Americans Prefer Cash Back to Credit Card Points, Bank of America Survey Finds

Most credit-card holders like their spending rewards in cash. 

Among the roughly 2,000 Americans recently surveyed by Bank of America, 70% said the best perk a credit card can offer is cash back. This preference was most pronounced among consumers who don’t pay an annual fee for their credit card, at 84%. About 75% of cardholders with an annual fee of under $250 ranked cash back as the top reward.

Card points and airline miles were also fairly popular rewards mechanisms, the survey found. But getting first dibs on concert tickets, access to exclusive events and other “lifestyle rewards” along with “airport lounge access, and discounts at specific retailers were not highly rated by respondents despite their prevalence in recent marketing,” Bank of America said. 

Consumers with premium cards—defined as those with an annual fee of at least $250—had different preferences. Just 33% of this group valued cash back most, while 52% had more appreciation for card points, the survey said.

The results challenge the idea that premium cardholders tend to be older, given that 19% of those surveyed were under 30, the analysts said. This group skewed higher-income and male, with 65% of the premium cardholders identifying as male, and 35% as female, the survey said.

Roughly 45% of credit cardholders reported having an annual fee of any size, which exceeded analysts’ expectations. The Consumer Financial Protection Bureau estimated in recent years that 15% to 27% of credit cards had an annual fee.