The Chase Freedom vs. The Bank of America Cash Rewards™ Credit Card

Let’s take a look at two popular rewards credit cards of different types: the Chase Freedom and the Bank of America Cash Rewards™ Credit Card.

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.

The Rewards

Chase Freedom

You’ll get:

• 5% cash back on Lyft purchases (through March 2022)
• 5% cash back on purchases in the current categories
• 1% cash back on all other purchases
• $150 introductory bonus for spending $500 in the first 3 months

Here are the current and recent 5% cash back bonus categories:

Quarter	2019 Categories	2020 Categories
January – March	Gas Stations Tolls Drugstores	Gas Stations Streaming Services Internet, Cable, Phone Services
April – June	Grocery Stores Home Improvement Stores	Grocery Stores Fitness Club & Gym Memberships
July – September	Gas Stations Streaming Services	TBA
October – December	Department Stores PayPal Chase Pay	TBA

Take Note: There are two things to know about the 5% cash back offer (except for the Lyft category):

1. You’ll need to activate your rewards every three months before you will earn the 5% back.
2. The 5% cash back is limited to $1,500 in purchases every 3 months. After that, 1% cash back is provided.

Bank of America Cash Rewards

This card provides:

• 3% cash back in one category of your choice:
  • Gas
  • Online shopping
  • Dining
  • Travel
  • Drugstores
  • Home improvement/furnishings stores
• 2% cash back at:
  • Grocery stores
  • Wholesale clubs
• 1% cash back on all other purchases
• $200 cash rewards introductory bonus for spending $1,000 in the first 90 days (online applicants only)

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.

The Verdict

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.

The Benefits

Chase Freedom

Dining

• DoorDash Membership

  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.

Shopping

• Purchase Protection

  Purchases are covered for 120 days against theft or damage, up to $500 per claim and $50,000 per account.

• Extended Warranty Protection

  Eligible warranties of 3 years or less can be extended by up to an additional year.

Travel

• Travel and Emergency Assistance Services

  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.

• Trip Cancellation/Trip Interruption Insurance

  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.

• Roadside Dispatch/Roadside Assistance

  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.)

• Auto Rental Collision Damage Waiver

  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.

Bank of America Cash Rewards

Account Management

• Account Alerts

  Get alerts about account information on your phone.

• Mobile Banking

  Pay your credit card bill online, transfer funds, check available credit and more.

• Text Banking

  Send a text and get important account information.

Security

• Fraud Protection

  You will not be held responsible for unauthorized use of your card.

• Overdraft Protection

  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.

The Verdict

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
Account		Account alerts Mobile banking Text banking
Security	Zero-liability Protection	Fraud Protection Overdraft Protection
Shopping	Purchase Protection Extended Warranty Protection
Travel	Travel and Emergency Assistance Services Auto Rental Collision Damage Waiver Trip Cancellation/Interruption Insurance Roadside Dispatch/Roadside Assistance

The Costs & Fees

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 Verdict

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.

The Bottom Line

The Chase Freedom and Bank of America Cash Rewards Card are both valuable rewards credit cards, providing their cash back for some of the same types of purchases.

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.

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!