Bask Bank is an online bank that offers high-yield savings accounts and certificates of deposit (CDs) with competitive interest rates. It has just three banking products, with the most well-known being the Mileage Savings Account, which earns American Airlines AAdvantage miles instead of interest.

As an online bank, Bask Bank does not have physical branches, but it does offer good online and mobile banking options for customers to manage their accounts. The bank also provides customer support via phone, email and online live chat.

Bask Bank has received quite a bit of attention for its mileage savings account. However, like any bank, there are some potential disadvantages to consider, like limited account options and transaction limitations.

Here’s a look at all three of Bask Bank’s products, including who can benefit from them and who might want to consider alternatives.

Bask Bank Interest Savings Account

The Bask Bank Interest Savings Account offers a variable interest rate, which means that the interest rate can change over time. This account currently earns a 5.0% annual percentage yield (APY), which is one of the highest-yielding savings accounts at the moment. Plus, it has no monthly maintenance fees.

The Bask Interest Savings Account is a great option for anyone looking for a fee-free savings account with a competitive 5.0% APY. However, it also has a few disadvantages and may not be a great fit for everyone. If you need access to a physical branch, you may need to look elsewhere. Additionally, the variable interest rate can make it difficult to plan for future earnings.

There are a lot of variables to consider, but here are some pros and cons of Bask Bank’s Interest Savings Account:

Pros

• Competitive interest rates: Bask Bank offers competitive interest rates on its Interest Savings Account, higher than what some traditional banks offer.
• No monthly maintenance fees: Bask Bank does not charge any monthly fees for its Interest Savings Account, so you can keep your money in the account without worrying about fees eating into your earnings.
• No minimum account balance: There is no minimum account balance for a Bask Bank Interest Savings Account, so virtually anyone can take advantage of the high APY.

Cons

• Variable interest rates: The APY is variable, which means that it can change over time. This can make it challenging to plan for future earnings or to compare rates against other products.
• No physical branches: Bask Bank is an online-only bank, meaning you cannot visit a physical branch for customer support or to deposit or withdraw money.
• Transaction limitations: The Bask Bank Interest Savings Account has transaction limits like all savings accounts. You can only withdraw or transfer money up to six times per month.

Bask Bank Mileage Savings Account

Bask Bank’s Mileage Savings Account allows you to earn American Airlines AAdvantage miles instead of interest on your deposited funds. It’s a popular option for travel enthusiasts who redeem their AAdvantage miles for maximum value.

Plus, new customers can get 5,000 bonus AAdvantage miles for opening an account and maintaining at least a $25,000 balance for 90 consecutive days out of the first 120 days of account opening. This offer expires on Nov. 30, 2023.

Plus, all Mileage Savings Account customers earn 2.5 AAdvantage miles per dollar saved, based on your average monthly balance over the course of a year.

For example, keeping $25,000 in a Bask Mileage Savings Account will earn 62,500 AAdvantage miles in a year. AAdvantage miles are worth around 1.8 cents each, depending on how you use them. So you could get at least $1,125 in value from those miles, and more if you redeem them for business- or first-class flights. Note this isn’t factoring in the limited-time offer above.

If you opt for a Bask Bank Interest Savings Account with 5.0% APY, you will earn $1,250.17 in interest over 12 months. You’ll want to evaluate whether the miles are worth more than the cash interest you’re giving up. Also consider the tax liability, since Bask Bank will report mileage earnings as interest income to the IRS at a rate of 0.42 cents per mile.

Pros

• Earns valuable airline miles: Instead of earning interest on your deposits, Bask Bank’s Mileage Savings Account allows you to earn American Airlines AAdvantage miles. This can be an advantage if you’re able to redeem these miles for high-cost airfare.
• No monthly maintenance fees: Bask Bank does not charge any monthly maintenance fees for its Mileage Savings Account, so you can keep your money in the account without worrying about fees eating into your earnings.

Cons

• No cash rewards: Unlike other savings accounts, Bask Bank’s Mileage Savings Account does not offer cash rewards or interest payments, so it may not be the best option if you’re looking for a more traditional savings option.
• No physical branches: Bask Bank is an online-only bank, which means there are no physical branches where you can get customer support or make deposits and withdrawals.
• Mileage earnings are likely taxable: Miles earned with the Bask Mileage Savings Account are viewed as interest income.

Bask Bank’s Mileage Savings Account can be a good option if you’re a frequent traveler and value airline miles more than cash interest payments. However, the lack of cash rewards may not be the best fit for everyone, and the transaction limitations and lack of physical branches may also be a drawback for some customers.

Bask Bank certificates of deposit (CDs)

For those who are unfamiliar with CDs, they are a type of fixed-term savings account that earns a higher interest rate than traditional savings accounts. Plus, CDs are a relatively safe short-term investment option since they’re also FDIC-insured.

With APYs ranging from 4.50% to 5.25%, Bask Bank’s certificates of deposit (CDs) offer competitive rates. Bask’s CD investment terms start at just six months.

• 6 months: 5.55% APY
• 12 months: 5.60% APY
• 18 months: 4.50% APY
• 24 months: 4.50% APY

While you can’t add money to your CD beyond the initial deposit, you can have up to five Bask Bask CDs at once. You can always open another account if you don’t want to wait for the first one to reach maturity before adding additional funds. However, interest rates change over time, so it could be higher or lower than your original CD.

It’s worth noting that you can withdraw interest before a CD has matured, but you’ll incur a penalty if you withdraw additional funds. The fee ranges from 90 days of simple interest for six- and 12-month CDs to 180 days of interest for accounts with terms over 12 months.

Overall, Bask Bank’s CDs can be a good option if you’re looking for a high-yield savings option with a low $1,000 minimum deposit requirement. However, remember that you are locking up your funds for a set amount of time and incur a penalty if you need to withdraw it early.

Frequently asked questions (FAQs)

VIDEO: Why Bask Bank is my Best SAVINGS ACCT in 2023! An Honest Look.

MattCommand

Bask Bank is a legitimate online bank that is FDIC-insured, which means that deposits in the bank are protected up to $250,000 per depositor, per insured bank. As an FDIC-insured bank, Bask Bank is subject to regulatory oversight and must comply with federal banking laws and regulations.

Bask Bank is owned by Texas Capital Bank.

Limited account options, a lack of physical branches and transaction limitations are some disadvantages of Bask Bank.

Yes, Bask Bank reports airline miles earned from the Mileage Savings Account, valuing them at 0.42 cents each.

No, AAdvantage miles earned from a Bask Bank Mileage Savings Account do not count as Loyalty Points toward American Airlines elite status.

Bottom line

Overall, the Bask Bank Interest Savings Account is an excellent option if you’re looking for an FDIC-insured savings account with competitive interest rates and no monthly maintenance fees. Plus, the bank’s Mileage Savings Account could be a good alternative for those looking to travel more.

However, it may not be the best fit for everyone since it lacks physical branches and offers only three financial products. It’s important to consider the potential disadvantages and weigh them against your needs before opening an account.