Coming Soon: Earn Loyalty Points Towards American Airlines Status With New Savings Account

I receive compensation for content and many links on this blog. Citibank is an advertising partner of this site, as is American Express, Chase, Barclays and Capital One. Any opinions expressed in this post are my own, and have not been reviewed, approved, or endorsed by my advertising partners. I do not write about all credit cards that are available -- instead focusing on miles, points, and cash back (and currencies that can be converted into the same). Terms apply to the offers and benefits listed on this page.


Update 9/12/22: The Annual Percentage Yield (APY) on the Bank Interest Savings Account has increased from 2.20% to 2.53%.

Update 9/26/22: The Annual Percentage Yield (APY) on the Bank Interest Savings Account has increased from 2.53% to 2.75%.

Update 10/4/22: Bask Mileage Savings Accounts now earn even more miles: 1.5 AAdvantage® miles for every dollar saved annually.

Update 10/13/22: The Annual Percentage Yield (APY) on the Bank Interest Savings Account has increased from 2.75% to 3.05%.

Update 11/2/22: The Annual Percentage Yield (APY) on the Bank Interest Savings Account has increased from 3.05% to 3.60%.

Update 11/30/22: The Annual Percentage Yield (APY) on the Bank Interest Savings Account has increased from 3.60% to 3.85%.

Update 12/1/22: Bask Bank Mileage Savings Accounts now offer 2 American AAdvantage® miles per $1 saved annually.



Starting in just a couple of weeks there will be an opportunity to earn 5,000 AAdvantage® Loyalty Points without spending any money. That’s because Bask Bank* will be introducing a limited-time account opening bonus for their Bask Mileage Savings Account which awards Loyalty Points for new accounts.

Between September 15, 2022 and December 15, 2022 Bask Bank will offer 5,000 Loyalty Points for holding a minimum daily account balance of $25,000 for 90 consecutive days.

  • First time Bask Mileage Savings Account holders only
  • Open an account during the offer period and fund it with $25,000 within 15 days of 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
  • And as long as you’ve provided Bask Bank with an AAdvantage® account number in the same
    name as the Bask Mileage Savings Account, they’ll award 5,000 Loyalty Points

I view this as a big improvement over the current account opening bonus of 1,000 AAdvantage® miles for holding a minimum daily account balance of $5,000 for 90 consecutive days.

And this is a great opportunity since Bask Bank has also increased the earning on its Bask Mileage Savings Accounts. You will earn 20% more miles for your savings than before – in addition to earning credit towards status with the airline.

Benefits Of Status

This offer for opening a new Bask Mileage Savings Account can help you earn AAdvantage® status.

Some of the key benefits of status include,

  • Upgrades for the member and a companion for all status members. Executive Platinum members are eligible for upgrades on award tickets. This applies to U.S. domestic flights as well as between the U.S. and Canada, Mexico, the Bahamas, the Caribbean, Bermuda and Central America (based on availability). American still upgrades from economy to business class, even on aircraft with premium economy!

  • Partner benefits. Status is recognized with benefits on Alaska Airlines and JetBlue, as well as on oneworld partner airlines and other partner airlines around the world like Brazil’s GOL. Executive Platinum and Platinum Pro members receive complimentary upgrades on Alaska Airlines.

  • Benefits during travel. Priority check-in, standby, security and boarding. Free checked baggage allowance and (Platinum members and above) priority bag delivery. For Platinum Pro members and above, complimentary same-day flight changes.

  • Additional travel benefits> Complimentary better seating on the aircraft, including access to complimentary Main Cabin Extra seats as well as a status reservations desk.

I actually think American’s new way of earning status makes frequent flyer programs fun again. You can chase status in all sorts of ways. And one of the easiest, starting September 15 and which doesn’t require spending money, is opening and funding a new Bask Mileage Savings Account.

This Bonus Is Perfectly Timed

This offer for a new Bask Bank Mileage Savings Account will let you earn Loyalty Points towards your status with American Airlines this year – or next year – depending on when you open and fund the account.

Something that is not yet well understood is American Airlines has changed the qualifying period for earning status. The Loyalty Points-earning year runs March through February of each year (not January – December). For 2022 earning there’s an extra two months, since January 2022 and February 2022 also count.

