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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.
There’s also a compelling offer for opening a new Bask Mileage Savings Account by December 15, 2022: new accounts that hold a minimum daily balance of $25,000 for 90 consecutive days earn 5,000 American Airlines AAdvantage Loyalty Points.
- You must be a first time Bask Mileage Savings Account customer and successfully open an account during the offer period.
- Fund the account with $25,000 within 15 calendar days following initial account opening.
- Maintain a $25,000 minimum daily account balance for 90 consecutive days out of the first 105 days following the initial account opening.
- Provide Bask Bank with an AAdvantage® account number in the same name as the subject Bask Mileage Savings Account.
The Loyalty Point new account bonus offer is on top of the regular earn, that’s 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.