Citi Double Cash vs Bank of America Cash Rewards: Citi wins

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Both cash back cards are designed to reward you for your daily spending. But the Citi® Double Cash Card – 18-month BT offer surpass it Bank of America® Custom Cash Rewards credit card pretty much all over the place. It offers the most rewards for the least expense and hassle, making it a true premium card. But you will need good to excellent credit to qualify.

Why the Citi® Double Cash Card – 18-month BT offer is better

The Citi® Double Cash Card – 18-month BT offer offers one of the highest cash back rates you’ll find on a flat rate card. You will earn 2% unlimited cash back on your purchases: 1% cashback when you buy and 1% cashback when you pay. And you don’t need to have a certain investment account – like you do with a competing 2% card like the Visa Signature® Fidelity® Rewards card – to get those big rewards. You just need good to great credit.

The Bank of America® Custom Cash Rewards credit card, on the other hand, is more complicated and brings in fewer rewards.

Citi® Double Cash Card – 18-month BT offer

Bank of America® Custom Cash Rewards credit card

0% introductory APR on balance transfers for 18 months, then the ongoing APR of 13.99% to 23.99% Variable APR

0% introductory APR for 15 billing cycles on purchases and balance transfers, then ongoing APR from 13.99% to 23.99% variable APR

$ 200 cash rewards bonus after making at least $ 1,000 in purchases within the first 90 days of account opening

1% cash back on all purchases + 1% cash back on every dollar paid

3% on the category of your choice 2% in grocery stores and wholesale clubs 1% everywhere else

$ 2,500 in Combined Choice, Wholesale Club and Grocery Category purchases each quarter

If you are a Preferred Rewards member, you can earn 25% to 75% bonus on every purchase

Here is why the Citi® Double Cash Card – 18-month BT offer is the best choice:

You will likely earn more rewards in the first year

With the Bank of America® Custom Cash Rewards credit card, you get a bonus on every purchase – 25%, 50%, or 75% more – if you have combined balances of over $ 20,000 in affiliate accounts and sign up for the Preferred Rewards program.

In other words, instead of getting 3% back on gasoline, you could actually earn 3.75%, 4.5%, or 5.25% on gasoline, depending on your balances. (To learn more about how it works, check out our Favorite rewards page.)

But even if you qualify for this loyalty bonus and earn the signup bonus on the Bank of America® Custom Cash Rewards credit card, you would always be better off with the Citi® Double Cash Card – 18-month BT offer. NerdWallet calculated the cash back a typical family might expect to earn on each card based on average household spending data from the Bureau of Labor Statistics, assuming cardholders would use wholesale clubs. mainly for grocery shopping. The Citi® Double Cash Card – 18-month BT offer comes out slightly early the first year, although it doesn’t have a signup bonus.

You will also earn more rewards in subsequent years – in most cases

When you take a long-term view, the payoff chasm between the two cards only gets deeper. Aside from the sign-up bonus, the Bank of America® Custom Cash Rewards credit card drag him Citi® Double Cash Card – 18-month BT offer in rewards of over $ 100 per year, assuming average household spending.

In fact, the Bank of America® Custom Cash Rewards credit card earns a substantial cash advance of nearly $ 100 on rewards Citi® Double Cash Card – 18-month BT offer only for individuals who have a combined balance of $ 100,000 on their qualifying Bank of America® accounts and who can qualify for the 75% bonus. With the 50% bonus, the rewards are roughly equal to what you would get from the Citi® Double Cash Card – 18-month BT offer.

However, most people cannot claim these larger bonuses. Consider that the median value of a household’s earning assets – including savings accounts, money market deposit accounts, certificates of deposit, and interest-bearing checking accounts – at financial institutions was $ 2,450 in 2011. , according to the most recent data from the US Census Bureau. available.

The median value of a IRA Where Keogh Account the same year – which only about 29% of households said they had in the first place – was $ 34,000.

it’s easier

Bank of America® Custom Cash Rewards credit card the rewards are more complicated due to its spending limits and loyalty bonuses. It caps premiums on combined gasoline and grocery purchases at just $ 2,500 per quarter. You must also maintain certain balances in your accounts to be eligible for Preferred Rewards bonuses.

The Citi® Double Cash Card – 18-month BT offer is less complicated. It offers an unlimited 1% + 1% reward rate across all categories, and you’ll get those bigger rewards no matter how you spend your money or bank with Citi.

The cost of convenience

The Bank of America® Custom Cash Rewards credit card has one big advantage: convenience. If you are banking with Bank of America® and own the card, you would have the benefit of seeing all of your accounts and credit card in one online portal, and that’s definitely useful. But that’s probably not worth $ 100 a year.

Go with the Citi® Double Cash Card – 18-month BT offer is a better choice in almost all cases, even if it means keeping your accounts in different places. Track the best rewards, rather than sticking with just one bank, and you’ll save a lot more in the long run.



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