Bank of America/Merrill Edge - Preferred Rewards

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ShadowRegent
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by ShadowRegent »

bryanm wrote: Sat Jan 28, 2023 11:16 am So I recently transferred about $100k over to BoA to shoot for Platinum Honors and the CC rewards bonus. My expectation from this thread was that it would take 3 months to get there. Surprisingly, I was granted PH status basically immediately--it now shows that I've been Preferred Rewards member since "February 2023."

Is this expected behavior? Am I now locked in for a year? I had intended to transfer in an extra $10k or so as buffer to deal with market drops, but didn't due to an error on my part. If I'm locked in, seems like I don't have to worry about this for a while?
Did you open a new Merrill Edge account with the brokerage bonus offer? Part of that offer is early enrollment in Preferred Rewards:
Promotional Early Enrollment in Preferred Rewards: Until May 26, 2023, when you enroll in the Preferred Rewards $1000 More Cash Offer, you consent to early enrollment in the Preferred Rewards Program. Once you satisfy the funding requirement for the offer, you will be enrolled in Preferred Rewards within 45 days based on your current balances at that time rather than the usual requirement of three month average combined balances. You also must have or open an eligible Bank of America personal checking Advantage Banking account to be enrolled in Preferred Rewards. All Preferred Rewards benefits available in the tier associated with your combined balance level will be active within 30 days of enrollment.
Source:https://www.merrilledge.com/offers/pr1000
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

anon_investor wrote: Sat Jan 28, 2023 11:29 am
Eno Deb wrote: Sat Jan 28, 2023 11:25 am
anon_investor wrote: Sat Jan 28, 2023 11:07 amTTTXX for 2022 was 96.29% exempt from state/local income tax
Where did you find the percentage? I was looking on Blackrock's web site and couldn't find it. Need it for my tax return. :wink:

BTW, if one is interested in holding ultra-short treasuries at Merrill, the SGOV ETF might be a good alternative. It has a variable NAV of course, but the fluctuations are minimal (besides the dividend accumulation over the month). Once the Fed stops increasing interest rates, ETFs with longer durations (e.g. SHV) will become interesting even for people who need to preserve principal ...
It is listed here on page 2:
https://www.blackrock.com/us/individual ... letter.pdf
Thanks. :sharebeer How do you navigate there on their web page?
bryanm
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by bryanm »

ShadowRegent wrote: Sat Jan 28, 2023 11:31 am
bryanm wrote: Sat Jan 28, 2023 11:16 am So I recently transferred about $100k over to BoA to shoot for Platinum Honors and the CC rewards bonus. My expectation from this thread was that it would take 3 months to get there. Surprisingly, I was granted PH status basically immediately--it now shows that I've been Preferred Rewards member since "February 2023."

Is this expected behavior? Am I now locked in for a year? I had intended to transfer in an extra $10k or so as buffer to deal with market drops, but didn't due to an error on my part. If I'm locked in, seems like I don't have to worry about this for a while?
Did you open a new Merrill Edge account with the brokerage bonus offer? Part of that offer is early enrollment in Preferred Rewards:
Promotional Early Enrollment in Preferred Rewards: Until May 26, 2023, when you enroll in the Preferred Rewards $1000 More Cash Offer, you consent to early enrollment in the Preferred Rewards Program. Once you satisfy the funding requirement for the offer, you will be enrolled in Preferred Rewards within 45 days based on your current balances at that time rather than the usual requirement of three month average combined balances. You also must have or open an eligible Bank of America personal checking Advantage Banking account to be enrolled in Preferred Rewards. All Preferred Rewards benefits available in the tier associated with your combined balance level will be active within 30 days of enrollment.
Source:https://www.merrilledge.com/offers/pr1000
I did. Thanks! All makes sense now.
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anon_investor
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by anon_investor »

Just adding the datapoint that American Airlines eGift Cards still are getting the $100 travel reimbursement. Unfortunately it no longer looks like any trustworthy websites are buying AA eGCs.
CrisisAverted
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by CrisisAverted »

ShadowRegent wrote: Sat Jan 28, 2023 11:31 am
bryanm wrote: Sat Jan 28, 2023 11:16 am So I recently transferred about $100k over to BoA to shoot for Platinum Honors and the CC rewards bonus. My expectation from this thread was that it would take 3 months to get there. Surprisingly, I was granted PH status basically immediately--it now shows that I've been Preferred Rewards member since "February 2023."