  • If you take advantage of the offer at the start of the promotion in September, you can earn bonus Loyalty Points as soon as December. That means the Loyalty Points bonus counts towards the current status you’re working on.

  • If you open your account in December then meeting the terms of the offer happens no earlier than March 2023. That means Loyalty Points will be deposited during the new qualification year.

You can use this great offer to put you over the top for the status you’re earning now, or jump start your status-earning for next year, depending on your strategy and situation.

How Valuable Are 5,000 Loyalty Points?

If the 5,000 Loyalty Points you earn put you over the top towards a status level, they’re incredibly valuable – since these are the points that are delivering status benefits on American Airlines like free checked bags, extra legroom seating, and priority for upgrades.

On the other hand, if you want to visualize the value in terms of an average per Loyalty Point, based on how much you think a Loyalty Point is worth, then here’s one way to think about it. You can impute a rate of return based on how much each Loyalty Point is worth, considering you’re earning this large ‘extra value’ after just 3 months.

If You Value Each Then After 3 Months Which Is Like
Loyalty Point At… Value You Can Get Additional APY
$0.01 $50.00 0.8%
$0.02 $100.00 1.6%
$0.03 $150.00 2.4%
$0.04 $200.00 3.2%
$0.05 $250.00 4.0%

Bask Bank Has Increased Mileage Earning, Too

Since launch, the Bask Mileage Savings Account* has earned 1 AAdvantage® mile for every dollar saved annually. That has now increased to 1.2 miles earned for every dollar saved annually – a 20% increase.

If you save $25,000 for a year, you’ll earn 30,000 miles. I value those miles at $390.

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 (APY).” 30,000 miles are considered worth $126.

If you pay taxes on those miles with a hypothetical income tax rate of 32%, you’re paying $40.32 in taxes and I’d consider you to be netting $349.68 in value. When you factor taxes into a traditional savings account return this is quite high. And note that other sites evaluating these miles, like One Mile at a Time and The Points Guy assign a value that’s 15% – 36% higher than mine.

How I Use Bask Bank

I have more miles in American’s program than in any other, and I still earn more. This is the currency I’ve used most for my own travels.

Since I’m a current Bask Bank Mileage Savings Account customer, I’m not eligible for this offer, however I’m benefiting from mileage-earning for my savings and indeed I am benefiting at a faster rate than before. I’ve been a customer of Bask Bank’s parent Texas Capital Bank, though BankDirect, since the summer of 2003 – so 19 years – which is longer than I’ve had an open account with any other financial services company. I set aside money in the account for property taxes and for other taxes.

Bask Bank also offers an interest-earning savings account, so you can easily move money back and forth when you prefer to earn miles or prefer interest. And the APY on their interest-earning account is an aggressive 2.20%**. (Update 10/13/2022: APY has increased to 3.05%.)

*Bask Bank is a division of Texas Capital Bank, Member FDIC. The sum of your total deposits with (i) Bask Bank; (ii) Texas Capital Bank; and (iii) any other division of 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 OCTOBER 13, 2022. APY may change at any time before or after account is opened. No minimum balance requirement and no monthly account fees.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Bask has crappy customer service and responds to email inquiries only in about 2 weeks. That’s a Texas bank for you. Unregulated and not consumer orientated.

  2. So, is this saying that a current Bask Bank customer is Not eligible for the ‘new’ Loyalty Points’ account? Am I to assume that is the reason You are not eligible? Therefore the Loyalty POint account is only good for brand new bank customers.

  3. I already have a savings account at Bask, so does this mean the miles we earn going forward each month will now also count toward Loyalty Points? That would be awesome.

  4. I’ve been a Bask customer for almost two years. I find their customer service to be excellent, and very responsive. No bank or S & L offers higher interest rates. I started with an AA account and have earned more than 1 million AA miles.

  5. The 20% increase for existing customers isn’t competitive – and only loyalty points for new customers is the opposite of rewarding loyalty

    If they’re wondering where their deposits have gone…they should step up to the plate for existing accounts – 1.5-2x miles per dollar, loyalty points tiers on balances

  6. While 2.2% APR is competitive, the current 7-Day yield of Vanguard VMRXX (Cash Reserves Federal Money Market Fund Admiral Shares) is 2.19% and Vanguard is very easy to deal with.
    If you want to park money for longer time, go with Schwab CDs:
    1-3 Month CDs 2.88% APY
    4-6 Month CDs 3.18% APY
    7-9 Month CDs 3.26% APY
    10-18 Month CDs 3.35% APY
    Of course, it is you money to decide…

  7. I guess I am confused. I clicked the Bask bank link at the top and the first page says the following.

    “Please note, however, that AAdvantage® miles awarded through Bask Bank do not apply toward boosting your elite status.”

