself or someone in your family.

And if you’re focused solely on travel rewards, this card can cover travel expenses you can’t redeem miles for, such as offsetting surcharges on award tickets or amazing experiences on the ground.

Hearing that each point costs 1 cent may seem disappointing at first, especially when compared to the value of other points and miles. However, the simplicity of not jumping through hoops or stressing about “maximum redemption value” can be a strong point here.

Related: Getting Started with Points, Miles, and Credit Cards to Travel

What cards compete with the Bank of America Premium Rewards Credit Card?

• If you like the chase: The Chase Sapphire Preferred® Card has an annual fee of $95. It offsets that fee with a complimentary DashPass membership (active through December 31) and up to a $50 statement credit for hotel stays booked through Chase Travel℠. The card earns 5 points per dollar on travel booked through Chase Travel, 3 points on dining and online grocery purchases (except Walmart, Target and Wholesale Club), 2 points on all other travel and 1 point on all other purchases. To learn more, read our full review of the Chase Sapphire Preferred.
• If you like City: This Citi Strata Premier℠ Card (See Rates and Fees) also comes with a $95 annual fee, offset by a $100 discount on eligible hotel stays of $500 or more when booked through Citi Travel. Earn 10 points per dollar on hotel, car rental and attraction bookings through Strata Premier City Travel, 3 points on air travel, 1 point per dollar on other hotel purchases, restaurants, supermarkets, gas stations and electric vehicle charging stations and all others. Purchases To learn more, read our full review of City Strata Premier.
• If you like American Express: This Blue Cash Preferred® Card from American Express There is an initial annual fee of $0 (then $95 per year, see rates and fees). The main benefit of this card is up to $84 in statement credits per calendar year (up to $7 per month) for eligible Disney bundle charges of $9.99 or more per month (registration required; subject to auto-renewal). The card earns 6% cash back (in the form of reward dollars that can be redeemed as a statement credit) at US supermarkets (first $6,000 per year, then 1%) and on select US streaming subscriptions, 3% cash back on transit and gas and other 1% cash back on all purchases. To learn more, read our full Amex Blue Cash Preferred review.

For additional options, take a look at our picks for the best travel cards.

Related: Why the Citi Strata Premier and Rewards+ cards are a great pair

Is the Bank of America Premium Rewards Credit Card Worth It?

Bottom line

If you want a mid-tier card with attractive benefits, the Bank of America Premium Rewards Card is worth considering. While its lack of transfer partners will be a turn-off for many, it still offers good redemption options. As always, weigh it against other mid-tier cards to make sure it’s the right choice for you.

Related: Bank of America Travel Rewards Credit Card Review

For Amex Blue Cash Preferred rates and fees, click here.