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During the pandemic I refinanced my house at an unprecedented low interest rate, and my mortgage no longer requires escrowing property taxes and insurance. I set aside the money I need for my property taxes in a Bask Mileage Savings Account that earns American Airlines AAdvantage@reg; miles.
I have a full-time job where taxes are withheld from my paycheck, but I also earn income from this website and from occasional consulting work, and I have to make quarterly tax deposits. I’ve been putting that money aside in a Bask Mileage Savings Account as well.
This isn’t money that I can invest long-term, since I’ll need it in just a few months. There aren’t a lot of options I have, then, to invest these funds. A mileage-earning savings account is the perfect solution for me, and I’ve picked up quite a few miles this way.
Bask Bank’s Account Opening Bonus was scheduled to end December 31, 2021. I wasn’t sure it would be extended – in a low interest rate environment I wasn’t sure if they’d want to spend money to encourage people to earn what I consider to be a very high return on a savings account. However they’ve extended the end date on the bonus by six months. You still have an opportunity to open an account and earn the bonus until June 30, 2022.
- You can earn miles without actually spending any money. The thing about a mileage-earning savings account is that you earn miles and you still have your money. Even the best mileage-earning deals usually cost some amount of money. There’s an opportunity cost in terms of the interest you might earn, but I view this as a great deal even in comparison to your other savings account options, as I’ll explain. You can see that I use the account myself – it’s the only savings account that I have.
American Airlines Boeing 787-9 Business Class
- Earn bonus miles for opening the account. Bask Bank is offering 1,000 AAdvantage® miles for customers who have not previously opened a Bask Mileage Savings Account and open an account by June 30, 2022, funding it with at least $5,000 within 30 days of opening and maintaining a $5,000 minimum daily balance for 90 consecutive days (within the first 120 days after opening).
- Earn a high rate of return in miles. I value American Airlines AAdvantage® miles at 1.3 cents apiece so earning 1 mile per dollar on deposit per year is equivalent in my view to a 1.3% APR, which is very high for a savings account. And of course I can get a lot more value out of the miles than that. American Airlines AAdvantage® miles are the currency I’ve redeemed the most, for premium cabin awards on Etihad; Qantas; Cathay Pacific; Japan Airlines; British Airways and more.
Cathay Pacific First Class
- That’s even better on a tax-adjusted basis. Bask Bank did a good job determining how they should be reporting the miles earned as a return on accounts. Bask Bank’s terms and conditions say “[m]iles are currently valued at 0.42 cents per mile, the equivalent of 0.42% annual percentage yield.” So for every 10,000 miles earned on deposits they report a value of $42. I’ve argued that on a tax-adjusted basis return on a mileage-earning Bask Savings Account can be three times as high as a savings account with a 0.5% APR.
- Choose between earning miles or a high rate of interest. Bask Bank recently introduced a high yield savings account called the Bask Interest Savings Account and it’s currently only available to existing customers who have a Bask Mileage Savings Account. (Fortunately if you’re not a current accountholder you can open a Bask Mileage Savings Account and become eligible for their Bask Interest Savings Account.) Update: Now open to new customers as well.
The Bask Interest Savings Account has no monthly account fees or minimum balance requirements, and the current interest is 1.25% annual percentage yield (APY)*, one of the top rates in the market today. Many high yield accounts place limits on how much money will earn a top rate, or time limits for how long you can earn a top rate, pushing you to move your money around or split it up between banks. This is a simple and straight-forward product, and an easy for Bask Bank accountholders to transfer money back and forth between mileage and interest accounts.
A Bask Mileage Savings Account is a great way to earn American Airlines AAdvantage® miles – without spending money. It’s how I put aside cash for short-term needs and I’ve earned more than 50,000 miles this way. Bask Bank has extended the account opening bonus, so you can still earn bonus miles by opening an account now too.
Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC. The sum of your total deposits with (i) Bask Bank; (ii) BankDirect; and (iii) Texas Capital Bank are insured up to $250,000. Additional coverage may be available depending on how your assets are held.
*Annual percentage yield (APY) as of MAY 5, 2022. APY may change at any time before or after account is opened.