Update 5/1/23: The Bask Bank Mileage Savings Account now earns 2.5 Miles per $1 Saved Annually.
Effective today Bask Bank is now awarding 2 American AAdvantage miles per dollar annually on its Bask Mileage Savings Account, an increase of 1/3 over the previous 1.5 miles per dollar and double where the earn rate was in July.
Regular earn is now 2 AAdvantage miles per dollar annually. I value American Airlines AAdvantage® miles at 1.3 cents apiece so earning 2 miles per dollar on deposit per year is equivalent in my view to ~ 2.6% 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 3.725% which is close to top of market. That’s before the value of the account opening bonus. And of course many (most?) would value the AAdvantage miles more highly than I do, making it even more advantageous still.