Bank of America Premium Rewards credit card vs. Chase Sapphire Preferred
Key takeaways
- Choosing between the Chase Sapphire Preferred® Card and the Bank of America® Premium Rewards® credit card can be difficult, as both are good choices if you’re looking for a travel card with an annual fee under $100.
- The Bank of America card may be a better choice if you bank with Bank of America or Merrill and meet the criteria for one of the Bank of America Preferred Rewards tiers.
- The Chase Sapphire Preferred card, on the other hand, could come out ahead if you plan to travel a lot and take advantage of higher-value redemptions with Chase Ultimate Rewards travel partners.
If you want to add a travel credit card to your wallet without paying a high annual fee, both the Bank of America® Premium Rewards® credit card and the Chase Sapphire Preferred® Card deserve your consideration.
As you compare the two, you may discover one of the cards is a better fit for your spending patterns and financial goals. For example, the Bank of America Premium Rewards card will handsomely reward you if you also carry a high balance in your Bank of America or Merrill savings account. On the other hand, using the Chase Sapphire Preferred could really pay off if you use it to book travel through Chase Travel℠ or plan to transfer your points to a high-value transfer partner.
We’ve carefully reviewed the details of both options. So, keep reading to see which one makes the most sense for you.
Main details
| Cards | Bank of America® Premium Rewards® credit card | Chase Sapphire Preferred® Card |
|---|---|---|
| Welcome bonus | 60,000 online bonus points after spending $4,000 on purchases in the first 90 days | 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening; for a limited time, get up to $300 in statement credits on Chase Travel purchases during the first year |
| Rewards rate |
|
|
| Annual fee | $95 | $95 |
| Foreign transaction fees | None | None |
Bank of America Premium Rewards vs. Chase Sapphire Preferred highlights
Chase Sapphire Preferred® Card
Chase Sapphire Preferred® Card
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Which card earns the most?
Under most circumstances, you’ll earn the most rewards using the Chase Sapphire Preferred. But let’s look at an example scenario to see.
Bank of America Premium Rewards vs. Chase Sapphire Preferred spending example
In a given month, let’s say you use your Bank of America Premium Rewards card to pay for $500 in dining purchases, $1,000 in travel purchases and $1,000 on everything else. The dining and travel categories earn you 2X points (without any Preferred Rewards tier bonuses), so you’ll earn 3,000 points for those purchases. You’ll also earn 1,500 points for your other charges (at 1.5X points per dollar spent). Since points are worth 1 cent each, you’ll have earned $45 in rewards.
Now, imagine using your Chase Sapphire Preferred to pay for the same expenses. The dining category gets you 3X points, so you’ll earn 1,500 points for eating out. Travel not booked through the Chase Travel platform earns 2X points (2,000 points), and all other purchases earn you 1X points (1,000 points), for a total of 4,500 points. Assuming a point value of 1 cent apiece, you’ll receive $45 in rewards.
However, if you use the travel portal to book your trip, you’ll get 5,000 points instead of 2,000. Then, if you redeem those points through the platform later, they’ll be worth 1.25 cents each, or $62.50. That means, by using the Chase Travel portal, your $1,000 travel purchase could earn you more in rewards than all of your Bank of America Platinum Rewards card monthly spending combined.
However, let’s say you’re a Bank of America Preferred Rewards member at the Platinum Honors tier. You’ll earn 3.5X points on dining and travel purchases (5,250 points) and 2.62X points on all other spending (2,620 points). So, with points valued at 1.0 cents each, you’ll earn $78.70 in rewards.
Still, the total value of your Chase Sapphire Preferred rewards when redeemed through Chase Travel — is $93.75 (7,500 total points at a value of 1.25 cents each), beating out the Bank of America Preferred Rewards card. Even better, by transferring your points to high-value travel partners, they could be worth an average of 2.0 cents each. That would equal a total value of $150, which is nearly double the amount of value you could get from your Bank of America rewards — even if you’re a Platinum Honors Preferred Rewards member.
Why you should get the Bank of America Premium Rewards
The Bank of America Premium Rewards card is a good travel rewards card that can be worth it for travel lovers, especially those who are already part of the Bank of America Preferred Rewards program. In addition to solid earnings on travel and dining purchases, here are some more benefits you should consider.
Why you should get the Chase Sapphire Preferred
The Chase Sapphire Preferred has long been considered one of the best travel cards available. Although this card comes with a $95 annual fee, the card’s earnings rate and the 25 percent bonus value added to your points when redeemed through the Chase Travel portal definitely make this card worth having in your wallet. Here are some other reasons to consider the Chase Sapphire Preferred.
The bottom line
If you’re a loyal Bank of America or Merrill customer with a significant deposit or investment account balance, the Bank of America Premium Rewards card could be the right option for you. But, if you plan to book a lot of travel (particularly through the Chase Travel platform), the Chase Sapphire Preferred will likely suit you best.
However, you may want to consider getting both cards. That way, you can take advantage of both sets of perks.
The information about the Bank of America® Premium Rewards® credit card was last updated on Oct. 15, 2024.
