Posted by Chuck on May 29, 2019
Brokerage Bonuses

Published on May 29th, 2019 | by Chuck

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Bank of America Now Offers 10 Free Trades to Preferred Rewards Gold Members ($20,000 Tier)

Bank of America Gold relationship customers now get up to 10 free investing trades per month. (Link)

Preferred Rewards is Bank of America’s proprietary relationship benefits package for those with deposits and investments with the bank or with Merrill (combined). They’ve long offered up to 30 free trades per month for Platinum customers and up to 100 free traders per month for Platinum Honors customers. Now, they added 10 free trades for Gold customers.

  • $20,000+ puts you in the Gold tier and gets you up to 10 free trades per month
  • $50,000+ puts you  in the Platinum tier and gets you up to 30 free trades per month
  • $100,000+ puts you in the Platinum Honors tier and gets you up to 100 free trades per month

For someone who does a bit of trading, this can be an easy way to get them free. Technically, you can save around $1,000 per year by keeping $20,000 in cash or investments BofA/Merrill. (I figure about $8 per trade is typical, 8 x 120 = 960.) Another option is to use an app like Robinhood to save trading fees.

We’ll update our original post on Bank of America Preferred Rewards to reflect this new Gold benefit. Be sure to take advantage of the Merrill brokerage bonus; if you decide to open an account and deposit $20,000 with Merrill you can get $100.

Hat tip to readers Joseph Trusts and Max



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Ryan
Ryan

Now if they would only come out with a half decent looking physical credit card rather than the flimsy premium rewards card…

joE
joE

It’s 2019, you still use physical cards? 😉

Mr G
Mr G

If you still have the originally issued card, call and request a duplicate (just say your current card is damaged) and they will send you one of the newer cards which is a lot better.

Lightspeed
Lightspeed

I’m a gold client; I sold some ETFs today and can confirm this has gone live despite that the main Preferred Rewards site has not yet been updated.

Stan
Stan

since Robinhood is ALWAYS “nothing” in fees, this BofA offer is literally worth nothing.

Mar
Mar

I would argue that there is value in keeping investments with merrill over robinhood. Not to mention you can’t open an IRA with robinhood, but to each his own

Stan
Stan

this is like BofA saying i can use their water fountain for free in their branch. or offering to let me use their bathroom for free 10 times if i have $20,000 there.

Celia
Celia

robinhood still doesn’t allow for dividend reinvestment, do they? That alone kept me from that service. If they allow that, I’d consider it.

nick
nick

that is correct. still no DRIP

Betelgeuse
Betelgeuse

You only need to have 3 month average balance to be over 20k to get gold status (same for other levels). Then you keep the status for one year even if the balance drops.

Denis
Denis

You get your status until membership year end (it’s based on your enrollment date) + 2 months grace period. So technically you may get up to 14 months of status for the first year.

PS BofA does average balance update on about 5th or 6th day of month.

joE
joE

Denis How much time do you have before you lose status after the first year?

Denis
Denis

Let’s say your average balances reach threshold and you enroll in the program in September. Enrollment is a separate (but simple) online process, you don’t get status without it.

You are supposed to requalify next September to keep the status, but if you don’t you get a snail mail saying you have 2 extra months to replenish your balances while enjoying your previous status (i.e. until November 30). If you still don’t qualify your status in online bank changes on around December 6th. I’m not sure what actually happens in the first few days of December (does BofA waive fees for example or not)

Ray
Ray

Was waiting for this to switch my Roth IRA over. Awesome! Now I just need to get targeted for $300 checking.

Mike
Mike

Does Merrill offer any money markets at all yet? Last time I checked they still don’t offer vanguard’s money markets and their sweep fund pays out at savings rate (meaning nothing). The problem for those who just do occasional trades is that there is really nowhere to park your money. Short term bonds are reasonably safe, but they aren’t as safe as a money market.

Andy
Andy

Out of curiosity, why was my comment removed? I was pointing out that the majority of large brokerages charge $5-$7 for trades, so valuing this benefit at ~$1,000 is overstating a bit.

William Charles

We don’t remove comments, it was either in moderation or it went to spam for some reason

Andy
Andy

Whoops, thanks guys 🙂 Maybe the spam filter thought I was trying to advertise brokerages. Though I’ve read that post before, it definitely slipped my mind. I’ll probably remember it now that it’s happened to me. Thanks again!

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