Is this expected behavior? Am I now locked in for a year? I had intended to transfer in an extra $10k or so as buffer to deal with market drops, but didn't due to an error on my part. If I'm locked in, seems like I don't have to worry about this for a while?
Did you open a new Merrill Edge account with the brokerage bonus offer? Part of that offer is early enrollment in Preferred Rewards:
Promotional Early Enrollment in Preferred Rewards: Until May 26, 2023, when you enroll in the Preferred Rewards $1000 More Cash Offer, you consent to early enrollment in the Preferred Rewards Program. Once you satisfy the funding requirement for the offer, you will be enrolled in Preferred Rewards within 45 days based on your current balances at that time rather than the usual requirement of three month average combined balances. You also must have or open an eligible Bank of America personal checking Advantage Banking account to be enrolled in Preferred Rewards. All Preferred Rewards benefits available in the tier associated with your combined balance level will be active within 30 days of enrollment.
Source:https://www.merrilledge.com/offers/pr1000
How interesting! I had a very small BofA checking account (less than $10k at all times) before using the same promo at ME and having enough funds to qualify for plat honors status. I did NOT get immediate status. In fact, the preferred rewards page is still telling me that it will notify me when I qualify.
CrisisAverted
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by CrisisAverted »

anon_investor wrote: Sat Jan 28, 2023 11:07 am
bbrock wrote: Sat Jan 28, 2023 11:01 am I see currently:
VUSXX at 4.31% yield, er 0.09%
TTTXX at 4.15% yieldi, er at 0.17%

TTTXX is also state tax exempt, right?
TTTXX for 2022 was 96.29% exempt from state/local income tax, VUSXX was 100%. The difference in the yield is mostly explained by the difference in the ER.

VUSXX is better, but TTTXX is an excellent NTF option at Merrill Edge.

TTTXX at Merrill Edge has the advantage of potentially same day access to funds. VUSXX will likely take at least 1-2 biz days to get access to the funds.
Neat! Do you know where I could find the percentage for FSIXX? I looked the prospectus and screener page but didn't see anything specific to federal obligations percentage. I even called Fidelity and they weren't sure either except to look at the composition and call a tax advisor lol
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

CrisisAverted wrote: Sat Jan 28, 2023 2:58 pmNeat! Do you know where I could find the percentage for FSIXX? I looked the prospectus and screener page but didn't see anything specific to federal obligations percentage. I even called Fidelity and they weren't sure either except to look at the composition and call a tax advisor lol
You'll be able to find it here under "U.S. government securities income" (search the document for "Money Market Treasury Only Portfolio: All Classes"):

https://www.fidelity.com/tax-informatio ... nformation

The letter for 2022 is not yet available. In 2021 it was 99.91%.
CrisisAverted
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by CrisisAverted »

Eno Deb wrote: Sat Jan 28, 2023 3:45 pm
CrisisAverted wrote: Sat Jan 28, 2023 2:58 pmNeat! Do you know where I could find the percentage for FSIXX? I looked the prospectus and screener page but didn't see anything specific to federal obligations percentage. I even called Fidelity and they weren't sure either except to look at the composition and call a tax advisor lol
You'll be able to find it here under "U.S. government securities income" (search the document for "Money Market Treasury Only Portfolio: All Classes"):

https://www.fidelity.com/tax-informatio ... nformation

The letter for 2022 is not yet available. In 2021 it was 99.91%.
Wonderful, thank you!! I assume that the proper dollar figure will reflect as exempt on the 1099-INT or 1099-consolidated so that the tax software automatically knows what amount to exempt for state taxes or is this something we need to manually do when filling out taxes?
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anon_investor
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by anon_investor »

CrisisAverted wrote: Sat Jan 28, 2023 3:50 pm
Eno Deb wrote: Sat Jan 28, 2023 3:45 pm
CrisisAverted wrote: Sat Jan 28, 2023 2:58 pmNeat! Do you know where I could find the percentage for FSIXX? I looked the prospectus and screener page but didn't see anything specific to federal obligations percentage. I even called Fidelity and they weren't sure either except to look at the composition and call a tax advisor lol
You'll be able to find it here under "U.S. government securities income" (search the document for "Money Market Treasury Only Portfolio: All Classes"):

https://www.fidelity.com/tax-informatio ... nformation

The letter for 2022 is not yet available. In 2021 it was 99.91%.
Wonderful, thank you!! I assume that the proper dollar figure will reflect as exempt on the 1099-INT or 1099-consolidated so that the tax software automatically knows what amount to exempt for state taxes or is this something we need to manually do when filling out taxes?
Nope, for MMFs you have to manually adjust it, they don't report it on the 1099. The Fidelity website says the government interest numbers will be release in Feb 2023:
https://www.fidelity.com/tax-informatio ... nformation
boston10
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by boston10 »

anon_investor wrote: Sat Jan 28, 2023 4:23 pm
CrisisAverted wrote: Sat Jan 28, 2023 3:50 pm
Eno Deb wrote: Sat Jan 28, 2023 3:45 pm
CrisisAverted wrote: Sat Jan 28, 2023 2:58 pmNeat! Do you know where I could find the percentage for FSIXX? I looked the prospectus and screener page but didn't see anything specific to federal obligations percentage. I even called Fidelity and they weren't sure either except to look at the composition and call a tax advisor lol
You'll be able to find it here under "U.S. government securities income" (search the document for "Money Market Treasury Only Portfolio: All Classes"):

