The application for this card came in the mail this weekend.  Where I used to just throw them away, now I read them and see where they could fit into my strategy.

The Bank of America MLB Cash Rewards Mastercard has no annual fee, and offers a $150 cash back bonus after spending $500 in 90 days.

This cash back can be applied to your account balance Or transfered over to a Bank of America checking or savings account. Here’s the kicker, if you choose to move your rewards to a BoA account, you receive a 10% bonus.

You accrue cash back on the following categories:

3% on gas

2% on groceries

1% on everything else

Up front this appears to be a quick way to get $150 off $500 in purchases.  But let’s apply a use case.

Let’s say you’re a  young couple with a new born.  Just buy using this card for your gas and groceries, you could create a nice savings plan for your baby.  For example, you spend $100 a week on groceries and $50 on gas.

Groceries – $100 x 52 x 2% = $104

Gas – $50 x 52 x 3% = $78

That’s $182 in rewards a year on your gas and groceries, which becomes $200 when it’s put into a BoA Savings account.  And after 18 years that baby has over $3600!