Bank of America has updated its Preferred Rewards program and it’s good news. There’s been no devaluation because existing tiers will remain unchanged; the updates simply include a couple of new tiers at the top end.
You can find more information about the existing Gold, Platinum and Platinum Honors tiers here. The changes that have just been launched relate to two new tiers – Diamond and Diamond Honors. Here are the benefits you receive at both of those levels:
You can earn Platinum Honors status with Bank of America Preferred Rewards by having $100,000 with them which can include retirement funds with Merrill Edge. For these two new tiers you’ll need significantly more funds saved with them – $1 million for Diamond status and $10 million for Diamond Honors; that’s based on a three month combined average daily balance.
Unfortunately that doesn’t come with a higher credit card reward bonus as both of these new tiers offer a 75% Rewards Bonus which is the same as Platinum Honors. At 20%, the Savings Rate Booster is the same too.
Where these higher status tiers could be more useful is in different areas. For example, if you have a Home Equity Line of Credit you can get a 0.625% or 0.75% discount for Diamond and Diamond Honors respectively. That’s higher than the 0.375% discount you get from having Platinum Honors status.
Mortgage origination fee or interest rate reduction on mortgages could represent significant savings depending on the size of said mortgage. Platinum Honors comes with a flat $600 reduction in the origination fee, so the percentages on offer for Diamond and Diamond Honors customers could save far more depending on the size of the mortgage. The Platinum Honors benefit is also only available for origination fees, whereas Diamond and Diamond Honors members can apply that discount towards the interest rate itself.
It seems like Lifestyle benefits are the other main enhancement, with savings and/or unique opportunities being available for Diamond and Diamond Honors members in the following categories:
- Luxury Merchandise
- Events & Experiences
- Personal Services