https://www.fidelity.com/tax-informatio ... nformation

The letter for 2022 is not yet available. In 2021 it was 99.91%.
Wonderful, thank you!! I assume that the proper dollar figure will reflect as exempt on the 1099-INT or 1099-consolidated so that the tax software automatically knows what amount to exempt for state taxes or is this something we need to manually do when filling out taxes?
Nope, for MMFs you have to manually adjust it, they don't report it on the 1099. The Fidelity website says the government interest numbers will be release in Feb 2023:
https://www.fidelity.com/tax-informatio ... nformation
They haven't released the 2022 consumer document, but they have released one for institutional investors, which shows 100% U.S. Government Income for FSIXX. Easiest to search this by CUSIP:

https://institutional.fidelity.com/app/ ... ncome.html
CrisisAverted
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by CrisisAverted »

boston10 wrote: Sat Jan 28, 2023 4:41 pm
anon_investor wrote: Sat Jan 28, 2023 4:23 pm
CrisisAverted wrote: Sat Jan 28, 2023 3:50 pm
Eno Deb wrote: Sat Jan 28, 2023 3:45 pm
CrisisAverted wrote: Sat Jan 28, 2023 2:58 pmNeat! Do you know where I could find the percentage for FSIXX? I looked the prospectus and screener page but didn't see anything specific to federal obligations percentage. I even called Fidelity and they weren't sure either except to look at the composition and call a tax advisor lol
You'll be able to find it here under "U.S. government securities income" (search the document for "Money Market Treasury Only Portfolio: All Classes"):

https://www.fidelity.com/tax-informatio ... nformation

The letter for 2022 is not yet available. In 2021 it was 99.91%.
Wonderful, thank you!! I assume that the proper dollar figure will reflect as exempt on the 1099-INT or 1099-consolidated so that the tax software automatically knows what amount to exempt for state taxes or is this something we need to manually do when filling out taxes?
Nope, for MMFs you have to manually adjust it, they don't report it on the 1099. The Fidelity website says the government interest numbers will be release in Feb 2023:
https://www.fidelity.com/tax-informatio ... nformation
They haven't released the 2022 consumer document, but they have released one for institutional investors, which shows 100% U.S. Government Income for FSIXX. Easiest to search this by CUSIP:

https://institutional.fidelity.com/app/ ... ncome.html
Appreciate it! I am learning so much!
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

CrisisAverted wrote: Sat Jan 28, 2023 3:50 pmWonderful, thank you!! I assume that the proper dollar figure will reflect as exempt on the 1099-INT or 1099-consolidated so that the tax software automatically knows what amount to exempt for state taxes or is this something we need to manually do when filling out taxes?
No. Income from MMFs is reported on a 1099-DIV, but the part from government securities is not separately listed on the form. You need to look up how much dividend the MMF paid (there is usually a breakdown included with the consolidated tax documents, including Merrill's and Fidelity's) and multiply by the percentage from the investor letter to get the dollar amount that is state tax exempt.
Last edited by Eno Deb on Sat Jan 28, 2023 4:57 pm, edited 1 time in total.
CrisisAverted
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by CrisisAverted »

Eno Deb wrote: Sat Jan 28, 2023 4:51 pm
CrisisAverted wrote: Sat Jan 28, 2023 3:50 pmWonderful, thank you!! I assume that the proper dollar figure will reflect as exempt on the 1099-INT or 1099-consolidated so that the tax software automatically knows what amount to exempt for state taxes or is this something we need to manually do when filling out taxes?
No. It's reported on a 1099-DIV, but the income from government securities is not listed. You need to look up how much dividend the MMF paid (this is usually listed in the consolidated tax documents, including Merrill's and Fidelity's) and multiply with the percentage from the investor letter to get the dollar amount that is state tax exempt.
Thanks for this! Looks like there is a little bit of additional leg work that needs to be done when filling out taxes. I assume that the investor letter is going to be sent to all shareholders? Or are shareholders responsible for obtaining the letter from the fidelity website, etc? I also would imagine that the investor letter would somehow need to be included with the text return to justify to the IRS (or state franchise board) why you are reducing your income?

I wonder why it's so difficult for the brokerages to just provide the information already calculated in the tax form?
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

CrisisAverted wrote: Sat Jan 28, 2023 4:54 pm
Eno Deb wrote: Sat Jan 28, 2023 4:51 pm
CrisisAverted wrote: Sat Jan 28, 2023 3:50 pmWonderful, thank you!! I assume that the proper dollar figure will reflect as exempt on the 1099-INT or 1099-consolidated so that the tax software automatically knows what amount to exempt for state taxes or is this something we need to manually do when filling out taxes?
No. It's reported on a 1099-DIV, but the income from government securities is not listed. You need to look up how much dividend the MMF paid (this is usually listed in the consolidated tax documents, including Merrill's and Fidelity's) and multiply with the percentage from the investor letter to get the dollar amount that is state tax exempt.
Thanks for this! Looks like there is a little bit of additional leg work that needs to be done when filling out taxes. I assume that the investor letter is going to be sent to all shareholders? Or are shareholders responsible for obtaining the letter from the fidelity website, etc? I also would imagine that the investor letter would somehow need to be included with the text return to justify to the IRS (or state franchise board) why you are reducing your income?
No, you are responsible for getting it from the web site (see above). You don't have to include it with the tax return, but you may have to produce it in case of an audit.
CrisisAverted
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by CrisisAverted »

Understood, thank you!

