In place of the old card, Bank of America will be issuing a new card that offers 1% cash back on retail purchases, 2% on groceries, and 3% on gas — with a $1500 quarterly cap on groceries and gas. You will also (apparently) get a 10% bonus on your cash back earnings if you have them deposited into a Bank of America account.
Alternatively, at least one reader has been offered the option of switching to a Bank of America “Privileges” card with that offers 1% cash back on all purchases, and 3% on select categories that rotate quarterly. I’m not sure if you’ll have to opt in like with other card issuers, but this sounds similar — except both Citi and Chase offer 5% cash back on their bonus categories. Note, however, that Chase is currently offering a $200 signup bonus.
While that same reader was told that the terms and conditions of their current (Schwab/FIA) account would apply to the new account, a reader named Janice reported that:
I received another letter today from B of A. They state that travel accident insurance will be reduced from $1, 000, 000 to $250, 000; I.D. Theft Recovery will no longer be a benefit; and Price Protection will no longer be a benefit.
It remains unclear if features like the lack of foreign transaction fees will remain in place.