My husband and I both have online Mileage Savings Accounts with Bask Bank. Starting today, Bask Bank just increased our mileage earnings by 20%
Details on Bask Bank Mileage Savings Accounts
I’ve written about Bask Bank before (see this post). I’m not affiliated with this bank at all. But, I write about ways my family earns miles to use on travel, and this account is one of those ways.
Instead of getting cash interest, this specific account gives out American Airlines miles. Previously, the rate was 1 AA mile per dollar each year. Now, the rate is 1.2 AA miles per dollar each year. The miles are based on your average monthly balance and are given out monthly.
For example, if you put $20,000 in your account and left it there for a year, you would have accumulated 20,000 AA miles over the year based on the old rate, broken out by month. But now, $20,000 gives you 24,000 AA miles over the year with the new rate.
The miles you earn are taxed at the end of the year (just like other savings accounts). The miles are valued at .42 cents per mile.
We use our Bask accounts to stash our emergency funds and our savings for property taxes (which we pay ourselves instead of using an escrow account). These accounts do not give the same type of return as long-term investments. But, we can withdraw our cash quickly and easily.
I’ve found great value with AA miles for some Web Special Awards in the past, especially since my local airport is an AA hub.
How does my family travel so much? We use miles and points from credit card bonuses. See my Travel Hacking 101 post as well as current credit card offers here.