I assume there's going to be some sort of box entry that will allow us to put the exempted amount?
Lyrrad
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Lyrrad »

CrisisAverted wrote: Sat Jan 28, 2023 5:16 pm Understood, thank you!

I assume there's going to be some sort of box entry that will allow us to put the exempted amount?
From what I can tell, it's something that is put on your state tax return and can differ from state to state.

In California, based on the instructions, it appears that this interest should be included on Schedule CA (540) as an adjustment to Taxable interest in Section A, Line 2, Column B.
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

CrisisAverted wrote: Sat Jan 28, 2023 5:16 pm Understood, thank you!

I assume there's going to be some sort of box entry that will allow us to put the exempted amount?
Yes. For example, in CA there is a field "Subtractions" in schedule CA(540) where you enter the dollar amount. If you use tax software they might handle it a little differently (e.g. H&R Block asks for a percentage of the dividends reported on each 1099-DIV, which requires some more number crunching if the form reports dividends from multiple investments).

Also, remember that this doesn't only affect MMFs, but also other types of bond funds and bond ETFs that contain state tax exempt income sources.
unmesh
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by unmesh »

I'm thinking of cancelling my Schwab Amex Platinum and going to ME for the Premium Rewards Card combined with Preferred Rewards at the Platinum Honors level.

Are ME Treasury orders in the secondary market of the "limit fill-or-kill at market" type like at Schwab or can you place an order at a limit price away from the market?

And do they let you fund your account with a wire transfer?

Thanks.
CrisisAverted
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by CrisisAverted »

Lyrrad wrote: Sat Jan 28, 2023 5:24 pm
CrisisAverted wrote: Sat Jan 28, 2023 5:16 pm Understood, thank you!

I assume there's going to be some sort of box entry that will allow us to put the exempted amount?
From what I can tell, it's something that is put on your state tax return and can differ from state to state.

In California, based on the instructions, it appears that this interest should be included on Schedule CA (540) as an adjustment to Taxable interest in Section A, Line 2, Column B.
Eno Deb wrote: Sat Jan 28, 2023 5:29 pm
CrisisAverted wrote: Sat Jan 28, 2023 5:16 pm Understood, thank you!

I assume there's going to be some sort of box entry that will allow us to put the exempted amount?
Yes. For example, in CA there is a field "Subtractions" in schedule CA(540) where you enter the dollar amount. If you use tax software they might handle it a little differently (e.g. H&R Block asks for a percentage of the dividends reported on each 1099-DIV, which requires some more number crunching if the form reports dividends from multiple investments).

Also, remember that this doesn't only affect MMFs, but also other types of bond funds and bond ETFs that contain state tax exempt income sources.
Thanks, guys. I fortunately won't have to worry about this until doing 2023 taxes so I hope I can remember these posts next year. It does seem a little bit confusing, but I suppose made worse without having the investor letter and actual tax forms in front of me.
spammagnet
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by spammagnet »

unmesh wrote: Sun Jan 29, 2023 1:21 pm I'm thinking of cancelling my Schwab Amex Platinum and going to ME for the Premium Rewards Card combined with Preferred Rewards at the Platinum Honors level.
Compare the benefits of the $95 Premium Rewards to the $0 Travel Rewards to decide whether it's really worth the fee, for how you will use the card. It may be, for you. Although I do have a Premium Rewards, it's not worthwhile for me. I will downgrade when the anniversary rolls around.
unmesh
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by unmesh »

spammagnet wrote: Sun Jan 29, 2023 6:21 pm Compare the benefits of the $95 Premium Rewards to the $0 Travel Rewards to decide whether it's really worth the fee, for how you will use the card. It may be, for you. Although I do have a Premium Rewards, it's not worthwhile for me. I will downgrade when the anniversary rolls around.
I thought the $100 travel credit on the former made up for the $95 annual fee (assuming one can use it) but I may have misunderstood.
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

unmesh wrote: Sun Jan 29, 2023 6:27 pm
spammagnet wrote: Sun Jan 29, 2023 6:21 pm Compare the benefits of the $95 Premium Rewards to the $0 Travel Rewards to decide whether it's really worth the fee, for how you will use the card. It may be, for you. Although I do have a Premium Rewards, it's not worthwhile for me. I will downgrade when the anniversary rolls around.
I thought the $100 travel credit on the former made up for the $95 annual fee (assuming one can use it) but I may have misunderstood.
The part you put in parentheses is the issue. Personally I almost never pay baggage fees and stuff like that, and I don't want to jump through hoops (like buying and trying to sell gift cards). And I don't fly as often anymore as I used to anyway. So I changed the PR into a TR a while ago, so I still have a card with basic travel protections and no foreign transaction fees, but without the annual fee.

Here's an article about what is and isn't eligible, so check if that is something that works for you:

https://www.doctorofcredit.com/triggers ... el-credit/
unmesh
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by unmesh »

Thanks for the link. I had to do something equivalent with Southwest on Amex Platinum.

