Bask Bank Review

Bask Bank Bask Interest Savings Account

4.85% APY

Through its Mileage Savings Account, Bask Bank provides a rare opportunity to combine your banking and airline mileage needs into a single, easy-to-manage account. In fact, for every dollar you save in your account annually, you’ll earn two American Airline AAdvantage® miles.

Through Bask's Interest Savings Account, which was launched in February 2022, the bank offers savers an unusually high annual percentage yield (APY). Just keep in ming the rate is variable and can change at any time, though in a rising interest rate environment that's an attractive feature.

There are no hoops to jump through to become a customer of Bask Bank. New customers can open an account with any amount of money, and all balances are eligible for mileage and interest earnings. Bask Bank doesn’t charge any account fees, ensuring that everything you deposit stays in your pocket. The bank's two savings accounts also don't have any minimum deposit requirements, meaning you can open an account with any amount of money. However, to open a Bask CD, you'll need at least $1,000 ready to deposit.

Bask Bank is an online and mobile-based bank that was launched in January 2020. That means Bask Bank does not operate any branches like a typical brick-and-mortar bank.

As a result, you’ll need to take care of all of your account management needs through Bask Bank’s online and mobile banking platforms. However, you can reach the bank's customer service over the phone and by email if you have more in-depth questions.

Products Offered

Bask Bank Overview

Bask Bank is an online and mobile bank that allows customers to earn American Airlines AAdvantage® miles in its Mileage Savings Account and in its Interest Savings Account earn a high annual percentage yield (APY). The bank is a division of Texas Capital Bank, N.A., a 22-year-old financial institution that’s based out of Dallas, Texas; it’s FDIC insured, so your savings are federally insured up to $250,000.

Bask Mileage Savings Account

The first characteristic you might notice about the Bask Savings Account is that it doesn’t earn interest like a normal, APY-focused savings account. Instead, account holders will earn two American Airlines AAdvantage® miles for each dollar that they save annually. According to the bank’s website, “miles are accrued daily and awarded monthly based on your average monthly balance.”

Here’s an example that assumes your account’s average monthly balance in, say, October was $25,000:

• Divide your $25,000 average monthly balance by 365: $25,000 ÷ 365 = 68.5
• Multiply 68.5 by the number of days in October: 68.5 x 31 = 2,124
• Multiply 2,124 by 2 AAdvantage® miles: 2,124 x 2 = 4,248
• For the month of October, you’d earn 4,248 AAdvantage® miles

This account comes with no minimum opening deposit requirement and $0.01 balance minimum for earning rewards. It also has no account fees of any kind, ensuring that every dollar you deposit remains yours. The account is accessible through Bask Bank’s online banking website and Apple and Android mobile banking apps.

Bask does not currently offer this as a joint-ownership account, and you can only open one individual account.

Bask Interest Savings Account

Bask Bank's Interest Savings Account offers one of the best savings rates currently on the market. In fact, account holders will receive a 4.85% APY on their balance. That's many times higher than the national average APY for savings accounts, according to the FDIC.

There's no minimum balance and no monthly maintenance fees with the Interest Savings Account. Per federal law, account holders are permitted six transactions a month and can schedule recurring deposits and check their balances online. In addition, they can transfer money, although the wire transfer fee is $35.

Interest is compounded each day and credited to your acccount at the end of the statement cycle. The bank does not offer debit or ATM cards, though customers can access their funds at any time with an ACH transfer to another bank where they have an account. 

This account is accessible through Bask Bank’s online banking website and Apple and Android mobile banking apps.

Bask Certificates of Deposit (CDs)

Being that Bask Bank is a savings-centric financial institution, it should come as no surprise that it also offers its customers certificates of deposit. These accounts work just like any other CD at another bank, as you'll agree to lock your money up for a set amount of time in exchange for an interest rate. Generally speaking, the longer the term you select, the better your rate will be.

Bask requires customers to deposit at least $1,000 when they open a new CD. There are four terms available to account holders, including six months, one year, one-and-a-half years or two years. There are no monthly fees associated with Bask's CDs, though you may get charged a fee if you make a withdrawal from the account before the term is up.

Where Can I Find Bask Bank?

