NEW: Earn AAdvantage Loyalty Points With Bask Bank

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 3.60% 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.
Conversations (24)
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  1. Pam Guest

    Ben, you opened your acct Jan 2020. Do you now earn 1.5 AA miles? Am wondering if they update existing customers with new features?

  2. AT Guest

    I use, and love, Bask Bank. Yes - as interest rates become higher and higher the AA miles option becomes less attractive (though they too have increased from 1 to 1.2 to now 1.5 miles per dollar).
    As others said below, this is great when you have a particular redemption in mind. I use them for Qatar Business to the subcontinent (70K each way) so it's a spectacular deal (for me, for now).

    ...

    I use, and love, Bask Bank. Yes - as interest rates become higher and higher the AA miles option becomes less attractive (though they too have increased from 1 to 1.2 to now 1.5 miles per dollar).
    As others said below, this is great when you have a particular redemption in mind. I use them for Qatar Business to the subcontinent (70K each way) so it's a spectacular deal (for me, for now).

    It's ironic that they call them loyalty points but it's only for new customers, and not for existing (i.e., the already established as loyal) customers!!

  3. CMX Guest

    I don't get the point of worrying about compounding interest at this rate. Do the math yourself: at 2%, with compound interest for 10 years, the return is 1.02^10=1.22 -> 22% return; without compound interest, it is 2%*10=20%... a 2% difference in all of 10 years, easily offset by the tax benefits of the lower valuation of AA miles.

  4. Mike P Guest

    Question... So I open a checking account. Put 25k in it..After 90 days I get the 25K AA bonus miles. Keep the money in the account for 1 year and I get 25k+ more AA miles..

  5. Greg Guest

    Bask needs to start offering 3x miles per dollar deposited or 2 miles per dollar plus 1 loyalty point per dollar deposited to be competitive with rates on other savings accounts and lower risk Treasury yields. Ben: "2%" isn't viable as a deal.

    I have moved large amounts away from Bask this year as they have failed to stay competitive.

  6. Surfdolfin Guest

    I've parked funds here since it was first available in January 2020. Since I have other sources of funds, this is my vacation incentive to plan and take trips, business class or better. Wife and I to Africa 2x's this year and planning another trip in 2023. Lower tax rate, too. Works for us, but not everyone.
    BTW: Any news out on AAmiles for Qatar Air? I find no AA awards on QR after Feb '23????

    1. Stan P Guest

      Qatar doesn’t release J to partners more than 121 days in advance and X in more than 181 days , or something like that …

  7. Timo Gold

    I opened the Bask account a few years ago via a link here. Since then I've parked about $20k and have earned and used the miles. I have other primary savings so this is simply an easy passive way to earn miles. I'm not too concerned about the lost interest revenue due to compounding especially since rates are very low. I had CDs in the mid-1980s earning 18% while I was in university so that...

    I opened the Bask account a few years ago via a link here. Since then I've parked about $20k and have earned and used the miles. I have other primary savings so this is simply an easy passive way to earn miles. I'm not too concerned about the lost interest revenue due to compounding especially since rates are very low. I had CDs in the mid-1980s earning 18% while I was in university so that was great for compounding. I treat this account as my emergency savings with benefits.

  8. Chris Guest

    With money market rates exceeding 2.5%, there's no current situation that would make this a better deal.

  9. Jennifer Guest

    I would max out I Bond contributions first before tying up money in this saving account. Not a bad option though for part of your emergency savings.

  10. Holly Guest

    Just a heads up …you can’t access your Bask account when you’re outside of the United States.

  11. LP Guest

    Just to clarify, only the 5,000 point "bonus" counts as Loyalty Points, not the 1.5 miles/dollar/year, right?

    1. Eskimo Guest

      Yes this whole blog post, if meet the requirements will get you a minimum and maximum of 5000 LP. You do not earn 5000 miles for this 5000 LP.

  12. BDL_Flyer Guest

    All depends if you have a redemption in mind.
    In 2 years, I was able to use the miles earned from an account to redeem a First Class Flight from HND to JFK. The retail value of the flight was $17,000. No way I would have gotten that much from my current savings accounts.

    1. Eskimo Guest

      No way would you pay $17,000 retail value for that flight either.

      All depends if you have a valuation in mind.
      If it makes you happier, you could have paid $300 million to buy a 787 to fly from HND to JFK.

  13. Bob Guest

    The bloggers are pushing this "deal" big-time. Don't fall for it. There are so many other easy ways to earn LPs that don't require you to park real money in a low-earning account.

    1. Eskimo Guest

      So how can I earn Executive Platinum without credit card spend?

      "park real money in a low-earning account." = "Cost of buying EXP"

    2. kiowawa Member

      Did I miss the article on other easy ways? Would love to know the other options that are easy. Credit card and flying are obvious. Opinions take a lot of time. I don’t see a lot of other easy ways. But hope to! Thanks!