Can I use the points retroactively against posted travel credits at the penny-per-point rate? Capital Ventue X gives you 90 days since post date to decide.
Last edited by unmesh on Sun Jan 29, 2023 7:44 pm, edited 1 time in total.
spammagnet
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by spammagnet »

Eno Deb wrote: Sun Jan 29, 2023 6:54 pmHere's an article about what is and isn't eligible, so check if that is something that works for you:

https://www.doctorofcredit.com/triggers ... vel-credit
Thanks for the link. I'll be doing some traveling on UA in a few months so I'll be able to make use of the credit. I may buy some miles.

Edit: Miles are specifically disallowed. I'll buy preferred seating with the Premium Rewards card after buying a ticket with new account bonus miles.

I'll still downgrade to Travel Rewards on the anniversary in June. We don't travel enough in that way to justify the difference.
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

unmesh wrote: Sun Jan 29, 2023 7:19 pmCan I use the points retroactively against posted travel credits at the penny-per-point rate? Capital Ventue X gives you 90 days since post date to decide.
You mean the Travel Rewards card? Then yes. You can redeem the points against travel and dining charges up to 12 months back. It's really easy to do in the app.
spammagnet
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by spammagnet »

unmesh wrote: Sun Jan 29, 2023 7:19 pmCan I use the points retroactively against posted travel credits at the penny-per-point rate?
I just cash them out. There's no difference in value.
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

spammagnet wrote: Sun Jan 29, 2023 8:19 pm
unmesh wrote: Sun Jan 29, 2023 7:19 pmCan I use the points retroactively against posted travel credits at the penny-per-point rate?
I just cash them out. There's no difference in value.
That is true for the Premium Rewards, but when you do that with the Travel Rewards you only get 0.6 cents per point.
spammagnet
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by spammagnet »

Eno Deb wrote: Sun Jan 29, 2023 8:22 pm
spammagnet wrote: Sun Jan 29, 2023 8:19 pm
unmesh wrote: Sun Jan 29, 2023 7:19 pmCan I use the points retroactively against posted travel credits at the penny-per-point rate?
I just cash them out. There's no difference in value.
That is true for the Premium Rewards, but when you do that with the Travel Rewards you only get 0.6 cents per point.
Ouch. That fact, in combinations with possibly being able to mitigate the annual fee with travel credits, may justify that annual fee on the premium. I guess it depends on how much you're going to use it, and redeem points.
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

spammagnet wrote: Sun Jan 29, 2023 9:21 pm
Eno Deb wrote: Sun Jan 29, 2023 8:22 pm
spammagnet wrote: Sun Jan 29, 2023 8:19 pm
unmesh wrote: Sun Jan 29, 2023 7:19 pmCan I use the points retroactively against posted travel credits at the penny-per-point rate?
I just cash them out. There's no difference in value.
That is true for the Premium Rewards, but when you do that with the Travel Rewards you only get 0.6 cents per point.
Ouch. That fact, in combinations with possibly being able to mitigate the annual fee with travel credits, may justify that annual fee on the premium. I guess it depends on how much you're going to use it, and redeem points.
I found the redemption very easy. Given that I primarily use the card for travel purchases, I never had a problem finding eligible charges in the past 12 months to redeem the points against.
Last edited by Eno Deb on Sun Jan 29, 2023 10:03 pm, edited 1 time in total.
spammagnet
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by spammagnet »

Eno Deb wrote: Sun Jan 29, 2023 10:00 pmI found the redemption against qualifying charges for 1 cent/point very easy. Given that I primarily use the card for travel purchases, I never had a problem redeeming the points.
If you travel a lot, it's probably easy to justify. Our travel of the type that we can use for credits is only intermittent. Most of our travel is with a travel trailer in government-owned parks. We don't benefit from the Premium Rewards card with that.
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

spammagnet wrote: Sun Jan 29, 2023 10:03 pm
Eno Deb wrote: Sun Jan 29, 2023 10:00 pmI found the redemption against qualifying charges for 1 cent/point very easy. Given that I primarily use the card for travel purchases, I never had a problem redeeming the points.
If you travel a lot, it's probably easy to justify. Our travel of the type that we can use for credits is only intermittent. Most of our travel is with a travel trailer in government-owned parks. We don't benefit from the Premium Rewards card with that.
Maybe you misunderstood me. The redemptions are not limited to a narrow type of charges like the PR's travel credit. You can redeem the points of the Travel Rewards card against a wide range of travel and also dining charges. For example, in your case campgrounds or RV/trailer rental might be eligible. Or restaurants and takeout food if you don't travel at all. You won't have trouble finding qualifying charges:

"A travel credit is applied as a statement credit to your account to offset travel and dining purchases from qualifying merchants in these travel or dining related categories: airlines, hotels, motels, timeshares, trailer parks, motor home and recreational vehicle rentals, campgrounds, car rental agencies, truck and trailer rental, cruise lines, travel agencies, tour operators and real estate agents, operators of passenger trains, buses, taxis, limousines, ferries, boat rentals, parking lots and garages, tolls and bridge fees, tourist attractions and exhibits like art galleries, amusement parks, carnivals, circuses, aquariums, zoos, eating places and restaurant, drinking places, bars, taverns, cocktail lounges, nightclubs, discotheques and fast food restaurants."
spammagnet
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by spammagnet »

