You have Bank of America travel rewards points sitting in your account. Now what? The straight answer is this: you can redeem them for flights, hotels, rental cars, statement credits, or cash back. But not all redemptions are equal. Some give you 1 cent per point. Others give you 1.25 cents or more — if you know the right steps.
This article walks through exactly how to redeem those points, what each option pays, and the traps that cost you value. This is not financial advice. Consult a licensed advisor for your specific situation. Laws governing credit card rewards vary by state; this information is general and based on typical Bank of America policies as of early 2026.
How Bank of America Travel Rewards Work — The Core Mechanics
Bank of America issues two main travel rewards cards: the Bank of America Travel Rewards Credit Card and the Bank of America Premium Rewards Credit Card. Both earn points at a base rate of 1.5 points per dollar spent. The Premium Rewards card adds a $100 airline incidental credit and a $100 Global Entry/TSA PreCheck credit each year.
Points do not expire as long as your account remains open and in good standing. But here is the critical detail: you cannot transfer points to airline or hotel loyalty programs. Unlike Chase Ultimate Rewards or American Express Membership Rewards, Bank of America forces you to redeem through their portal or as a statement credit. That limits your flexibility.
Preferred Rewards Bonus — The Real Value Driver
If you hold a Bank of America checking or Merrill Lynch investment account, you qualify for the Preferred Rewards program. This boosts your point earnings by 25% to 75%, depending on your combined balance. With $100,000 or more in combined balances, you earn 2.625 points per dollar on every purchase with the Premium Rewards card. That is competitive with any flat-rate cash-back card on the market.
But the bonus only applies to earning points, not redeeming them. Redemption value stays fixed at 1 cent per point for statement credits and travel purchases booked through the portal.
Redeeming Through the Travel Portal — Highest Value, But Limited
Bank of America operates an online travel portal where you can book flights, hotels, rental cars, and cruises using points. This is the only way to get 1 cent per point in value. Book a $500 flight with 50,000 points, and you pay nothing out of pocket. Simple.
| Redemption Method | Value Per Point | Best For |
|---|---|---|
| Travel Portal Booking | 1 cent | Flights, hotels, rental cars |
| Statement Credit for Travel | 0.6 – 0.8 cents | Miscellaneous travel charges |
| Cash Back | 0.5 – 0.6 cents | Emergency cash needs |
| Gift Cards | 0.8 – 1 cent | Specific retailer purchases |
The portal is your best option for flights. You see real-time prices from major airlines — Delta, United, American, Southwest, and most international carriers. Hotels include chains like Marriott, Hilton, and Hyatt, plus independent properties. But the portal does not show every fare class or hotel rate. You lose access to airline elite status benefits and upgrade opportunities when booking through third-party portals.
How to Book Through the Portal
Log into your Bank of America account. Navigate to the “Travel & Dining” section. Click “Book Travel.” Search for your flight or hotel. At checkout, select “Use Points” and enter the number of points you want to apply. The system automatically calculates the remaining cash balance. Complete the booking. That is it.
One catch: you must have enough points to cover the entire purchase if you want to pay entirely with points. Partial point redemptions are allowed, but the points used apply only to the portion they cover. You pay cash for the rest.
Statement Credits for Travel — The Trap Most People Fall Into
Many cardholders assume they can book any travel expense — a flight, a hotel, a taxi — and then redeem points to erase that charge. This is partially true, but the value is lower.
When you redeem points as a statement credit for a travel purchase, Bank of America values each point at roughly 0.6 to 0.8 cents. A $100 hotel stay costs you around 12,500 to 16,667 points. Compare that to the portal, where the same stay costs 10,000 points. You lose 20% to 40% of your points’ value.
When should you use this option? Only when the travel purchase does not appear in the portal — for example, a non-refundable flight booked directly with an airline that does not show up in the Bank of America system, or a small boutique hotel that is not listed. Even then, consider whether paying cash and saving points for a future portal booking makes more sense.
How to Redeem for a Statement Credit
After the travel charge posts to your account, go to the rewards section. Select “Redeem Points.” Choose “Statement Credit for Travel.” Select the eligible charge from the list. Confirm the redemption. The credit appears within 1–2 billing cycles. Do not expect it instantly.
Important: only charges coded as “travel” by Bank of America qualify. Airline tickets, hotel stays, car rentals, and cruise fares typically qualify. Uber rides, parking garages, and tolls may not. Check your specific transaction.
Cash Back, Gift Cards, and Other Redemption Options — Lower Value, Higher Flexibility
Bank of America allows you to redeem points for cash back as a deposit into a checking or savings account, or as a paper check. The rate is 0.5 to 0.6 cents per point. A $100 cash redemption costs you 16,667 to 20,000 points. That is half the value of a portal booking.
Gift cards offer slightly better value — typically 0.8 to 1 cent per point — but only for specific retailers. Amazon, Starbucks, and Target gift cards are common. If you regularly shop at one of these stores, gift cards can be a decent option. But you are still leaving value on the table compared to travel portal redemptions.
Never redeem for cash back unless you have an emergency. The value is too low. Even a mediocre travel redemption gives you double the buying power.
When to Choose Cash Back
If you have a small balance of points — say 2,000 points — that will not cover a meaningful travel purchase, cashing out for $10 to $12 is reasonable. Similarly, if you are closing the account, redeem all points before closure because they will be forfeited. Otherwise, avoid cash back.
Common Mistakes and How to Avoid Them
Mistake one: redeeming points for a statement credit on a small travel charge without checking the portal first. Always check the portal price before booking directly with a hotel or airline. If the portal has the same rate, book through the portal and pay with points. You get full 1 cent per point value.
Mistake two: assuming Preferred Rewards bonus applies to redemptions. It does not. The bonus only increases your earning rate. Redemption rates are fixed regardless of your status.
Mistake three: letting points sit unused for years. While they do not expire, inflation erodes their purchasing power. A $500 flight today might cost $600 next year, requiring more points. Redeem points within 12 to 18 months of earning them for maximum real-world value.
Mistake four: booking travel through the portal without comparing direct prices. Sometimes the portal charges a higher base rate than booking directly with the airline. In that case, booking directly and using points for a statement credit might actually save you money overall, even with the lower redemption rate. Run the numbers both ways.
Mistake five: ignoring the 3% foreign transaction fee on the basic Travel Rewards card. If you travel internationally, the Premium Rewards card has no foreign transaction fees. Using the basic card abroad costs you 3% on every purchase, which effectively reduces your points value. Upgrade if you travel outside the U.S. more than once a year.
The single most important takeaway: always redeem through the Bank of America travel portal for flights and hotels, and never redeem for cash back unless you have no other choice.