    Do they need to update their terms and website?

  8. Reading comprehension lacking in the comments section. It’s a loyalty point bonus only. “Interest” earned is still only redeemable miles which don’t count as loyalty points.

    Another good calculation is how costly accruing 5k loyalty points is for you if actually flying. As a Plat Pro looking to re-qualify, that’s over $555 in airfare one wouldn’t need to spend.

  9. @305: Yes, looking at the comments one begins to understand why they always explain how to fasten and unfasten a seatbelt.

  10. Some of us old-timers remember when Waterhouse (from 1999-2012) offered 250 American miles per quarter just for having an account open, plus even more miles for cash balances. Then again, I still fondly reminisce about their 3% unlimited cash back credit card, on which I charged my entire MBA degree (and put my federal loan for that degree into a 6% interest account instead, netting 9% a year on my cash). Ah, I loved the 90’s.

    Now we have amateurs running around town buying $100 of Visa gift cards with discounted activation fees and calling it a ‘profit’.

  11. I thought that Bask bank savings does not count toward the AA status tiers. Am I wrong about this? If so 200K would earn 240K which would be EXEC plat? Appreciate anything on this. Also per Bask bank and a few complaining comments here which seem to be politically motivated. The bank has a fairly competitive 2.20% savings rate. You can move money between both. Previously for the past 10+ yrs interest rates were low. Bask was paying I think 1.5%. But to me the AA miles were worth more than 1.5 and the tax cost was also less. I needed to reload some AA miles. Everyone has a different idea. My bookings recently have far exceeded what that original rate was. Then Bask raised to 2.2% and was flooded with tons of emails. These companies cannot handle tons of calls. They cant do that and make money. So many people call with weird stuff. So they got blasted with tons of emails. I never had a single issue with them in more than a yr and they did answer my emails. Now the scale is 1.2 miles to remain competitive against the cash rate 2.2% Maybe the cash rate is slightly ahead but after taxes. I have been in miles and points a long time. I have met Gary a number of times and find him to be freindly and funny as a speaker. The miles and points game is much different now than yrs ago with the Flyertalk seminars. Everyone has their own USE case. What works for me, maybe not you. I have a business so I can generate more than some people. Different use cases. BTW I know two people personally who spend upwards of near a million a month on Marriott Bonvoy Amex cards. When I tell them there are better or more varied programs they say they want to keep it simple. So that works for them. And thats one million or more =2 million Bonvoy points per month. I did miss the Simply Miles deal because I originally did not have an account and after I registered the offer did not show for me. I would have bought a few million miles. Yes I know it’s a gamble against devaluation, but I felt that I would find a way (as I have) over the years to get good low-level awards, which I do on all the programs. I am not a booking expert and I do not try to do complex multi-stop trips either. Usually, I go to a region or a country or two. And the same thing applies. While an around-the-world multi-stop trip for me doesn’t excite me, it does for others.. Now as far as short-term cash money you can get 2.6-2.7% are the highest rates I know other than ones I know other than some T-Bills, short to mid-range. Short-term money market 2.6-2.7. Those are not limited to a dollar figure like a gimmick rate of 4% up to 5K or something. So the way I look at it 2.7% or 1.2 air miles. Now it looks somewhat less favorable on the miles, (assuming all or nothing) But if I can earn Plat is it worth it to me. I did hear to dont get the upgrade certs if you earn on spend. Those certs are not easy to use anyway if you cant clear in advance which seems to be the case. So if I plan many AA future flights and nail enough upgrades? The interest rate meeting is next week. Rates are going higher again. So Bask may adjust to 2.6 and maybe 1.5 miles?

  12. @Tino I have some great TD Waterhouse (WATER HOSE) stories for you. But I have a 3% Cash back credit card Visa that also gets me 5% Supermarkets unlimited. Not kidding.

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