Eno Deb wrote: Sun Jan 29, 2023 10:10 pm... You won't have trouble finding qualifying charges:

"A travel credit is applied as a statement credit to your account to offset travel and dining purchases from qualifying merchants in these travel or dining related categories: airlines, hotels, motels, timeshares, trailer parks, motor home and recreational vehicle rentals, campgrounds, car rental agencies, truck and trailer rental, cruise lines, travel agencies, tour operators and real estate agents, operators of passenger trains, buses, taxis, limousines, ferries, boat rentals, parking lots and garages, tolls and bridge fees, tourist attractions and exhibits like art galleries, amusement parks, carnivals, circuses, aquariums, zoos, eating places and restaurant, drinking places, bars, taverns, cocktail lounges, nightclubs, discotheques and fast food restaurants."
That's broader than I thought. We can't get credit for our camping because they're always government-operated campgrounds (state or national parks). Those charges are ineligible (I've looked) but there apparently are plenty of other uses.

It seems like the free Travel Rewards card can provide as much benefit to me as the Premium Rewards.
OHWantToRetire
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by OHWantToRetire »

I am looking to open Bank of America Accounts to get the Preferred Rewards Status, as they have actually opened a couple of branches here in the greater Cincinnati area. Is there a particular sequence I need to open them in to make this all work, and get the offers? I've been thru this thread a lot, but a lot of info to go thru.

1. Open Checking - will get $100 bonus if I have direct deposit on the account
2. Open ME - With $100K, I get $400, plus it seems immediate Preferred Rewards
3. Open Credit Card to start getting 2.62%

Wasn't sure if I need to do the checking (1) BEFORE the ME (2) or not.

I'd really like to consolidate my banking (I have check writing on like 4 different accounts now) so will really use this as my non-investment bank - bill pay, checking, etc. The extra cash rewards is the bonus.
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anon_investor
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by anon_investor »

Eno Deb wrote: Sun Jan 29, 2023 6:54 pm
unmesh wrote: Sun Jan 29, 2023 6:27 pm
spammagnet wrote: Sun Jan 29, 2023 6:21 pm Compare the benefits of the $95 Premium Rewards to the $0 Travel Rewards to decide whether it's really worth the fee, for how you will use the card. It may be, for you. Although I do have a Premium Rewards, it's not worthwhile for me. I will downgrade when the anniversary rolls around.
I thought the $100 travel credit on the former made up for the $95 annual fee (assuming one can use it) but I may have misunderstood.
The part you put in parentheses is the issue. Personally I almost never pay baggage fees and stuff like that, and I don't want to jump through hoops (like buying and trying to sell gift cards). And I don't fly as often anymore as I used to anyway. So I changed the PR into a TR a while ago, so I still have a card with basic travel protections and no foreign transaction fees, but without the annual fee.

Here's an article about what is and isn't eligible, so check if that is something that works for you:

https://www.doctorofcredit.com/triggers ... el-credit/
I have had the PR for a couple of years now. Selling AA eGCs has used to be a viable option, but no one is buying them anymore. However, I do occationally fly AA, so accumulating AA eGCs is not the end of the world. I did get Global Entry reimbursed so I only need to recoup $70/yr of value to break even. If you can make use of an AA eGC or United Travel Bank credit, then it is definitely worth it.
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by placeholder »

It's been a while since I did it but I recall that you need to link the bank account with merrill edge.
Leesbro63
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Leesbro63 »

Would paying onto an E-Z Pass account qualify for the $100 travel credit?
Lastrun
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Lastrun »

Leesbro63 wrote: Mon Jan 30, 2023 5:00 am Would paying onto an E-Z Pass account qualify for the $100 travel credit?
No, sadly it does not. It is an airline incidental credit. I have used it successfully for United Travel Bank, American egift cards, and have also had it code for flight change fees.

If you dine and travel enough you also get the benefit of the 3.5% reward tier (for those categories) over the 2.625% base spend rate for Preferred Rewards folks.
BashDash
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by BashDash »

Hi!
Quick question: I am trying to make a simple checking account transfer to a different bank? I was surprised to see a 3$ fee. I am a preferred rewards member? Is there a way to get this consistently waived? I am just trying to transfer some of my dividends in my taxable brokerage to a checking account I use for my monthly spending.
stilllurking
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by stilllurking »

