Bask Bank is a bit of an odd duck: an online-only bank that offers a savings account that garners American Airlines AAdvantage® miles rather than interest. Still, Bask’s traditional savings account and certificates of deposit (CD) offer high yields — making it a good depot for your emergency fund. But you won’t find checking accounts or other staples typically provided by financial institutions.
Account details and annual percentage yields (APYs) are accurate as of September 11, 2023.
Bask Bank basics
- Checking accounts: None.
- Savings accounts: Bank Interest Savings Account and Bask Mileage Savings account.
- Money market accounts: None.
- Certificates of Deposit (CDs): Four CDs, with terms of six, 12, 18 and 24 months.
- Other accounts: None.
- Bank branches or online only: Online only.
Pros
- Competitive rates. You’ll earn 5.00% APY on the Bask Interest Savings Account, which is among the highest rates you’ll find on the market today. The bank’s CD options, which range between six and 24 months, are likewise high-yielding. If you’re going to use Bask, chances are this is why.
- No service fees or minimum balance. High yields matter little if they’re accompanied by usurious fees. Fortunately, Bask’s savings accounts and CDs eschew most typical fees you’ll find at traditional banks and don’t contain minimum balance requirements.
- Earn rewards miles from American Airlines miles. The Bask Mileage Savings delivers American Airlines AAdvantage miles instead of interest; you’ll earn 2.5 miles for every $1 in your account annually. The exact value of a mile depends on how you redeem them, but USA Today Blueprint estimates that an American airlines reward miles is worth $0.0149, meaning you’ll net roughly $0.037 on each dollar saved.
Cons
- No in-person branches. The tradeoff for high yields is a lack of bank branches. Therefore, you should only go with Bask if you’re comfortable doing all of your savings remotely.
- Limited account offerings. Bask does not offer other accounts such as a checking account or loans. If you want to do all your banking with one institution, then you’ll need to look elsewhere.
About Bask Bank
Bask is a division of Texas Capital Bank which opened in 1999.
The bank focuses on providing savings accounts and CDs only. Their Bask Mileage Savings Account is a truly unique product, where it earns American Airlines AAdvantage miles instead of interest.
Savings
There are two kinds of savings accounts at Bask Bank. Neither charge monthly fees or require minimum balances. One account is geared toward an individual who is seeking higher interest rates while the other one is advantageous for travelers who want more airline miles and fly primarily with American Airlines.
The Bank Interest Savings Account offers a current APY of 5.00%, which is a major reason why it is one of our favorite high-yield savings accounts. It does not require a minimum balance but the company does have the right to close the account if it has a zero balance for 15 days or more. Doesn’t mean they will close it, just that they can.
The Bask Mileage Savings account is unique because you can actually earn American Airlines AAdvantage miles instead of interest. You will earn 2.5 American Airlines AAdvantage miles for every $1 in your account annually. Miles accrue daily and are awarded monthly based on your monthly account balance.
How does this work? Let’s say you have $10,000 in the bank starting in January, and don’t add to it. At the end of the month you would have earned 2,123 miles. USA Today Blueprint values a point as worth $0.0149, which means the value of your points earned in January would be nearly $32.
All else being equal, then, you’re better off with the regular savings account. (You’d earn nearly $42 in interest for the month).
However, if you’re a frequent American flier and adept at playing the airline mileage game, you might prefer the miles. Keep in mind, your miles are applied to your AAdvantage account but they do not count towards building elite status.
The Bask Mileage Savings Account also has a welcome offer of 5,000 Bonus AAdvantage miles for new customers who open an account online. You’ll need to maintain a minimum daily balance of $25,000 for 90 consecutive days out of the first 120 days from account opening.
CDs
Bask Bank has CDs ranging from six to 24 months and they require a $1,000 minimum deposit.
Their terms and APYs are as follows:
These rates compare favorably with the best CDs on the market. However, the lack of available terms (nothing longer than two years), limits its overall appeal.
Still, you can use some to build out a CD ladder. For instance, you might add a three-month CD from another institution, and then add Bask’s six-month option.
How does Bask stack up
Bask Bank vs. Ally Bank
Ally Bank offers 4.25% APY on its savings account, which is quite a bit less than Bask’s 5.00% APY. However, Ally doesn’t have an account that earns AAdvantage miles.
Ally has a larger suite of products including a checking account, credit cards and loans. If you are looking for a bank for all your banking needs, Ally may be a better choice.
Bask Bank vs. Discover Bank
Discover Bank’s online savings account earns 4.30% APY, which again is less than what you can earn at Bask.
Like Ally, Discover does not have an account that earns AAdvantage miles. However, it does have a checking account and several types of loans, such as student and personal loans, plus their ever-popular credit cards.
Bask Bank vs. CIT Bank
CIT Bank’s Platinum Savings account actually beats Bask at 5.05% APY — but only on balances over $5,000 and there is a $100 minimum deposit to open the account.
CIT also offers a checking account and mortgages, which Bask does not.
Frequently asked questions (FAQs)
Bask Bank is a division of Texas Capital Bank, which is FDIC-insured. The FDIC insures deposits up to $250,000 per depositor per account.
Bask Bank does not have any brick-and-mortar branches, they operate 100% online.
Bask Bank is a legitimate bank and is a division of Texas Capital Bank.
