The concept of a credit card that rewards you for paying your balance on time is not entirely new. For instance, the old Discover Motiva card rebated 5% of your current month’s interest when you paid on time and the Citi Forward for College Students card will reduce your purchase APR when you pay on time 3 billing periods in a row. But those incentives pale in comparison to the rewards that Bank of America is offering on its new BankAmericard Better Balance Rewards credit card. The new card will pay you a cash rebate of up to $120 a year, as long as you pay your monthly bill on time and pay more than the monthly minimum each time.

Each quarter that you make each payment on time and pay than the monthly minimum, you’ll earn $25 in cash rewards. In addition, you’ll get another $5 bonus each quarter if you have at least one other qualifying account, such as a checking account, with Bank of America or Merrill Lynch. That’s a total of $120 that you can earn each year.

One important caveat is that you cannot have a zero balance or a positive credit balance in a month in order to be eligible for the bonus. But according to the program terms and conditions, as long as you have a payment due in each monthly cycle (which can be accomplished with a small monthly charge), you can earn the reward.

Customers can elect to have their cash rewards automatically credited to their card balance or deposited into a Bank of America checking or savings account or Merrill Lynch Cash Management Account. The card does not have an annual fee.

For more info or to apply, see this link.