Bank of America Corporation (BAC - Free Report) launched a new credit card – BankAmericard Better Balance Rewards card. The card offers customers a reward of up to $100 yearly for efficient management of their credit card payments per month. The card, which does not charge a monthly fee, will be made available to the customers this week through the bank branches as well as online.
The primary benefits of the card include a quarterly cash reward of $25 if payments are made on a timely basis and when a sum more the outstanding amount is paid. Moreover, customers having a checking or savings account with the bank can gain an additional $5 bonus reward payment per quarter.
Additionally, customers have the option to have their cash rewards credited to their card balance or deposited into their checking or savings account in BofA or a Merrill Lynch Cash Management Account.
Management at BofA believes that the new credit card will be useful to the consumers who, by paying more than the minimum amount due each month, can help pay off the debt faster. With the reward points and added bonus, BofA seeks to reward its existing customers and attract newer ones.
With the issuance of new credit cards, BofA is trying to capture a huge share of the ever-growing credit card market. By offering bonus rewards, it is eyeing a significant increase in its deposits, which was affected by its plans to charge customers for debit card usage.
BofA currently retains its Zacks Rank #3. Other major banks that are performing better than the company include BankUnited, Inc. (BKU - Free Report) , State Street Corporation (STT - Free Report) and Fifth Third Bancorp (FITB - Free Report) . Among these, BankUnited carries a Zacks Rank #1 (Strong Buy) and the other two carry a Zacks Rank #2 (Buy).