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The Freedom card offers 5% cash back for different types of purchases, which change throughout the year. The Bank of America card, on the other hand, offers 3% cash back in your choice of one category each month and 2% cash back on groceries and wholesale clubs, all year round.
They both have sign up bonuses for new cardholders, pretty long 0% introductory rates, and some other perks too.
Read on to learn if one (or both) might be right for you.
Here are the current and recent 5% cash back bonus categories:
|Quarter||2019 Categories||2020 Categories|
|January – March||
|April – June||
|July – September||
|October – December||
Take Note: There are two things to know about the 5% cash back offer (except for the Lyft category):
This card provides:
Take Note: Similar to the Freedom card above, your 3% and 2% categories are limited to the first $2,500 in purchases every quarter. After that, you’ll earn 1% cash back for those purchases.
These cards are very different: the Chase Freedom has rotating reward categories, while the Bank of America card has relatively stable, but flexible, reward categories.
They each offer rewards for gas and groceries, some of the most popular spending categories. If you’re thinking about getting one of these cards, check your spending habits and ask yourself: Would you rather get 5% back for those purchases for 3 months out of the year, or would you rather get a smaller amount back year-round?
You could even consider getting and using both of these cards. Then, you could use the Freedom card whenever you’ll get 5% back, and the BofA Cash Rewards card everywhere else.
Worried about having too many credit cards? Rather than a problem, this can actually be a good thing. Click here to watch our Q&A Video: Is There A Reason To Carry Multiple Credit Cards?
A free DoorDash membership (DashPass) for three months, and then a 50% discount for the next nine months; DashPass provides free delivery and reduced service fees on orders over $12.
Purchases are covered for 120 days against theft or damage, up to $500 per claim and $50,000 per account.
Eligible warranties of 3 years or less can be extended by up to an additional year.
Provides a number of emergency services, 24/7. Services include sending emergency messages, providing medical and legal referrals, ticket and document location, and translation services.
You will be reimbursed up to $1,500 per person and $6,000 per trip for your pre-paid, non-refundable passenger fares, if your trip is canceled or cut short by sickness, severe weather and other covered situations.
Assistance, such as a locksmith, tire change, or towing service, is provided in a roadside emergency for $59.95 per service call. (Additional fees may apply.)
Collision and theft damage is covered on most cars in the U.S. and abroad, provided that the cardholder purchases the rental with their card and declines the rental company’s collision insurance.
Get alerts about account information on your phone.
Pay your credit card bill online, transfer funds, check available credit and more.
Send a text and get important account information.
You will not be held responsible for unauthorized use of your card.
Link a Bank of America account to your card and prevent declined purchases and return checks if you take out too much money from your account.
When it comes to the extra benefits, as you can see it’s pretty one-sided. The Freedom card has the more valuable shopping and traveling protections, which can help you out when something goes wrong with items you buy or while on a trip.
The shopping benefits provide refunds if your eligible purchases are stolen or damaged and extends their manufacturer’s warranties.
The travel protections can help save you time and money while traveling if something happens on the road, as well as for minor problems like lost bags or canceled trips.
Each card also features benefits provided by Visa. You’ll need to check your Guide to Benefits, which arrives with your card, to learn what benefits are available to you.
Here’s an overview of the benefits offered by each card:
|Chase Freedom||Bank of America Cash Rewards|
|Card||Annual Fee||Intro APR for Purchases and Balance Transfers||Regular APR for Purchases and Balance Transfers||Cash Advance APR||Foreign Transaction Fee|
|Chase Freedom||$0||0% for 15 months||16.49% - 25.24% Variable||26.49% Variable||3% of each transaction in U.S. dollars|
|Bank of America Cash Rewards||$0||0% for 12 billing cycles||16.24%–26.24% Variable||19.24%–27.24% Variable||3%|
|Card||Penalty APR||Late Fee||Returned Payment Fee|
|Chase Freedom||None||Up to $39||Up to $39|
|Bank of America Cash Rewards||Up to 29.99% Variable||Up to $39||Up to $28|
The costs and fees of these cards are quite comparable. Neither has an annual fee, the 0% intro periods are almost the same length, and the APR’s are very close. They will both charge a fee for foreign transactions.
The biggest difference here is the Penalty APR: the Chase Freedom does not have one, while the Cash Rewards card does. This penalty interest rate can be applied if you make a late payment with the Cash Rewards, but you won’t have to worry about that with the Freedom card.
You shouldn’t be planning on making late payments, of course, but this is a nice feature of the Freedom card if you do make a mistake.
Insider Tip: 0% intro APRs are great, but take note that if you make a late or returned payment you could lose it before it officially ends, leaving you with the high penalty APR!
The Freedom card will give you 5% back on different types of purchases throughout the year. Check out the categories, and if you spend a lot at those kinds of stores this could be a great card for you. Keep in mind that Chase will be adding some more retailers throughout the year.
Or, consider the Bank of America card to get 3% cash back on your choice of a category each month, and 2% back on groceries and at wholesale clubs year round. Does this suit your lifestyle and spending habits better? Don’t be afraid to do a bit of math to really grind out the details.
Finally, consider using both of these cards if you see a real need for them. You can use the Freedom card whenever you’ll get the 5% cash back category, and just use the Cash Rewards card when the Freedom won’t give you that 5%.
Want to apply for or learn more about one of these cards? Just click the card’s name below.
Not the cards for you? Click here to learn more about Reward Credit Cards and see our picks for the best cards!
Do you use one of these cards? How do you like it? Leave your own review of the Chase Freedom or Bank of America Cash Rewards Card below!
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