Bank of America Slashes Preferred Rewards Bonuses, Raises Eligibility Requirements

Bank of America has announced significant changes to its popular Preferred Rewards program that will substantially reduce benefits for many members while raising the bar for premium tier eligibility. The changes, which take effect May 26, 2026, represent one of the most dramatic overhauls to a major bank's loyalty program in recent years.

Major Benefit Reductions Across Tiers

The most impactful change affects the Platinum tier, where the credit card bonus will be cut in half from 50% to 25%. This reduction will directly impact thousands of customers who rely on the enhanced earning rates to maximize their credit card rewards.

Even more dramatically, the program's highest bonus tier has been restructured entirely. The 75% bonus, which previously required $100,000 in qualifying assets, will now demand a substantial $1 million minimum to achieve the same benefit level. This ten-fold increase in requirements effectively prices out the vast majority of current members from accessing the program's most lucrative rewards.

The changes create a new earning structure where customers who previously enjoyed premium benefits will find themselves in lower tiers with significantly reduced bonuses. According to Bank of America, existing Platinum members will be automatically moved to the newly configured Preferred Plus status tier, resulting in their bonus dropping from 50% to 25% when the changes take effect.

Timeline and Transition Period

Bank of America is providing existing members with a transition period to maintain their current benefits. Members enrolled in the program before the announcement can keep their existing status and bonus rates until their first enrollment anniversary after November 2026. At that point, their tier will be reevaluated based on their account balances under the new requirements.

This grace period gives current members between eight months to over a year to adjust their banking relationships or take advantage of their existing benefits before the changes fully impact their accounts. However, new enrollees after May 26, 2026, will immediately be subject to the revised tier structure and reduced bonuses.

Business Program Remains Unchanged

In a notable exception to the sweeping changes, Bank of America confirmed that the business version of Preferred Rewards will remain unchanged. This means business banking customers will continue to enjoy the current tier structure and bonus rates that personal banking customers are losing.

This distinction could drive some customers to explore business banking relationships with Bank of America as an alternative way to maintain higher reward rates, though business accounts typically require legitimate business activity and come with their own set of requirements and restrictions.

Impact on Credit Card Strategy

The Preferred Rewards program has long been a cornerstone of Bank of America's credit card value proposition. The bonus percentages apply to all Bank of America credit card purchases, effectively boosting the earning rates across their entire portfolio of cards. For example, a card that typically earns 1.5% cash back would earn 2.25% cash back for Platinum members under the current 50% bonus structure.

With the reduction to a 25% bonus, that same card would only earn 1.875% cash back for affected members – a meaningful decrease that could influence cardholders' spending patterns and loyalty to the Bank of America ecosystem.

The changes also impact the competitive landscape for premium banking relationships. Other major banks offering similar programs may now have an advantage in attracting high-net-worth customers who value enhanced credit card earning rates.

Asset Requirements and Customer Segmentation

The new $1 million threshold for the highest tier bonus represents a clear shift toward serving ultra-high-net-worth customers exclusively at the premium level. This requirement includes qualifying deposits and investments held across Bank of America and Merrill accounts, but the barrier is still substantial enough to exclude the vast majority of retail banking customers.

The restructuring suggests Bank of America is prioritizing profitability and customer segmentation over broad-based loyalty program participation. Customers with smaller account balances will find significantly less value in the program, potentially driving them to competitors with more accessible premium tiers.

What This Means for Cardholders

Current Preferred Rewards members should take immediate action to understand how these changes will affect their specific situation. Platinum tier members will see their credit card bonuses cut in half when the transition period ends, representing a substantial reduction in earning potential.

Members should calculate their current annual bonus earnings to understand the dollar impact of these changes. For heavy credit card users, the reduction could amount to hundreds or even thousands of dollars in lost rewards annually.

Those close to higher asset thresholds may want to consider consolidating additional accounts with Bank of America before the changes take effect, though the new $1 million requirement will be out of reach for most customers.

Business banking customers should explore whether transitioning some of their banking relationship to business accounts makes sense, given that the business program remains unchanged.

Finally, all affected members should evaluate whether Bank of America's credit cards will still offer competitive value after the program changes. With reduced bonuses, other banks' credit cards may become more attractive options for maximizing rewards on everyday spending.

The changes represent a significant shift in Bank of America's customer value proposition and may signal broader industry trends toward more restrictive premium banking benefits.