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Update 5/1/23: The Bask Bank Mileage Savings Account now earns 2.5 Miles per $1 Saved Annually.
Update 12/1/22: Bask Bank Mileage Savings Accounts now offer 2 American AAdvantage miles per $1 saved annually.
Effective today Bask Bank is now awarding 1.5 American AAdvantage miles per dollar annually on its Bask Mileage Savings Account, an increase of 25% over the previous 1.2 miles per dollar. And that rate had only gone into effect on August 1. From the time of product inception (about two and a half years ago) until that point, the account had earned 1 mile per dollar. So that’s a 50% increase in earn rate in just over two months.
Regular earn is now 1.5 AAdvantage miles per dollar annually. I value American Airlines AAdvantage® miles at 1.3 cents apiece so earning 1.5 miles per dollar on deposit per year is equivalent in my view to ~ 2% APY. 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.
It’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. Net of taxes at a 39% marginal rate the return is roughly equivalent to a savings account that pays 3%. And that’s before the value of the account opening bonus.