The Bank of America Unlimited Cash Rewards is the bank's flat-rate cash back card — 1.5% on everything, no annual fee, no categories. The first year sweetener of 2% cash back from account opening makes it one of the most competitive flat-rate options in year one. With Preferred Rewards status, the earn rates boost to up to 2.625% everywhere at Platinum Honors — exceeding every flat-rate no-fee competitor. The main limitation for most people: a 3% foreign transaction fee, which the similar BofA Travel Rewards avoids.
Earning Structure
| Tier | Rate on All Purchases | Notes |
|---|---|---|
| Year 1 (from account opening) | 2% cash back | Automatic — no activation required |
| Year 2+ (base, no Preferred Rewards) | 1.5% cash back | Unlimited, no caps |
| Preferred Rewards Gold ($20K) | 1.875% cash back | +25% boost |
| Preferred Rewards Platinum ($50K) | 2.25% cash back | +50% boost |
| Preferred Rewards Platinum Honors ($100K) | 2.625% cash back | +75% boost — best no-fee flat rate available |
Year 1: 2% Everywhere — Matches Wells Fargo Active Cash
In the first year from account opening, the Unlimited Cash Rewards earns 2% on every purchase — matching the Wells Fargo Active Cash's permanent 2% rate and beating it in the context of the $200 welcome bonus. After year one, the base rate drops to 1.5%, making Active Cash the better long-term choice unless you qualify for Preferred Rewards.
$200 Welcome Bonus
Earn $200 cash back after $1,000 in purchases in the first 90 days. Combined with 2% cash back in year one on $10,000 in spending, first-year value reaches approximately $400 — strong for a no-fee flat-rate card. Cash back is redeemable as statement credits, deposits into BofA/Merrill accounts, or checks.
vs. Wells Fargo Active Cash
| Feature | BofA Unlimited Cash Rewards | Wells Fargo Active Cash |
|---|---|---|
| Year 1 Rate | 2% ✓ | 2% (same) |
| Year 2+ Rate | 1.5% | 2% ✓ |
| Welcome Bonus | $200 after $1,000 ✓ | $200 after $500 ✓ |
| Foreign Transaction Fee | 3% ⚠️ | 3% ⚠️ |
| Cell Phone Protection | None | $600/claim ✓ |
| 0% Intro APR | 15 billing cycles ✓ | 12 months |
| Preferred Rewards Boost | Up to 2.625% ✓ | None |
Pros & Cons
What We Like
- 2% in year one — automatic, no tracking needed
- $200 welcome bonus after a low $1,000 spend
- 0% APR 15 billing cycles on purchases + balance transfers
- Preferred Rewards boost reaches 2.625% — best no-fee flat rate with qualifying balances
- No annual fee, no categories, no caps
What to Watch Out For
- 1.5% base rate after year one — Wells Fargo Active Cash (2%) wins for non-BofA customers
- 3% foreign transaction fee — don't use internationally
- No cell phone protection (Active Cash offers $600/claim)
- No transfer partners, no elevated bonus categories
Bank of America® Unlimited Cash Rewards Credit Card
2% yr 1 → 1.5% yr 2+ · $200 bonus · 0% APR 15 cycles · Preferred Rewards boost up to 2.625% · $0/yr
Apply Now →Bottom Line
The Bank of America Unlimited Cash Rewards is excellent in year one (2% everywhere + $200 bonus + 15-cycle 0% APR) and for BofA Preferred Rewards members who want the highest no-fee flat rate available. For everyone else in year two and beyond, Wells Fargo Active Cash's permanent 2% rate plus cell phone protection makes it the stronger long-term choice. If you're already in the BofA ecosystem with meaningful Merrill balances, this card's Preferred Rewards boost to 2.625% makes it the best no-fee flat-rate card in the market.