    3. TranceXplant Member

      If you're just looking to rack up LP at the lowest price, RocketMiles and Bookaahotels are probably the best options. Hotel bookings can net up to 14k LP per night (10k + accelerators). I've accumulated about 140k LP that way.

  14. Eskimo Guest

    I got click baited this time. :( Bonus is a better term than earn.

    I was already thinking of where and how much to move money to get a recurring EXP.

  15. Bgriff Guest

    In addition to interest rates being higher than they were, I think you do also have to consider that you are forgoing the potential of compounding interest here. Which was a low cost when you could earn 1-2% elsewhere, so the new amount of capital that could be compounded upon was pretty negligible, but as rates continue to climb the opportunity cost of that starts to become more significant.

    1. Colorunr Guest

      It's good to see that others are calling out the drawbacks to this product. I've brought up the compounding issue on other sites, but it seems to just get shrugged off. Another issue I have is sites touting this account as being FDIC insured, which is correct--for the principal only. The miles earned are absolutely not insured. In fact, the account holder doesn't even own them, and AA could (though highly unlikely) scrape them back...

      It's good to see that others are calling out the drawbacks to this product. I've brought up the compounding issue on other sites, but it seems to just get shrugged off. Another issue I have is sites touting this account as being FDIC insured, which is correct--for the principal only. The miles earned are absolutely not insured. In fact, the account holder doesn't even own them, and AA could (though highly unlikely) scrape them back at will (this makes me grind my teeth considering that you pay taxes on those borrowed miles)... Having said that, I jumped on the big bonus they offered back in early 2020, but am drawing down the account now.

    2. Colorunr Guest

      Simply put, Bask miles don't compound; Interest does. Compounding begins after the first reinvestment and becomes exponentially more significant as time goes on. Regarding your comment of "tenfold risk" in devaluation, you've actually got it backwards. Miles/point valuations are obviously subjective, but there are online resources that provide historical valuations (e.g., TPG) and over the past decade the devaluation has been minuscule in comparison to the return you would have received with compounded interest (three...

      Simply put, Bask miles don't compound; Interest does. Compounding begins after the first reinvestment and becomes exponentially more significant as time goes on. Regarding your comment of "tenfold risk" in devaluation, you've actually got it backwards. Miles/point valuations are obviously subjective, but there are online resources that provide historical valuations (e.g., TPG) and over the past decade the devaluation has been minuscule in comparison to the return you would have received with compounded interest (three to four-fold in my calculations). However, devaluation is indeed a risk, and yet one more point that these blogs aren't mentioning when they compare a Bask savings account to a traditional savings account.

      Didn't follow your tangent into insuring cookies, but it sounds like you were reinforcing my point: The FDIC has absolutely nothing to do with the miles, and AA tells you in their terms that they can take them at will.

    3. Eskimo Guest

      The issue of compounding is it needs time to be significant.
      If you are comparing apples to apples, when you redeem those miles you should treat it as you withdraw the savings too.
      If you're going to save the miles for 10 years then redeem it, you would have the tenfold risk of devaluations to worry than losing out on compounded interests.

      To the point of FDIC insured.
      The bank doesn't hold...

      The issue of compounding is it needs time to be significant.
      If you are comparing apples to apples, when you redeem those miles you should treat it as you withdraw the savings too.
      If you're going to save the miles for 10 years then redeem it, you would have the tenfold risk of devaluations to worry than losing out on compounded interests.

      To the point of FDIC insured.
      The bank doesn't hold on to the miles, it's already earned by you in your AA account, hence there is nothing to insure. If they pay you interest in cookies, do you think FDIC would insure them? Will you get taxed, yes those cookies are 1099-INT.
      And you will have no agency insuring your loyalty points or miles or cookies for any business.

      Both of you have valid points only if the account holder is locking the money in for decades without touching it. Otherwise, too many reasons to get shrugged off.

Featured Comments Most helpful comments ( as chosen by the OMAAT community ).

The comments on this page have not been provided, reviewed, approved or otherwise endorsed by any advertiser, and it is not an advertiser's responsibility to ensure posts and/or questions are answered.

LP Guest

Just to clarify, only the 5,000 point "bonus" counts as Loyalty Points, not the 1.5 miles/dollar/year, right?

1
BDL_Flyer Guest

All depends if you have a redemption in mind. In 2 years, I was able to use the miles earned from an account to redeem a First Class Flight from HND to JFK. The retail value of the flight was $17,000. No way I would have gotten that much from my current savings accounts.

1
Bgriff Guest

In addition to interest rates being higher than they were, I think you do also have to consider that you are forgoing the potential of compounding interest here. Which was a low cost when you could earn 1-2% elsewhere, so the new amount of capital that could be compounded upon was pretty negligible, but as rates continue to climb the opportunity cost of that starts to become more significant.

1
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A Year Of Earning Miles With Bask Bank