Update 8/22/23: See details on expanded categories here.
Update 1/11/2019: Looks like the ability to choose your own category is now live. This is being slowly rolled out, so you might not see the option yet. Hat tip to reader SCJ
Bank of America has announced that on January 14th cash rewards cardholders will be able to choose one of six categories to earn 3% cash back in. The categories are as follows: gas, online shopping, dining, travel, drug stores, or home improvement and furnishings. Cardholders will continue to earn 2% back at grocery stores and wholesale clubs and 1% back on all other purchase. Previously cardholders automatically earned 3% cash back on gas stations with no option to choose. On January 14th the initial category will be set to gas but cardholders will have the opportunity to change that to one of the list categories above.
This card becomes particularly interesting when you remember that the Bank of America Preferred Rewards program applies, meaning you can get a further 25-75% points on points earning. This means that 3x category becomes 5.25x at the highest level. The downside is that the 3x & 2x category are limited to $2,500 per quarter, after spending $2,500 those categories earn 1x points instead. It’s currently possible to get a sign up bonus of $200 on the personal version of this card. Bank of America also announced a similar change will becoming to the Business Advantage Cash Rewards card ‘sometime in 2019’ with the 3x options being: business consulting services, computer services, gas stations, office supply stores, travel and TV, telecom and wireless.