Bask Bank is an innovative online banking division of Texas Capital Bank that offers a unique savings account experience, allowing you to earn American Airlines AAdvantage miles in lieu of traditional interest. This article will provide you with a Bask Bank review, its benefits, and drawbacks.
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Bask Bank Review
Bask Bank is an online savings account provider that offers two different options for saving money: the Bask Mileage Savings Account and the Bask Interest Savings Account.
The primary reason Bask Bank stands out is its ability to let you earn American Airlines AAdvantage miles instead of cash interest on deposited funds.
Bask Bank is owned by Texas Capital Bank and is FDIC-insured for up to $250,000. There are no minimum fees or deposits required to open an account.
Bask Mileage Savings Account
With the Bask Mileage Savings Account, you earn 2.5 American Airlines AAdvantage miles per year per dollar saved. You can currently earn 2,000 bonus miles when you keep a $10,000 account balance for 90 consecutive days out of the first 120 days following the initial account opening.
These sign-up bonuses for new customers are regularly offered by Bask Bank. Miles earned through the Bask Mileage Savings Account accrue daily and are deposited into your AAdvantage account monthly.
The miles you earn are considered income for tax purposes, and Bask Bank will issue a 1099. The income is reported to the IRS, and you’ll receive a 1099 for these mileage earnings with a taxable value of 0.42 cents per mile.
Bask Interest Savings Account
If you prefer cash interest, you can opt for the Bask Interest Savings Account, which is currently offering a 4.75% annual percentage yield (APY).
Keep in mind that the rewards for savings accounts change over time based on interest rates. Rewards earned through your Bask Bank savings accounts are taxed, and you’ll be issued a 1099 for the rewards you earned.
If you open a Bask Bank Interest Savings Account and earn cash interest, you pay taxes on the rewards you earn at the standard rate in line with your tax bracket.
Benefits and Drawbacks
The biggest benefit of the Bask Bank Mileage Savings Account is the ability to earn American Airlines AAdvantage miles. Additionally, there are no fees or minimum balance requirements, and you can switch your earning preference between airline miles and cash interest.
One major drawback is that the mileage earning rate can change over time, and the miles you earn do not count as Loyalty Points, which are used to determine American Airlines’ elite status.
Closing Thoughts
If you’re a frequent American Airlines traveler or looking for a unique savings account experience, the Bask Bank Mileage Savings Account may be worth considering. With its no-fee structure and FDIC insurance, it’s a low-risk opportunity to earn miles or cash interest. Bask Bank’s partnership with American Airlines and its AAdvantage program is a unique way to combine your banking and travel needs. So, why not give Bask Bank a try and start earning miles or cash interest today?
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