BashDash wrote: Mon Jan 30, 2023 9:06 am Hi!
Quick question: I am trying to make a simple checking account transfer to a different bank? I was surprised to see a 3$ fee. I am a preferred rewards member? Is there a way to get this consistently waived? I am just trying to transfer some of my dividends in my taxable brokerage to a checking account I use for my monthly spending.
I typically pull from the other bank or send a Zelle to my bank from BoA
Lastrun
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Lastrun »

stilllurking wrote: Mon Jan 30, 2023 9:40 am
BashDash wrote: Mon Jan 30, 2023 9:06 am Hi!
Quick question: I am trying to make a simple checking account transfer to a different bank? I was surprised to see a 3$ fee. I am a preferred rewards member? Is there a way to get this consistently waived? I am just trying to transfer some of my dividends in my taxable brokerage to a checking account I use for my monthly spending.
I typically pull from the other bank or send a Zelle to my bank from BoA
I have not heard of having this fee waived anywhere. As stilllurking said, you can pull from anywhere, and use Zelle to transfer out. Also note, there is no fee to push from Merrill Edge, so if you have an account there, you can immediately transfer from checking to brokerage and then push from there.
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

Lastrun wrote: Mon Jan 30, 2023 5:29 amIf you dine and travel enough you also get the benefit of the 3.5% reward tier (for those categories) over the 2.625% base spend rate for Preferred Rewards folks.
Tip: get one or two Customized Cash cards for that. Both dining and travel are 5.25% categories with preferred rewards (and online travel bookings usually also trigger the online shopping category).
Marseille07
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Marseille07 »

BashDash wrote: Mon Jan 30, 2023 9:06 am Hi!
Quick question: I am trying to make a simple checking account transfer to a different bank? I was surprised to see a 3$ fee. I am a preferred rewards member? Is there a way to get this consistently waived? I am just trying to transfer some of my dividends in my taxable brokerage to a checking account I use for my monthly spending.
I don't believe you can get the fee waived. However, I think you can ACH out of Merrill Edge for free. This way you don't even have to move $ from ME to BofA before ACHing.
bbrock
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by bbrock »

Eno Deb wrote: Mon Jan 30, 2023 10:19 am
Lastrun wrote: Mon Jan 30, 2023 5:29 amIf you dine and travel enough you also get the benefit of the 3.5% reward tier (for those categories) over the 2.625% base spend rate for Preferred Rewards folks.
Tip: get one or two Customized Cash cards for that. Both dining and travel are 5.25% categories with preferred rewards (and online travel bookings usually also trigger the online shopping category).
Still learning more about this Eno Deb. Will you explain how the 5.25% category selection works? Do you select which categories? Travel and dining are separate? In my mind, I am just comparing it to the Costco Visa which is 3% travel and restaurant. Is the CCR one category or the other (i.e. dining, travel)?
bbrock
Morik
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Morik »

bbrock wrote: Mon Jan 30, 2023 12:08 pm
Eno Deb wrote: Mon Jan 30, 2023 10:19 am
Lastrun wrote: Mon Jan 30, 2023 5:29 amIf you dine and travel enough you also get the benefit of the 3.5% reward tier (for those categories) over the 2.625% base spend rate for Preferred Rewards folks.
Tip: get one or two Customized Cash cards for that. Both dining and travel are 5.25% categories with preferred rewards (and online travel bookings usually also trigger the online shopping category).
Still learning more about this Eno Deb. Will you explain how the 5.25% category selection works? Do you select which categories? Travel and dining are separate? In my mind, I am just comparing it to the Costco Visa which is 3% travel and restaurant. Is the CCR one category or the other (i.e. dining, travel)?
You select one category out of:
Online shopping, gas, dining, drug stores, home improvement & furnishing, travel.
You can change once a month I believe.
You also get 3.5% (with platinum honors 75% boost) cashback on groceries/wholesalers with this card (subject to the same shared $2500/quarter cap).
bbrock
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by bbrock »

Morik wrote: Mon Jan 30, 2023 12:25 pm
bbrock wrote: Mon Jan 30, 2023 12:08 pm
Eno Deb wrote: Mon Jan 30, 2023 10:19 am
Lastrun wrote: Mon Jan 30, 2023 5:29 amIf you dine and travel enough you also get the benefit of the 3.5% reward tier (for those categories) over the 2.625% base spend rate for Preferred Rewards folks.
Tip: get one or two Customized Cash cards for that. Both dining and travel are 5.25% categories with preferred rewards (and online travel bookings usually also trigger the online shopping category).
Still learning more about this Eno Deb. Will you explain how the 5.25% category selection works? Do you select which categories? Travel and dining are separate? In my mind, I am just comparing it to the Costco Visa which is 3% travel and restaurant. Is the CCR one category or the other (i.e. dining, travel)?
You select one category out of:
Online shopping, gas, dining, drug stores, home improvement & furnishing, travel.
You can change once a month I believe.
You also get 3.5% (with platinum honors 75% boost) cashback on groceries/wholesalers with this card (subject to the same shared $2500/quarter cap).
Thx Morik.

$2500/qtr cap per category? Or, $2500/qtr cap total for all the different categories? For instance, if one has 5.25% on gas, and 3.5% on groceries/wholesalers, it is $2500 for both categories, or $2500 for each category?
bbrock
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

bbrock wrote: Mon Jan 30, 2023 1:56 pm
Morik wrote: Mon Jan 30, 2023 12:25 pmYou select one category out of:
Online shopping, gas, dining, drug stores, home improvement & furnishing, travel.
You can change once a month I believe.
You also get 3.5% (with platinum honors 75% boost) cashback on groceries/wholesalers with this card (subject to the same shared $2500/quarter cap).
Thx Morik.

