Are you a frequent diner looking to maximize your rewards? In this guide, we'll compare two top contenders: the Bank of America Customized Cash Rewards and the American Express Gold Card. Both offer significant dining rewards, but which one reigns supreme?
Bank of America Customized Cash Rewards
The Basics
The BoA card is a no-frills, no-annual-fee option that offers 3% cashback on your chosen category. While this seems great at first glance, it comes with some caveats.
Pros and Cons
Pros:
- No Annual Fee: A big plus for budget-conscious spenders.
- Customizable Spending Category: You get to choose the category that works best for you (3% cashback).
- Quick Sign-Up Bonus: Earn $200 after spending $1,000 in 90 days on your chosen category.
Cons:
- Limited Rewards Scope: The rewards are restricted to just one area of spending.
- Moderate APR: This card isn't the best if you carry a balance.
When It's Best
If you regularly spend around $1,000 per quarter in a specific area (like dining out), this card can be a great way to earn significant cashback. For example, if you choose dining as your category and spend $4,000 annually on meals, you could earn an extra $120 in rewards.
American Express Gold Card
The Basics
The AmEx Gold Card is more robust but comes with a higher price tag-$325 annual fee. It offers 4% cashback globally on dining and US supermarkets.
Pros and Cons
Pros:
- Sign-Up Bonus: Earn 60,000 points after spending $6,000 in 6 months.
- High Dining Rewards: 4% cashback on dining globally and US supermarkets.
- Flexible Spending: Multiple high-reward categories make it versatile.
Cons:
- Higher Annual Fee: A significant cost that needs to be offset by substantial spend.
- Trade-offs with Flexible APR Terms: You won't get the best interest rate terms, even though you'll earn more rewards.
When It's Best
This card is perfect for someone who spends at least $1,625 annually in restaurants and US supermarkets. For instance, if you dine out six times a week and spend an average of $30 each time, you're already hitting the mark to start earning 4% cashback.
Our Pick
While both cards have their strengths, we think the American Express Gold Card is the better choice for frequent diners. With its higher earn rates on dining and a generous sign-up bonus, it offers more value in the long run. The $325 annual fee can be justified if you meet or exceed the required spend.
Real-World Scenario
Let's consider a scenario where you dine out 10 times a month at an average cost of $40 per meal. Over a year, that's about $4,800 spent on dining alone. With the Gold Card’s 4% rewards, you'd earn: \[ 0.04 \times \$4,800 = \$192 \]
Add in the sign-up bonus of 60,000 points (worth around $750 based on typical point value), and you're already ahead after just six months.
Conclusion
If dining is your primary spending category, the American Express Gold Card offers the best overall deal. It provides high rewards with a sign-up bonus, making it worth the $325 annual fee for heavy diners. The Bank of America Customized Cash Rewards card might be suitable if you have a specific budget and want to focus on one area, but its earning potential is more limited.
Remember, the key is finding the right balance between spend and reward. Happy dining!