Bank of America® Cash Rewards vs. Citi® Double Cash

May 27, 2016, Written By Jason Steele
Bank of America® Cash Rewards vs. Citi® Double Cash

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Many American credit card users want to earn as much cash back as possible from their cards, and there are many ways to do so. Some cards offer bonuses for certain types of purchases, while others feature a higher level of cash back for on everything. Bank of America and Citi are two of the nation’s largest credit card issuers and they both offer very competitive cash back credit cards.

Let’s take a look at the features and benefits of both the Bank of America® Cash Rewards Credit Card  and the Citi Double Cash card, and then see which one will be best for you.

Bank of America® Cash Rewards Credit Card

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The Bank of America® Cash Rewards Credit Card is an outstanding cash back card. It offers 1% cash back on all purchases, but 2% on transactions made at grocery stores and at wholesale clubs, and 3% on a category of your choice: gas, online shopping, dining, travel, home improvement/furnishings or drug stores. These increased payouts are applicable on up to $2,500 in combined choice category/grocery store/wholesale club purchases each quarter. Cardholders can update their choice category for future purchases once each calendar month using the Mobile banking app or Online banking, or do nothing and the category stays the same. If you’re a Bank of America Preferred Rewards client, you can receive a 25% – 75% rewards bonus on every purchase. New customers can earn a $150 sign-up bonus after spending $500 in the first 90 days of being a cardholder. In addition, new applicants will get 12 billing cycles of 0% APR on both new purchases and balance transfers. The balance transfers must be completed within 60 days of account opening, and a 3% balance transfer fee applies. The card has an APR ranging from 16.24% - 26.24% Variable APR on purchases, depending on your credit worthiness. The card has no annual fee but there is a 3% foreign transaction fee on transactions made outside of the United States.

Citi® Double Cash

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The Citi® Double Cash card offers cash back twice on all purchases. Cardholders receive 1% cash back on everything at the time of purchase, and then another 1% cash back when the item is paid for, for a total of 2% cash back. There are no caps and no category restrictions for this cash back offer.

In addition, new applicants receive 18 months 0% APR financing on balance transfers. Qualifying balance transfers must be completed within four months of account opening, a 3% balance transfer fee applies, and balance transfers do not qualify for cash back. After the promotional rate expires, the standard rate of 15.74% - 25.74%* (Variable) will apply, based on your creditworthiness at the time of the application.

This card also includes Citi’s Price Rewind service, which will automatically search for a lower price on your eligible, registered purchases, and refund of the difference if it finds a lower price within 60 days of purchase. This card also features an extended warranty policy that adds a year to the manufacturer’s warranty for many purchases. Travel benefits include worldwide rental car insurance, as well as a travel and emergency assistance hotline. Citi also offers automatic account alerts, a customizable payment due date, and compatibility with the Apple Pay mobile payment system. There is no annual fee for this card, but there is a 3% foreign transaction fee imposed on all payments processed outside of the United States.

Which card is right for you?

By offering a total of up to 2% cash back on all purchases, the Citi® Double Cash card has set a new benchmark among cash back reward credit cards that is tough to meet. It also offers a very strong promotional financing offer for 18 months, and a competitive list of cardholder benefits for shopping and travel.

Nevertheless, the Bank of America® Cash Rewards Credit Card does have a few advantages. First, it offers a $150 sign-up bonus while the Citi Double Cash card has no introductory offer. In addition, Bank of America has a very large retail banking presence.

Bank of America customers who make a lot of purchases in one of the enhanced categories should strongly consider the Bank of America® Cash Rewards Credit Card , while many others may be better off with the Citi Double Cash card. By looking closely at your banking and spending habits, you will find the right card for you.

The information contained within this article was accurate as of May 27, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About Jason Steele

Jason Steele is a freelance journalist and an expert on the credit card industry. He contributes to several of the top personal finance sites, and his work is syndicated to mainstream outlets such as MSN Money, Yahoo! Finance, and Business Insider.
View all posts by Jason Steele