Bask Bank Savings Account Review [2023]

Navigating through the vast world of banking often feels like wading through a dense forest. With an overwhelming number of options, the journey towards selecting the right bank for your needs can be daunting. But fear not! Here’s your ‘compass’ to safely navigate the ‘banking wilderness’. Today, we take a magnifying glass to Bask Bank’s Savings Account.

Key Takeaways

  1. Bask Bank is an online-only bank that rewards customers with American Airlines AAdvantage® miles instead of traditional cash interest.
  2. There are no minimum balance requirements or monthly maintenance fees associated with a Bask Bank savings account.
  3. The miles earned through a Bask Bank savings account are FDIC insured and do not expire as long as the account remains active and in good standing.
  4. Bask Bank’s unique offering can be advantageous for frequent American Airlines travelers, but may not be as beneficial for those who don’t travel much or prefer cash interest.
  5. Evaluate your financial goals and lifestyle needs before deciding whether Bask Bank’s savings account is the right choice for you. Consult a financial advisor for personalized advice.

What is Bask Bank?

Before we delve into the specifics, let’s break down the basics: Bask Bank is an online-only bank, which means you do all your banking on the Internet without having to worry about physical branches. Bask Bank sets itself apart in the banking ‘forest’ by its unique approach to interest. This financial institution offers customers American Airlines AAdvantage® miles instead of traditional cash interest.

Key Features of the Bask Bank Savings Account

Here’s what you get when you choose a Bask Bank Savings Account:

  1. AAdvantage® Miles Instead of Traditional Interest: Bask Bank is the first bank in the U.S. to offer AAdvantage® miles as savings account ‘interest’.
  2. No Monthly Fees or Minimum Balances: Like many online banks, there’s no minimum balance required to open your account and no monthly maintenance fees.
  3. FDIC Insured: Although Bask Bank is a digitally native bank, it still provides peace of mind to customers as it’s a division of established institution Texas Capital Bank and is FDIC insured up to $250,000.
  4. Miles Earned Do Not Expire: A positive point for frequent flyers is that the mileage rewards you earn will not expire as long as your account stays open and in good standing.

Deeper Analysis of Bask Bank’s Key Features

Now let’s examine in more detail why Bask Bank’s unique offer may or may not be advantageous for savers.

Here, we could delve deeper into each benefit, shedding light on how the mileage rewards work and comparing them with the regular interest given by other banks.

Is Bask Bank Right For You?

The appeal of Bask Bank largely depends on how often you fly with American Airlines. If you are a frequent traveler, this account could potentially lead to hefty savings.

However, if travel isn’t a major part of your life, the lack of traditional interest could be a disadvantage. In this case, you could be better off choosing an online savings account that offers a high APY.

It’s also worth noting here that the value of your ‘earnings’ could fluctuate since American Airlines, like all airlines, occasionally adjusts its award chart.

Just as every ‘trail’ leads to a different destination, choosing a bank is uniquely personal; what works for one person may not work for another. It’s essential to consider these factors before choosing Bask Bank or any other financial institution.

Conclusion

Navigating your finances can be quite the journey, but we hope this exploration of Bask Bank’s unique mileage savings account helps guide you.

Always remember: choosing a bank is a significant decision, and it’s crucial to ensure it aligns with your financial goals and lifestyle needs. Enjoy the journey, and safe travels on your personal finance adventure!

Important Trail Mark: Disclaimer

This article is for informational purposes only. It’s always recommended that you get in touch with a financial advisor before making any big banking decisions. Your financial wellbeing is dependent on making informed decisions, like choosing the appropriate trail when hiking.

Frequently Asked Questions

What is Bask Bank?

Bask Bank is an online-only bank that offers customers a unique approach to interest through American Airlines AAdvantage® miles. Instead of earning traditional cash interest, customers earn miles with their savings account.

Can I earn traditional cash interest with Bask Bank?

No, Bask Bank savings accounts exclusively offer AAdvantage® miles as the form of interest earned.

Is there a minimum deposit required to open a Bask Bank savings account?

No, there is no minimum deposit or balance requirement, and there are no monthly maintenance fees associated with a Bask Bank savings account.

Are the miles earned with Bask Bank Savings Account taxable?

Yes, the miles earned are considered taxable income. Bask Bank will issue a 1099-MISC form to report the value of the miles earned in a calendar year.

Are Bask Bank savings accounts FDIC insured?

Yes, Bask Bank is a division of Texas Capital Bank and is FDIC insured up to $250,000.

Do the AAdvantage® miles earned expire?

When earned through the Bask Bank savings account, the AAdvantage® miles do not expire as long as your account remains active and in good standing.

Can I transfer my AAdvantage® miles to another airline or rewards program?

No, the miles earned from a Bask Bank savings account can only be redeemed through the American Airlines AAdvantage® program.