As an online-only bank, Bask Bank’s services are only available through its web- and mobile-based platforms. Prospective customers in all 50 states are able to open an account with Bask Bank.

What Can You Do Online With Bask Bank?

Bask Bank’s online and mobile portals have the same functionality. Available services include:

• View past and present account statements and available balances
• Set up recurring and scheduled deposits to your account
• Link and unlink AAdvantage® accounts and outside bank accounts
• Make deposits and initiate transfers
• Use Bask Bank’s calculator to figure out what you can expect to earn in AAdvantage® miles

Bask Bank’s Apple and Android mobile apps have been received well, with reviews averaging out to over a 4-star rating out of 5 between the two app stores. In terms of browsers, the bank supports Firefox, Google Chrome, Safari and Edge.

How Do I Access My Money?

To access the funds within either your Bask Interest Savings Acccount or your Bask Savings Account, you’ll have to transfer your money from this account to one at another financial institution. That’s because Bask Bank does not offer any ATM access or debit cards, though this is not an uncommon setup for an online savings account.

According to Bask Bank’s website, transfers can take anywhere from one to three days to process. Bask Bank does not charge any fees for doing this, though transfers are capped at $100,000 per day (up to three times per month).

If all you want to do is check your Bask Bank account balance, log in to your online/mobile account to view your current and available balances.

How Can I Save More Money With a Bask Mileage Savings Account?

In most cases, airline mileage can only be earned when you fly the airline, use a specific credit card, make purchases through a certain vendor or meet another set of stipulations. But for anyone that travels frequently, for either work or pleasure, Bask Bank offers a low-risk and deposit-based approach for building up your base of AAdvantage® miles.

A single AAdvantage® mile is worth a minimum of about one cent in real world value, which means the Bask Savings Account effectively has a minimum 1.00% annual yield. Therefore, if you deposit $25,000 in this account and don’t add any extra money over the course of a year, you’d earn 25,000 miles, which is roughly equivalent to at least $250 in travel benefits through the AAdvantage® program. For context, the top high-yield savings accounts are currently offering interest rates in the neighborhood of 0.50% to 0.80%, which means Bask is offering great value.

Depending on how you redeem your AAdvantage® miles, they could be worth more than one cent. However, because of the nature of mileage, there’s always the chance that your miles expire or you do not accrue enough to purchase the rewards you’re seeking.

What’s the Process for Opening an Account With Bask Bank?

Bask Bank allows new customers to open a savings account through either its online or mobile banking platforms. As with any other financial institution, the account opening process typically requires information like your full name, address, contact information and Social Security number.

There are three ways to fund your Bask Savings Account:

• Initiate an ACH money transfer from an account at an outside financial institution
• Set up a wire transfer from an account at an outside financial institution
• Deposit funds into your account using the mobile check deposit feature through Bask Bank’s apps

What’s the Catch?

Bask Bank only offers savings products to its customers. By contrast, many competitors in the banking space will also have checking accounts, money market accounts and more. So if you’d prefer to manage all of your money at a single bank, Bask Bank may not be for you.

While the mileage-based earnings that Bask Bank offers with its Mileage Savings Acccount are substantial, they are inherently much less flexible than cash. That’s because you’re locked in to spending miles on very specific purchases (flights and other travel purchases with American Airlines and select partners), whereas cash can be used anywhere.

Further, the value of the miles you’ll earn could be lower than what you’d earn in interest from some of the top savings accounts. The redemption value of AAdvantage® miles varies depending on how you use them, but if you redeem at a rate of 1 cent per mile, your effective return on this account is 1%; a $25,000 balance in the Bask Savings Account would therefore earn you about $250 in travel in a year (excluding any additional earnings from promotional offers).

The only real catch with the Interest Savings Account is that the APY is variable so when interest rates are falling, account holders may see their earnings dip before savers using more conventional accounts whose APY don't change as quickly.

Bottom Line

Bask Bank's Mileage Savings Account is a highly specialized offering that’s obviously directed at frequent flyers that usually travel with American Airlines. That’s not necessarily a bad thing, though, as the account’s minimum- and fee-less nature, along with American Airlines’ overall popularity, make it an accessible option for just about anyone. The bank's Interest Savings Account offers an unusually high APY with no fees and minimums. Just about anyone could benefit from an account like that.