Travel

NEW: Earn AAdvantage Loyalty Points With Bask Bank

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I’ve written previously about Bask Bank*, and their Mileage Savings account which earns American Airlines AAdvantage® miles instead of interest. This is a great option for passively accruing rewards that you can redeem for all sorts of flights, from domestic web saver trips to international premium cabin flights.

Having a Bask Mileage Savings Account allowed me to earn tens of thousands of miles even during 2020. The low-interest rate environment combined with the outsized value possible when redeeming AAdvantage® miles made this a no-brainer for me, and Bask Bank continues to be my only savings account.

If you don’t yet have a Bask Mileage Savings Account, there’s a new offer out that is especially compelling for AAdvantage® elites (or aspiring AAdvantage® elites).

Get Loyalty Points With A New Bask Mileage Savings Account

In March of this year, American AAdvantage® transformed elite status qualification, which is now earned exclusively based on how many Loyalty Points you rack up. Every qualifying AAdvantage® mile earned earns you one Loyalty Point. For 2022, AAdvantage® elite status requirements are as follows:

  • AAdvantage® Gold status requires 30,000 Loyalty Points
  • AAdvantage® Platinum status requires 75,000 Loyalty Points
  • AAdvantage® Platinum Pro status requires 125,000 Loyalty Points
  • AAdvantage® Executive Platinum status requires 200,000 Loyalty Points

The AAdvantage® miles you earn by depositing with Bask Bank can be redeemed for travel, but don’t typically earn Loyalty Points.

However, there’s a new, limited-time offer whereby new Bask Bank customers can earn 5,000 Loyalty Points when they open and fund an account between September 15 and December 15, 2022.

Here’s what you need to do:

  1. Be a first time Bask Mileage Savings Account customer and successfully open an account during the offer period (September 15, 2022 – December 15, 2022)
  2. Fund the account with at least $25,000 within 15 days of initial account opening
  3. Maintain a $25,000 minimum daily account balance for 90 consecutive days out of the first 105 days following the initial account opening
  4. Provide Bask Bank with an AAdvantage® account number in the same name as the subject Bask Mileage Savings Account

The Loyalty Points should post within 10 business days of meeting the qualifications. 

On top of that, Bask Bank has updated their mileage earnings rates, so you’ll now earn 1.5 AAdvantage® miles for every dollar deposited annually. That means if you keep that $25,000 in your Bask Savings Account for a year, you’ll earn 37,500 AAdvantage® miles.

30,000 AAdvantage miles could be used for a trip like the one Ford and I took to Ecuador

Note that if you’ve previously had a Bask Mileage Savings account, even if that account is now closed, you are not eligible for the Loyalty Points offer – this Loyalty Points offer is for first time Bask Mileage Savings Account customers only

The full terms of the offer are as follows:

Bask Bank is offering 5,000 AAdvantage® Loyalty Points for customers that (i) are first time Bask Mileage Savings Account customers; (ii) meet Bask Bank’s qualifications to open an account; (iii) complete the online account opening process between September 15, 2022 and December 15, 2022; (iv) fund the account a minimum of $25,000 within fifteen (15) calendar days following the initial account opening; (v) maintain a minimum daily balance of $25,000 for ninety (90) consecutive days out of the first one hundred and five (105) days following the initial account opening; and (vi) provide Bask Bank with an AAdvantage® account number in the same name as the subject Bask Mileage Savings Account. The Bask Mileage Savings Account will reflect the Loyalty Points award within ten (10) Business Days once all of the conditions of this offer have been met. Loyalty Points may take 6-8 weeks to post to the linked AAdvantage® account. This offer is limited to one 5,000 Loyalty Point award for each new customer. Customers who have previously opened a Bask Mileage Savings Account, whether the account is still open or if it has been closed, are not eligible for this Loyalty Point offering. This offer replaces the 1,000 AAdvantage® mile account opening bonus and is exclusive of all other offers and may not be combined with, or in addition to, any other Bask Bank offers of Bonus Miles. For additional information about Loyalty Points click here.

Why Opening A Bask Mileage Savings Account Is Worth It

I think the Bask Mileage Savings account is a great option, and one that has enabled some extra travel for my household. Personally I value AAdvantage® miles at ~1.5 cents each, but that’s a conservative valuation. Based on that, let’s do some math about the value proposition of Bask Bank.

If you were to put $25,000 in a Bask Mileage Savings Account for a year and complete all the requirements:

  • You’d earn 37,500 AAdvantage® miles, which I value at ~$562
  • Bask Bank will issue 1099s for the value of AAdvantage® miles, but they’re valuing AAdvantage® miles at the very conservative amount of 0.42 cents each, so ~$157.50 “worth” in this example
  • Even in the highest Federal tax bracket you’d pay at most ~$58 in taxes at that valuation
  • You’re still netting at least ~$504 worth of miles
  • That’s an annual return of at least 2.01%+ in value

And that’s in addition to the Loyalty Points in the first year. 

Personally, I think the math checks out favorably. When deciding if you feel similarly, you’ll want to consider:

  • How much you value American Airlines AAdvantage® miles
  • How much interest you’d otherwise earn, which is based on all kinds of economic factors
  • What your tax bracket is

For most people who are good at redeeming AAdvantage® miles, I think this is still a very good option in the current interest rate environment, though not as unbeatable as it would have been when rates were down last year.

That said, Bask Bank is currently offering a 2.75% annual percentage yield (APY) on their Bask Interest Savings Account, so if you’d prefer to earn cash rather than miles, that’s an option worth exploring. Of course, you won’t receive Loyalty Points when opening an Interest Savings account, only the Mileage account is extending that offer.

Your savings can take you further
Maximize your return on adventure by earning miles on your savings.

Earn 1.5 American Airlines AAdvantage® miles for every $1 saved annually when you open a Bask Mileage Savings Account.

If it’s a factor, miles also never expire when you have a Bask Mileage Savings Account, since you’ll be earning miles every month, which will keep your AAdvantage® account active. Otherwise, AAdvantage® miles ordinarily expire after 18 months of account inactivity.

Bottom Line

I switched to Bask Bank in 2020, and couldn’t be happier about it. The process has been seamless, to the point where I hardly ever interact with Bask Bank except when I want to transfer more money into my account. I’m typically reminded the account even exists when I see miles deposited in my AAdvantage® account once per month.

If you don’t yet have a savings account, you absolutely should have one, in addition to a checking account. Even if you already have a savings account, a Bask Mileage Savings Account may offer an outsized return if you redeem your miles smartly. 

Plus, the option to earn some extra Loyalty Points could be interesting for those chasing AAdvantage® elite status this year.

*Bask Bank is a division of Texas Capital Bank, Member FDIC. The sum of your total deposits with (i) Bask Bank; (ii) Texas Capital Bank; and (iii) any other division of Texas Capital Bank are insured up to $250,000. Additional coverage may be available depending on how your assets are held.

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