I receive compensation for content and many links on this blog. Citibank is an advertising partner of this site, as is American Express, Chase, Barclays and Capital One. Any opinions expressed in this post are my own, and have not been reviewed, approved, or endorsed by my advertising partners. I do not write about all credit cards that are available — instead focusing on miles, points, and cash back (and currencies that can be converted into the same). Terms apply to the offers and benefits listed on this page.
Do this now, if you can: Bask Bank* has improved the mileage-earning on its Bask Mileage Savings Account. When the account launched you earned 1 mile for every dollar saved annually. Now you earn 50% more, or 1.5 miles for every dollar saved annually.
And new customers have a Loyalty Point Bonus offer as well (offer terms). Saving money can earn credit towards American Airlines AAdvantage® status. 
However, we’re in the final stretches of the offer.
- If you want to earn Loyalty Points towards 2023 status, open and fund your account immediately.
- If you want to earn Loyalty Points towards 2024 status, make sure to open your account before this offer ends December 15, 2023.
Status in the AAdvantage® program is no longer earned strictly by flying and spending money on airline tickets. You now accrue Loyalty Points by engaging with American Airlines partners, from flying to online shopping and spending on co-branded credit cards. Readers have consistently shared that the biggest missing opportunity was earning Loyalty Points through Bask Bank.
For a limited time – through December 15, 2022 – new accounts that hold a minimum daily balance of $25,000 for 90 consecutive days earn 5,000 American Airlines AAdvantage® Loyalty Points. And you don’t even have to spend any money.
With the focus on the new Loyalty Point Bonus promotion several readers missed the strong ongoing earn from the account. They compared how much money they’d need to deposit into the account with solely the value, to them, of the Loyalty Points earned as an account opening bonus and debated whether or not it was worthwhile (conclusion: it was worthwhile for some). However, that missed the redeemable miles earned at the same time. Indeed, the account offers 50% more mileage-earning than when the account launched less than three years ago – 50% more than accounts earned as recently as July.
- Value compares favorably to most savings accounts. I value AAdvantage® miles at 1.3 cents apiece, earning 1.5 per dollar saved annually represents to me a 1.95% rate of return. Reportedly the average savings account returns less than 0.2%.
- Return looks even better on an after-tax basis. Bask Bank’s terms and conditions say “[m]iles are currently valued at 0.42 cents per mile, the equivalent of 0.42% annual percentage yield” (APY). Assuming that doesn’t change over the next year, earning 37,500 miles (which I value at $487.50) saving $25,000 would generate a 1099 tax reporting form showing a value of $157.50. If you pay taxes on those miles with a hypothetical income tax rate of 40%, you’re paying $63 in taxes. That means netting $424.50.
Compare that to a hypothetical 2.75% APY. That same $25,000 saved would yield $687.50, $275 in taxes, and a net of $412.50. In other words, even at my arguably low valuation of miles you’re beating a high yield interest offer by earning miles. The more you value the miles, the bigger the difference.
- Easily choose (and move) between mileage-earning and interest. Bask Bank also offers the Bask Interest Savings Account currently offering 3.60% APY**. Open both accounts, and consider earning miles when it makes the most sense for you to do so, and interest when that works out better for your situation.
- Even better with a Loyalty Point Bonus for new accountholders. That rate of return doesn’t even factor that as a new accountholder you can earn credit towards American Airlines status, and it’s one of the only ways to do so without actually spending money.
My own most frequent uses of AAdvantage® miles have been trips in first class on Qantas, Cathay Pacific, British Airways, and Etihad. Thanks to these miles I’ve been able to travel the world far more than I ever thought I’d be able to growing up, and to do so in a comfort and style beyond what I’d ever imagined. They’ve taken me all around the world to places like the Maldives; French Polynesia; Australia; Dubai; Southeast Asia (Vietnam, Thailand, Singapore, Malaysia, Indonesia and more); and Europe (e.g. France, Spain).
Overwater Bungalow in the Maldives: Flights Booked With AAdvantage® Miles
Hotel Pool in French Polynesia: Flights Booked With AAdvantage® Miles
I am a current Bask Bank customer, and a customer of products from their parent Texas Capital Bank continuously for 19 years. American Airlines is the airline I’ve flown the most over the past decade, and their miles are the currency I’ve redeemed the most. I’ve valued the upgrades I’ve received, the lounge access flying on their partners around the globe, and the complimentary Main Cabin Extra seats my status has provided. So, the Bask Mileage Savings Account fits my travel perfectly.
This offer even makes sense if you exceed the Loyalty Points needed for Executive Platinum status, already. That’s because Loyalty Points help you achieve Loyalty Choice awards at each of 125,000 points; 200,000 points; 350,000 points; 550,000 points; and 750,000 points provided you also receive credit for at least 30 flights during the qualifying period. These can include systemwide upgrades; bonus miles; gifting of status and more.
You can chase status and Loyalty Choice Awards by opening and funding a new Bask Mileage Savings Account and meeting the qualifications listed above. But don’t forget the redeemable miles you’re earning along the way, also.
*Bask Bank is a division of Texas Capital Bank, Member FDIC.
**Annual percentage yield (APY) as of NOVEMBER 2, 2022. APY may change at any time before or after account is opened.
