Bank of America unveils new “responsible rewards” card
Bank of America has introduced a new credit card that rewards customers with up to £100 annually for responsibly managing their monthly credit card payments.
Called BankAmericard Better Balance Rewards, the new card automatically gives customers $25 for every quarter that they pay any amount more than the monthly minimum due and make payments on time. Card customers with a checking, savings or other qualifying account also receive an additional $5 bonus each quarter, meaning that customers can earn up to $120 in cash rewards annually.
“Customers have told us they want a credit card that reinforces good payment practices and recognises them in a straightforward way for responsibly managing their credit,” said Titi Cole, retail products executive at Bank of America. “For consumers who typically pay off credit card balances over time, paying more than the minimum due each month can help pay off debt faster. We also want customers to know that we appreciate their business by rewarding them with an added bonus when they have additional banking relationships with us.”
The card carries the option to have the cash rewards automatically credited to the card balance or deposited into a Bank of America checking or savings account or Merrill Lynch cash management account. There are no annual fees for the card service. For balance transfers, the card charges 3% of each transaction above $10. The card offers 0% APR for 12 billing cycles, after which the rate is 11.99 to 21.99%.
Last month, a report by Simon-Kucher & Partners study found that some 86% of consumers in the UK could be dissuaded from switching their bank by a one-off gift of up to £100, better interest rate on savings, or better interest on their current account.
However, separate research carried out by BT earlier this year across six nations including the US, Hong Kong, the UK, France, Germany and Spain indicated that the services most valued by customers are good online banking facilities, the presence of a local branch and the ability to access banking services 24/7. The most requested improvements were more sophisticated online tools such as peer review sections, web chat facilities and ‘compare my bank’ services to give them better information and help them make informed decisions.