Best Cash Rewards Card: Bank of America Accelerated Cash Rewards Review

by Sean Chuplis on March 4, 2011

Bank of America Accelerated Cash RewardsDo you need cash back on every day purchases not fitting into a special category? Bank of America gives you 1.25% cash back on all purchases, a rate 25% higher than all other cards I’ve seen. It’s the catch all rewards card in my military credit cards lineup. You can earn higher rates on specialized categories but you might as well get cash back for every day spending.

A penny saved is a penny earned

A Penny Saved is a Penny EarnedAccording to the Department of Labor, the average American spends $50,486 a year. If you use your credit card responsibly and get 1.25% back in the form of rewards you’d earn $631 a year. Most credit cards only offer you 1% cash back on all purchases, a difference of $126 a year in savings.

Disadvantages

Credit card rewards only work if you’re using them as a part of your budget and paying them off in full every month. Credit card companies are hoping you’ll only pay the minimums and carry a balance. Pay them off in full and you’ll capture hundreds of dollars in savings every year.

Final verdict

If you know of a better cash back credit card with no limits please share. This is a great catch all rewards card for spending that doesn’t fit in a specialized category like gas or restaurants. To find a profile and application for Bank of America Accelerated Cash Rewards type it into the search box on CreditCards.com. There’s no annual fee. If you have any experiences with this cash rewards card please share them in the comments below.