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Capital One, BoA launch new cash back rewards cards

by Peter Andrew
Capital One, BoA launch new cash back rewards cards

Editor’s Note: Thank you for your interest, this offer expired and is no longer available.

Another week, another new credit card launch. That, at least, is how it feels. As credit card companies begin to feel strong again after the body blow that was the credit crunch, they’re starting to fight one another for market share. And that can benefit consumers, because some of the new products are noticeably better than older ones. Here are two of the latest cash back credit cards.

One of the best cash back rewards cards?

First up, the all-new Capital One Cash credit card, which was launched last Tuesday. This one has some attractive features:

  1. 1 percent cash back on all purchases
  2. A 50 percent bonus on all the cash rewards earned over the previous 12 months, paid each year on the anniversary of your card membership
  3. A one-time cash bonus of $100, providing you spend at least $500 on the card during the first three months you have it
  4. A simple rewards program with no expiration dates, no spending maximums or minimums, and no enrollment requirements
  5. No foreign transaction fees

In a press release, Mike Wassmer, executive vice president of US Card at Capital One, reckoned:

We’re confident that once customers experience the rich rewards, the simplicity of earning 50 percent more cash back every year along with flexible redemption options and great customer service, Capital One Cash will become their cash back card of choice.

Wassmer might be right that this is one of the best cash back rewards cards, but whether it’s the best for you personally is likely to depend on your lifestyle. For example, if you travel abroad a lot, that lack of foreign transaction fees could in itself sell this product to you. If you don’t leave the country much, read on because it’s possible that the other newly launched card could suit you just as well or maybe even better.

Another of the best cash back rewards cards?

Yesterday, Bank of America unveiled its latest product, the BankAmericard Cash Rewards™ card. With this one, you forgo that 50 percent anniversary bonus you get with Capital One’s new product. But instead you get something that may or may not match your needs better:

  • 1 percent cash back on everything you buy (on the card, obviously)
  • 2 percent cash back on items you buy in grocery stores
  • 3 percent cash back on purchases you make at gas stations

Those 2-percent and 3-percent bands apply only to the first $1,500 you spend in those categories each quarter. After that, grocery store and gas station purchases award only 1 percent. Susan Faulkner, a BofA consumer banking products executive, remarked in a statement: “We have developed a solution that sets us apart from the competition by giving customers more value in the spending categories that matter most to them.”

Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.

This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.

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