$2500/qtr cap per category? Or, $2500/qtr cap total for all the different categories? For instance, if one has 5.25% on gas, and 3.5% on groceries/wholesalers, it is $2500 for both categories, or $2500 for each category?
The quarterly limit applies to all category spending, i.e. groceries plus customizable categories. When the limit is reached, the card effectively becomes a 1% (or 1.75% with platinum honors) card until a new quarter begins. Note that you can have more than one card though. I have two; I use one for groceries and dining, and the other is usually set to online shopping (which also works for pickup orders at local stores). I switch the categories only rarely when some major expense in one of the other categories comes up.
Lastrun
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Lastrun »

bbrock wrote: Mon Jan 30, 2023 1:56 pm $2500/qtr cap per category? Or, $2500/qtr cap total for all the different categories? For instance, if one has 5.25% on gas, and 3.5% on groceries/wholesalers, it is $2500 for both categories, or $2500 for each category?
It is total per quarter. Let me jump in here as an older, lazy and grumpy person.

IMHO you want to use the 5.25% BofA cards as a top tier Preferred Rewards member on travel, online shopping, home improvement, or dining (not sure who spends 2500 a quarter on gas).

In comparing this to the 2.625% base spend on the Ultimate Cash Rewards Card for groceries you are looking at $87.50 per year delta versus $262 for travel, dining, etc. So why waste the $2500 space on groceries.

For those that have the $95 Premium Rewards Travel Card, or the Elite, the delta is even less favorable, $175 for travel and dining.

So as one gets older they need to weigh to extra complications of running another credit card, another bill, more statements to look at, choosing a category, keeping track of what your quarterly spend is in the category (not hard, but not easy at BofA), etc. for $87-175 a year. I have determined it was not worth it and ditched the red card. 2.625% base and 3.5% dining and travel is good enough for me.
Eno Deb
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Eno Deb »

Lastrun wrote: Mon Jan 30, 2023 2:15 pmIn comparing this to the 2.625% base spend on the Ultimate Cash Rewards Card for groceries you are looking at $87.50 per year delta versus $262 for travel, dining, etc. So why waste the $2500 space on groceries.
Between my two cards I rarely exceed the combined limit, so I can take advantage of the grocery category without losing anything.
So as one gets older they need to weigh to extra complications of running another credit card, another bill, more statements to look at, choosing a category, keeping track of what your quarterly spend is in the category (not hard, but not easy at BofA), etc. for $87-175 a year. I have determined it was not worth it and ditched the red card. 2.625% base and 3.5% dining and travel is good enough for me.
I also like to keep it simple, that's why it's set up like it is. I carry the groceries/dining CCR card, and the other one is set to online shopping and saved as payment method in various online accounts like Amazon. No stress. :wink:
Lyrrad
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by Lyrrad »

BashDash wrote: Mon Jan 30, 2023 9:06 am Hi!
Quick question: I am trying to make a simple checking account transfer to a different bank? I was surprised to see a 3$ fee. I am a preferred rewards member? Is there a way to get this consistently waived? I am just trying to transfer some of my dividends in my taxable brokerage to a checking account I use for my monthly spending.
As was mentioned, ACH from Merrill should be free.

Diamond and Diamond Honors get waived wire fees (2 and unlimited per statement cycle).

I usually ACH pull from my other account or wire out. (BoA provides free wires for those that direct deposit from my employer.)
bbrock
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Re: Bank of America/Merrill Edge - Preferred Rewards

Post by bbrock »

Eno Deb wrote: Mon Jan 30, 2023 2:27 pm
Lastrun wrote: Mon Jan 30, 2023 2:15 pmIn comparing this to the 2.625% base spend on the Ultimate Cash Rewards Card for groceries you are looking at $87.50 per year delta versus $262 for travel, dining, etc. So why waste the $2500 space on groceries.
Between my two cards I rarely exceed the combined limit, so I can take advantage of the grocery category without losing anything.
So as one gets older they need to weigh to extra complications of running another credit card, another bill, more statements to look at, choosing a category, keeping track of what your quarterly spend is in the category (not hard, but not easy at BofA), etc. for $87-175 a year. I have determined it was not worth it and ditched the red card. 2.625% base and 3.5% dining and travel is good enough for me.
I also like to keep it simple, that's why it's set up like it is. I carry the groceries/dining CCR card, and the other one is set to online shopping and saved as payment method in various online accounts like Amazon. No stress. :wink:
I am already getting confused and I don't even have the cards. Not sure how much the worth is to me vs. just using the Costco Visa, and Amazon Chase Visa we already have.

So Eno, if you save one card for 5.25% online shopping, and carry the other card for groceries and dining, I thought this card you use for groceries dining would only be getting 3.5% back. Right? And, is groceries/dining one category, or separate categories? Also, if you are keeping this card to use for groceries/dining, doesn't it also have a 5.25% option that you are not taking advantage of?

Thanks for your assistance in helping me see through this muddy water.
bbrock
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