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Bask Bank boosts mileage on your AAdvantage savings account — what you need to know


Editor’s Note: This post has been updated with the latest information.


Bask Bank and American Airlines now have a partnership that allows AAdvantage members to earn interest in the form of miles, meaning members will earn travel rewards instead of interest on their money. This can be advantageous if you take it seriously Convenient miles very high – especially given the relatively low rates of return for many savings accounts.

On Monday, Bask Bank announced that it will once again increase the earning rate on its Mileage Savings Account. This time, the speed increased from 1.5 miles to 2 miles per year. Depending on how much money you keep in your Bask Bank account, this could mean accumulating thousands of extra AAdvantage miles each year.

Let’s take a closer look at Bask Bank’s new Miles Savings Account rates and how you can use the account to earn miles from your cash savings.

New Bask Bank AAdvantage Earning Rate

Bask Bank is currently awarding extra miles for savings with its Miles Savings Account. ZACH GRIFF/THE POINT

Effective December 1, Bask Bank increased the earning rate on its Miles Savings Account from 1.5 miles to 2 miles for every dollar saved per year. This new earnings rate applies to new and existing Bask Bank accounts.

TPG present value AAdvantage miles at 1.77 cents per person, giving you a return of 3.54% on the annual amount effectively. In fact, this number could be much higher or lower depending on how you choose to redeem your miles.

This is a much higher rate of return than most traditional banks offer for savings accounts. For example, Chase’s standard savings account yields only an annual percentage rate of 0.01% on deposits. Likewise, at the time of writing, many High interest savings account like Marcus of Goldman Sachs earns 3.0% APY.

Bask Bank Interest Savings Account currently earns APY 3.85% (to be exact as of December 1, 2022), better than most other accounts. Do the math and see if it makes more sense to earn cash or miles from your savings. Sometimes it may be worth splitting your savings between a Bask Mileage Savings Account and a traditional savings account to diversify your income.

Related: How to earn miles in the American Airlines AAdvantage program

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What is Bask Bank Mileage Savings Account?

You can earn miles to redeem for your next big AAdvantage with Bask Bank. ZACH GRIFF/THE POINT

Bask Bank Miles Savings Account is a savings account that accrues AAdvantage miles instead of interest on the deposit. The bank is owned and operated by Texas Capital Bank, so all funds are insured by the Federal Deposit Insurance Corporation. There are no monthly account fees to keep your Mileage Savings Account open, no matter how much you deposit.

Miles earned with the Miles Savings Account are accrued daily and then deposited into your AAdvantage account monthly. Your monthly payment is based on your account’s average monthly balance. This mileage is the interest you earn on your savings, so no cash interest is charged on the deposit amount.

For example, if you keep $70,000 in your Mileage Savings Account for one year, you’ll earn 140,000 AAdvantage miles based on a new earning rate of 2 miles for every $1 saved. This comes to about 11,667 AAdvantage miles per month — though the daily accrual process means you’ll earn a little more in the 31-day months and a little less in other months.

In a word, 140,000 AAdvantage miles is more than enough for a business class return ticket to Europe when there is room for the savings bonus.

It is worth noting that Bask Bank regularly offers signup bonuses to new members. Right now, you can Earn 5,000 loyalty points when you keep a balance of $25,000 for 90 consecutive days out of the first 105 days after initial account opening. You must deposit within 15 days of opening a new Miles Savings Account. This is only available to new Bask Bank members.

If you have cash in a savings account and want to accumulate miles, Bask Bank could be a good choice. Just keep in mind that in addition to the signup bonus, you don’t earn Loyalty Points with Bask bank. So if you’re chasing AAdvantage elite status this year, check it out TPG’s Complete Guide to Earn Loyalty Points for other options.

Finally, it is worth noting that the miles are considered income for tax purposes. Per Bask Bank FAQ page:

AAdvantage Miles issued by Bask Bank to maintain deposit balances are considered interest income. This income will be reported to the IRS and to you in the year in which the mileage is deposited into your AAdvantage account.

As a result, you’ll get 1099 on these earnings, with a taxable value of 0.42 cents per mile.

Related: How do I plan to achieve American Airlines Executive Platinum status with Loyalty Points

bottom line

Bask Bank has increased the earning rate on its Mileage Savings Account from 1.5 miles per dollar saved annually to 2 miles per dollar saved annually.

Depending on how you value AAdvantage miles, this can be a great way to accumulate miles from your savings. Just make sure you’ve analyzed the numbers (and checked with a financial advisor) to see if it makes sense to earn miles instead of interest on your savings. Like anything in the world of points and miles, AAdvantage miles may be depreciated without notice, reducing the value of the interest you’ve earned on your savings.

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