5 Things to Know About the Bank of America Premium Rewards Elite Credit Card

The Bank of America® Premium Rewards Elite credit card’s $550 annual fee puts it in direct competition with premium credit cards such as the Chase Sapphire Reserve® and The Platinum Card® from American Express. As to be expected at that price tag, the Premium Rewards Elite card comes with free lounge access and a slew of travel credits. But Bank of America® falls woefully short of its competitors in terms of travel transfer partners: It has none. Cardholders are limited to travel purchases from within Bank of America®’s travel portal.

That restriction may be acceptable to some consumers, especially those entwined in the Bank of America® ecosystem that includes credit cards, bank accounts and investment accounts. But if your goal is to squeeze maximum value out of your credit card rewards, you’ll likely have better luck with another travel card.

Here are five things to know about the Bank of America® Premium Rewards Elite credit card.

» SEE: Best Bank of America® credit cards right now

1. It’s very similar to the Bank of America® Premium Rewards® credit card

The Premium Rewards Elite card has a little sibling in the Bank of America® Premium Rewards® credit card, but you’d be forgiven for thinking that the two cards were twins. They have identical rewards structures, some of the same perks and a similar sign-up bonus. If you already have the Bank of America® Premium Rewards® credit card, you may not need its more expensive counterpart. And if you’re deciding between the two, you’ll have to figure out if the Premium Rewards Elite card’s hefty annual fee is worth the extra perks that it offers compared with the lower-tier version.

Here’s how the two travel cards from Bank of America® compare.

» MORE: Can you justify an annual credit card fee?

2. Credits and perks can make up for the card’s annual fee

It’s possible to completely recoup the Premium Rewards Elite’s annual fee by taking advantage of the card’s travel and lifestyle statement credits worth up to $550 in the first year. (Since the $100 credit toward TSA PreCheck/Global Entry is only valid every four years, you won't be able to recoup the entire annual fee each year you hold the card.) The card also offers luxury perks that may be priceless for frequent travelers. These benefits include:

• Free unlimited airport lounge with a complimentary Priority Pass Membership.

• Benefits at premium hotels such as late checkouts, free daily breakfast for two and automatic room upgrades. 

• Free status upgrades and discounts with Avis, Hertz, National and Audi on demand.

• Travel protections in the event of trip delays, cancellations and interruptions; baggage delay; lost luggage; emergency evacuation and more.

• 24/7 access to a full-service concierge. 

3. Earning and redeeming rewards is fairly simple

The Premium Rewards Elite card’s two-tiered rewards structure is easy to remember: Cardholders earn unlimited 2 points for every dollar spent on travel and dining, and an unlimited 1.5 points per dollar for everything else. Points never expire as long as the account is open and active.

If you’re a Preferred Rewards member, that is, you have a Bank of America® checking account and maintain a three-month average balance of $20,000 across all of your qualifying Bank of America® account and Merrill investment accounts, you get higher rewards rates. Preferred Rewards members get 25%-75% more points on purchases, depending on the amount of money in their Bank of America® deposit and investment accounts.

Redemption options are varied enough to satisfy most consumers. Points may be redeemed for:

• Travel. (More on that in the next section.)

• Cash back in the form of a deposit into a Bank of America® checking or savings account, or a credit to eligible Merrill investment accounts.

• Statement credit.

• Experiences.

• Gift cards.

Points are worth 1 cent each when redeemed for travel, gift cards, experiences through concierge services and cash rewards.

4. Flight redemptions get a 20% discount

You’ll get a 20% discount on the price of airfare when you pay with points and book through Bank of America®’s Travel Center. That means that one point is worth 1.25 cents when redeemed for flights. The Travel Center may be accessed online at bankofamerica.com/travel or through the Premium Rewards Elite concierge service.

Note that if you pay for the flight with a combination of points and cash, you’ll receive a 20% discount only on the points amount.

By comparison, points earned from the $95-annual-fee Chase Sapphire Preferred® Card are worth 1.25 cents each when redeemed for any travel booked through Chase, not just flights. And the $550-annual-fee Chase Sapphire Reserve® gives points a 1.5-cent value for all travel booked through Chase.

5. It lacks transfer partners

Unlike Chase, American Express, Citi and Capital One, Bank of America® doesn’t offer the ability to transfer points to travel partners. And for those passionate about maximizing the value of their points, that's a big letdown. Plus, many travelers are reluctant to book through a third-party travel center and would prefer to book directly with the airline or hotel. With a Bank of America® travel card like the Premium Rewards Elite, the only way to increase the redemption value of points is to book flights through the Travel Center for a 20% discount.

» SEE: 5 best credit card points programs and who they partner with