If I told you there was a credit card offering a whopping 6 % money up on any one of six common saving groups, including kitchen and travel, do you think it’s one of the best cash back cards to consider applying for this summer? I would like to be a credit card expert who has covered this subject for years.

Thanks to a new offer, the Bank of America’s Customized Cash Rewards credit card is the most recent addition to the list of top rewards credit cards. In their first year, new cardholders can earn 6 % back on purchases in one spending category of their choice from six available options.

What’s the deal, exactly? This card has some drawbacks, which make it less lucrative than it appears, and it might not be the ideal choice for everyone. Here is what you need to know.

Everything you need to know about the new promotion

For the first year, Bank of America Customized Cash Rewards now offers double cash back in one of your favorite categories. That means 6 % cash back in the choice category instead of 3 % cash back on the first$ 2, 500 ( in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1 % thereafter ).

This offer for new cardholders has no end date. Choose a choice from the following options to be your choice:

• Travel
• Dining
• Drug stores
• furnishings and home improvement
• Charging stations for both gasoline and electric vehicles
• Online shopping ( including cable, internet, phone plans, streaming )

You can switch your category once per month using mobile or online banking. Your month-by-month selection will continue if you don’t switch it. You’ll also earn 2 % back at grocery stores and wholesale clubs, and 1 % back on all other purchases.

There is a$ 2,500 combined quarterly spending cap for the choice category and the 2 % categories, after which you’ll receive 1 % back on those purchases. New cardholders can also receive a$ 200 welcome bonus after making$ 1, 000 in purchases within the first 90 days of receiving the credit card, in addition to the improved first-year cash back rates.

This new offer looks really strong …

You need to understand the cash-back landscape to understand why the new Customized Cash Rewards offer is so excellent.

Flat-rate cards typically offer 2 % on all purchases, similar to the Wells Fargo Active Cash Card. Tiered rewards cards, like the Blue Cash Everyday ® Card from American Express, typically offers 3-5 % back on a few fixed categories and 1 % back on everything else. Up to a quarterly maximum, which the issuer may change throughout the year at the issuer’s discretion, are typically offered on rotating rewards cards like the Chase Freedom Flex, along with 1 % back on everything else.

With this new promotion, Customized Cash Rewards will give you 6 % of your choice in the first year of business ( plus 2 % of your purchases in grocery stores and wholesale clubs ). More importantly, you can choose your 6 % category and change it once per month.

That translates to more flexibility and rewards than most competitors. Rewards are limited beyond a certain point by the quarterly spending cap, but that’s typically the case with no-annual-fee cash back cards with high category bonuses.

Though maximizing rewards requires some careful planning ( more on that later ), this new offer makes Customized Cash Rewards one of the best cards for anyone whose top spending categories change throughout the year.

There are some caveats, though.

Be sure to take into account these caveats before jumping on this new credit card offer.

Bonus rewards are only for the first year with a spending cap

The$ 2,500 quarterly spending cap on the choice and 2 % categories, which limits rewards for big spenders, is the biggest flaw of Customized Cash Rewards. ( To be clear, big spenders can still use this card for their first$ 2,500 of purchases. ) They’ll just want to use a different card afterwards. )

The second problem is that the reward rates go back to the pre-recorded level after the first year:

• 3 % cash back for the choice category
• 2 % back at grocery stores or wholesale clubs
• 1 % cash back on all other kinds of purchases

These are still competitive rewards rates for a no-annual-fee card, but they won’t be top of the list for some choice categories.

You have to time spending carefully to maximize rewards

The 3 % and 2 % categories of Customized Cash Rewards share a significant portion of the quarterly spending cap, which is determined based on the order of your transactions, so improper timing may result in lower rewards. The difference is even greater now that the first-year rewards rate for the choice category was 3 %.

For instance, say this quarter you plan to spend$ 1, 000 on groceries each month, plus another$ 1, 000 on online shopping (your choice category ) at the end of the quarter. Your rewards would look like if you used your card as usual, charging the$ 3, 000 in groceries over the course of three months, and finally the$ 1, 000 in online purchases:

In contrast, if you had made the first online purchase before those grocery purchases ate up your quarterly spending cap, you would have earned$ 105. You would have profited from the 6 % rewards rate on that purchase. A difference of a few dozen dollars isn’t the end of the world, but with some extra planning, you can maximize rewards with Customized Cash.

Does the Preferred Rewards program’s first year double cash back stack work with the program?

For eligible customers who maintain a certain balance in a Bank of America banking or Merrill investment account, the Bank of America Preferred Rewards&nbsp program offers a 75 % bonus on its credit card rewards. The Preferred Rewards bonus will apply to the base 3 % choice category cash back rate, but not the additional 3 % from the first year bonus, according to a Bank of America representative.

So, according to the quarterly spending cap, someone in the Preferred Rewards program’s highest tier could potentially earn a total of 8.25 % cash back on purchases made in their choice category during the first year, including a base reward of 5.2 % and an additional 3 % from the first year bonus.

Remember not to spend too much money just to get paid.

Several choice category options — like&nbsp, travel, &nbsp, online shopping, and home improvement and furnishings — lend themselves well to large purchases. This card is a great way to earn extra cash back on those expenses if you already have budgeted for those kinds of purchases. Don’t let the rewards compel you to make purchases that you otherwise wouldn’t be able to afford or that are out of your means.

While this card does have a 0 % introductory APR offer for 15 billing cycles on purchases and balance transfers ( 18.24 % to 28.24 % variable APR thereafter ), it’s still not a smart idea to take on credit card debt for discretionary spending. Although 6 % cash back may seem like a lot of rewards, it isn’t nearly as much of the interest you’ll pay when you carry a balance at the regular APR each month.

Should you purchase a Customized Cash Card in conjunction with the new promotion?

As a credit card expert, I wouldn’t hesitate to recommend this card to readers as well as my friends whose needs and spending habits fit its profile. If all of the following apply to you, you should probably pick up this card:

• You put a lot of money into one or more of the categories.
• You want a new cash back card and don’t already have the Customized Cash.
• If your choice and 2 % category spending is lower than$ 2,500 per month, or you switch to a different card once you have reached that limit, you must use it.

Having said that, it’s not for everyone, even myself. I personally&nbsp, prefer the travel rewards from my trusty Chase Sapphire Preferred Card over cash back rewards, since I value the flexibility of transferable points more than a higher base rewards rate. Consider purchasing a dedicated travel card in its place if you’re in the same camp.

You’ll be better off with a card that rewards you where you spend the most if you don’t spend a lot on any of the choice categories. Although this card does offer 2 % back at grocery stores and wholesale clubs, there are more rewarding cards for groceries. A 2 % unlimited cash back card might be the best choice if you only want to use one card for everything and spend a lot.