The Bank of America Customized Cash Rewards Secured Card offers cardholders bonus cash back in customizable spending categories, requiring a minimum security deposit of $200 while targeting consumers with fair credit scores in the mid to high 500s.
Secured Card Structure and Deposit Requirements
As reported by nerdwallet.com, the Bank of America® Customized Cash Rewards secured credit card requires a minimum refundable security deposit of $200, scaling up to a maximum of $5,000 depending on credit approval. This deposit establishes the account’s credit limit. Unlike many competing secured cards that offer zero rewards, this product grants bonus cash back on consumer-selected spending categories from a broad list of options.
Spending Caps and Reward Tier Structures
Cardholders earn 6% cash back in the first year on a chosen bonus category, alongside 2% back at grocery stores and wholesale clubs, according to nerdwallet.com. After the first year, the primary bonus drops to 3%. Both tiers apply to a combined spending cap of $2,500 per quarter across the bonus category, grocery stores, and wholesale clubs. Spending exceeding that quarterly threshold earns 1% back.
Bonus category choices include online shopping (covering cable, streaming, internet, and phone plans) as well as home improvement and furnishings. Account holders can modify their chosen category once per calendar month through digital banking platforms.
Additional reporting outlines that the card carries an ongoing variable APR of 27.74% and a 3% foreign transaction fee. Notes that for clients enrolled in the Bank of America Preferred Rewards program, cash-back yields can scale higher based on tier status, reaching up to 5.25% for Platinum Honors members.
| Card Metric | First Year Terms | Ongoing Terms (After Year One) |
|---|---|---|
| Chosen Bonus Category | 6% back | 3% back |
| Grocery & Wholesale Clubs | 2% back | 2% back |
| Quarterly Spending Cap | $2,500 combined limit | $2,500 combined limit |
| All Other Purchases | 1% back | 1% back |
Redemption Options and Eligibility Hurdles
Accumulated cash back can be redeemed as a statement credit, deposited directly into eligible Bank of America checking, savings, or Merrill accounts, or applied toward purchases at Amazon.com and PayPal. Cardholders may also contribute rewards to a qualifying Merrill 529 account or request a physical check starting at $25.
However, securing the account presents a notable barrier. As highlighted by nerdwallet.com, applicants generally need a fair credit score sitting in the mid to high 500s to qualify. This leaves out consumers with poor or no credit histories who would otherwise benefit most from a secured credit product. Furthermore, higher spenders may find the quarterly $2,500 cap restrictive.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
