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Bask Bank has increased how fast you earn American Airlines AAdvantage® miles by 150% since they launched their Bask Bank Mileage Savings Account just before the start of the pandemic. They now reward you with 2.5 miles per dollar saved annually.
And they’ve just launched a new bonus offer to encourage you to start saving with them, or grow your savings. You can earn up to 20,000 bonus miles on top of the regular miles you earn each month. Existing customers are eligible for this offer, not just new customers.
New And Existing Customers Earn Bonus Miles For New Deposits
Between June 1, 2023 and August 31, 2023 Bask Bank is offering a bonus for new and existing customers who deposit funds into a Mileage Savings Account.
- $10,000 – $24,999.99: 4,000 bonus miles
- $25,000 – $49,999.99: 10,000 bonus miles
- Greater than or equal to $50,000: 20,000 bonus miles
First-time and existing Bask Mileage Savings Account customers who meet the requirements for an open account, and in fact do open their account by August 31, 2023, and add new funds into the account during the promotion period are eligible for this bonus. You can read the full offer terms here.
You’ll need to maintain these funds in the account for 180 consecutive calendar days and provide Bask Bank with an AAdvantage® account number in the same name as the subject Bask Mileage Savings Account. Bonus miles will be awarded within 10 business days after all conditions of this offer have been met.
I’ve had a Bask Bank Mileage Savings Account since they were first offered, and I plan to take them up on this bonus offer. I like that they’re interested in growing the business of existing customers, not just acquire new ones. And I need to put aside money for both income taxes (since I have to pay those quarterly) and property taxes (since when I refinanced my home at a very low rate during the pandemic I stopped having to escrow taxes). Property taxes are… pretty high in Texas.
Bask Bank Has Increased Its Mileage Return 150% Since Launch
Bask Bank offered a pretty good value proposition when they launched their Mileage Savings Account a little over three years ago. They offered a way to earn 1 mile per dollar saved annually – which could add up to a lot of miles without actually spending money. Instead, your opportunity cost was interest foregone and most people weren’t earning very much interest on their cash savings at the time.
The way I thought about this was that $75,000 in a savings account meant enough miles for a one-way business class award ticket between the U.S. and Africa on a partner airline like Qatar Airways.
With interest rates rising, I view them as having kept up around the top of the market. They increased mileage-earning to 1.5 miles per dollar in October, increased it to 2 miles per dollar prior to end of 2022, and then bumped it up to 2.5 miles per dollar this spring. Now you only need to save $30,000 in an account for a year to get that same award. That’s a huge increase in return on your savings.
When American Airlines made their award changes recently they didn’t alter partner award pricing at all, and their executives shared with me not to expect partner award pricing soon either.
Bask Bank Beats Earning Interest For Me
I value AAdvantage® miles at 1.3 cents apiece. Earning 2.5 per dollar saved annually represents to me a 3.25% rate of return. As of this writing, according to the FDIC the average savings account returns 0.40%.
Bask Bank has reported the miles I’ve earned for tax purposes at a value of 0.42 cents apiece. At a current earning rate of 2.5 miles per dollar saved annually, this represents a taxable Annual Percentage Yield (APY) of 1.05%.
Assuming that doesn’t change over the next year, earning 50,000 miles (which I value at $650) saving $20,000 would generate a 1099 tax reporting form showing a value of $210.00. If you pay taxes on those miles with a hypothetical combined federal and state income tax rate of 47%, you’re paying $98.70 in taxes. That means netting $551.30.
Compare that to a hypothetical 4.50% APY. That same $20,000 saved would yield $900, $423 in taxes, and a net of $477. This math even works out favorably compared to a 5% APY savings account. Even at my arguably low valuation of miles you’re beating a very high yield interest offer by earning miles. The more you value the miles, the bigger the difference.
Worth Opening An Account
There is no annual fee for a Bask Bank Mileage Savings Account, and there are no monthly service fees. There’s also no minimum balance required, though if you’re able to make a substantial deposit they’re rewarding that with a lot of bonus miles right now.
I simply think it’s a good idea to have an extra open bank account, that you can link other accounts to, and that’s ready to receive money when you need someplace to send it. I felt that way back during the Great Recession, and it’s something that’s become top of mind again in the past few months. It’s great to add a banking relationship in the current environment, and this one is easy, simple and all online.
Bask Bank is a division of Texas Capital Bank, Member FDIC. The sum of your total deposits with (i) Bask Bank and (ii) Texas Capital Bank are insured up to $250,000 per depositor for each account ownership category.