Last Call Offers For Bask Bank Savings Accounts

Filed Under: Airline Rewards, American AAdvantage
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I’ve written extensively about Bask Bank, which launched earlier this year, and is my favorite savings account product right now. If you don’t yet have a Bask Bank account, want to refer friends to Bask Bank, or still have a BankDirect account, there are some upcoming deadlines you’ll want to be aware of.

Here are a few things to keep in mind:

Why should you care about Bask Bank?

Bask Bank lets you earn American Airlines AAdvantage® miles rather than interest for a savings account, and it’s at a very lucrative rate. With Bask Bank, you earn one AAdvantage® mile for every dollar deposited annually.

That means if you put $10,000 in your Bask Savings Account for a year, you’ll earn 10,000 AAdvantage® miles.

See this post for everything you need to know about Bask Bank. This really is a compelling product, especially in a low-interest-rate environment. I value AAdvantage® miles at 1.5¢ each, so that’s a better effective return for me than even most of the “high interest” online savings accounts right now. I use this as my primary savings account, and recommend it for others as well.

Last chance: convert BankDirect account to Bask Bank

Back in June, it was announced that BankDirect mileage-earning checking accounts would be automatically shut down by August 31, 2020. I had a BankDirect checking account for close to a decade and found it to be a great way to earn AAdvantage® miles, though the banking experience itself was a little clunky.

However, a few months ago I closed my BankDirect account and moved those funds to a Bask Savings Account — both Bask Bank and BankDirect are part of Texas Capital Bank, but the value proposition of Bask is much better, as is the user experience.

If you still have a BankDirect mileage-earning checking account open, you’ll have to choose one of the following three options by August 31, 2020:

  1. Open a new Bask Savings Account, so you can continue to earn miles (this is what I’ve done, and what I’d recommend others do)
  2. Keep your account at Texas Capital Bank, and have it automatically convert to an interest-bearing checking account in September
  3. Move your funds to another institution

Given the current low-interest-rate environment, the earnings rates on the Bask Savings Accounts are a great value. BankDirect has been a good way to earn miles for the past decade, but the Bask Savings Accounts are a better all-around product. I’m happy to continue earning miles instead of interest for my emergency fund, and there’s no reason not to switch ahead of the forced migration in September.

Opening a Bask Savings account

As mentioned above, Bask Bank has a phenomenal website and app, which makes opening an account easy. When I opened my account a few months ago, it took less than five minutes.

You have the option to fund your account with an external bank transfer during the onboarding process. If you want to transfer funds from your BankDirect mileage account, you can send a secure message when logged in to your current BankDirect account or call customer service at 833-260-4320.

The clock is ticking: Bask Bank refer-a-friend bonus

Bask Bank has a refer-a-friend* program, whereby customers have an opportunity to refer friends to Bask Bank through September 30, 2020. Here’s how it works:

  • You’ll earn 5,000 bonus AAdvantage® miles for each friend you refer, up to a total of 25,000 bonus miles (which you would receive if you refer five friends) Existing customers can find their referral link in the Bonus Dashboard
  • In order for the person referring to earn the bonus miles, both the referrer AND the person being referred need to maintain a minimum daily balance of $10,000 for 90 consecutive days by December 31, 2020
  • The person referring and the person being referred both need to link their AAdvantage® accounts in order to receive the bonus, and miles will be awarded the first Wednesday following all qualifications being met

Again, I personally value American AAdvantage® miles at ~1.5 cents each, so to me that’s the equivalent of a $75 bonus for referring friends.

I’m of course grateful if you sign up using my referral link, but as my bonus-earning potential maxes out after referring five people, it would be great if other current Bask Bank customers could leave their links in the comments section below.

Bottom line

If you still have an open BankDirect account, then you only have through the end of the month to choose what you want to do with your account. Personally I’d recommend converting it to a Bask Savings Account, given that it’s basically a new and improved version of BankDirect.

Currently, the best offer for opening a Bask Savings Account is through the refer-a-friend deal. So if you plan on signing up for Bask Bank, make sure you use one of those links. Similarly, if there are any friends you’ve been meaning to refer, this is a good chance to do so.

Finally, if you’ve been putting off opening a Bask Savings Account, the current refer-a-friend offer is likely to be the best bonus we see for the rest of this year, given how low-interest rates are otherwise.

You’re welcome to use my link, otherwise, readers can leave their links below.

*Bonus Award offer valid through September 30, 2020. Terms and Conditions apply. AAdvantage® bonus miles are awarded within 10 business days upon meeting offer qualifications and may take 6-8 weeks to post to your AAdvantage® account.  The value of this offer will be reported to the IRS and the recipient is responsible for any federal, state or local taxes on this offer.  Bask Bank and BankDirect are divisions of Texas Capital Bank, N.A. Member FDIC. The sum of your total deposits with (i) Bask Bank; (ii) BankDirect; and (iii) Texas Capital Bank, N.A. are insured up to $250,000. Additional coverage may be available depending on how your assets are held.
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Comments
  1. Not that it matters to you earning your referral fee but as usual with “bloggers”, critical facts to those that care are not disclosed:

    “Will American Airlines AAdvantage® miles earned through Bask Bank be taxable?
    AAdvantage® miles awarded by Bask Bank for maintaining a deposit balance are viewed as interest income. This income will be reportable to the IRS and to you for the year in which the miles were posted to your AAdvantage® account.

    AAdvantage® bonus miles awarded for other activities will also be considered reportable as either miscellaneous income or interest income, depending on the nature of the award. Bask Bank will issue each customer the appropriate IRS Form 1099 for the AAdvantage® miles awarded each calendar year. For more information, you can visit our Account Agreement, Terms & Disclosures.”

  2. I called them – Yes – They ARE taxable.
    If you have $10,000 sitting around – you can get 0.8% at Ally Bank or another bank like Capital One 0.75% – or you can put them at Bask and get 10,000 miles and get a 1099 for 0.42c per miles
    so your choice is for each $ in account left for a year
    – pre tax 0.80c or 1 mile – income of 0.42 reported
    So 1 mile = 0.80+0.42c pre-tax = 1.22c pretax
    or for someone in a high tax bracket 50% about 0.6c post tax
    Actually not a bad cost per mile but the real question is
    if you really had 100k would you rather put it in Amazon stock or in AA miles?

  3. Annoying that everyone who has this type of account has put their links up. We all know that the blogger can easily get his 5 referrals. Then again, links and ads like this is how the bloggers make their living.
    The tax has been consistently disclosed.
    Here’s the problem. It requires 1 YEAR! And therefore it shows that readers here do not have good financial sense.
    There are plenty of better things to do with $10,000 for one year.
    In order to get the AA miles, you need to keep the money there for at least a year so in a sense it is not like a savings account but more like a CD.
    And for that, this is not a good return.
    These days due to the higher cost of inflation than what bank accounts provide people only have the cash they need in their bank accounts otherwise they are losing money!

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