Bask Bank Review: Great Rates on Savings and CDs

Bask Bank

0 USD
9

Product Rating

9.0/10

Strengths

  • Earn American Airlines AAdvantage miles
  • High APY on Interest Savings Account
  • Attractive CD rates
  • No account fees or minimum balances on savings accounts
  • Up to $250,000 in FDIC Insurance coverage

Weaknesses

  • No checking accounts, loans, or business banking
  • No ATM withdrawals

Did you know that earning airline miles with a bank account is possible? It’s true. With Bask Bank, you can choose between earning a high-interest rate or American Airlines miles on your savings account deposits. You also won’t pay any service fees to use Bask Bank.

But how does Bask Bank stack up against other online banks, like Discover, Chime, or Ally? In this Bask Bank review, I’ll cover the key features, pros and cons, and let you know who Bask Bank is best suited for.

👉 Learn more about Bask Bank

Table of Contents
  1. What Is Bask Bank?
    1. Who Can Join Bask Bank?
  2. Bask Bank Fees
  3. Bask Bank Account Types
    1. Bask Interest Savings Account
    2. Bask Mileage Savings Account
    3. Bask Certificate of Deposit (CD) Account
  4. Bask Bank Pros and Cons
    1. Pros
    2. Cons
  5. Bask Bank Alternatives
    1. Discover Bank 
    2. Chime
    3. Milli
  6. FAQs
  7. Is Bask Bank Worth It?

What Is Bask Bank?

Bask Bank Homepage

Bask Bank is the digital banking arm of Dallas-based Texas Capital Bank. It’s best known for its 20-year (and counting) partnership with American Airlines. Its Mileage Savings Account lets you earn 2.5 miles per dollar deposit without minimum deposit requirements.

If earning AAdvantage miles isn’t your cup of tea, a high-yield savings account and CDs are also available. To the dismay of some, Bask Bank doesn’t offer checking accounts or business banking.

In addition to earning cash interest or airline miles, Bask Bank has FDIC protection of up to $250,000 through Texas Capital Bank (FDIC #34383). 

Who Can Join Bask Bank?

You must be at least 18 years old and have a Social Security number to apply for an account. All banking options are available across the United States, and you can join online.

After initial approval, you must deposit at least $1 within the first 15 days from a linked checking account or a similar service. For example, you may decide to transfer your balance from an existing savings account that doesn’t earn as much interest.

If you wish to add a joint owner to your Bask Bank account, you can do that during the application process. Note that joint owners can only be added to Bask Interest Savings Accounts and Bask Certificate of Deposit (CD) Accounts. Both account owners must be 18 years of age or older.

Learn More About Bask Bank

Bask Bank Fees

With Bask, there are no account service fees, inactivity fees, or minimum balance thresholds.

The only minimum funding requirement is making your first deposit within the first 15 days to avoid account closure.

Term CDs redeemed before their maturity date will also incur an early redemption penalty of 3-6 months of interest income. This is a standard penalty for any bank CD unless you open a no-penalty CD, which Bask Bank doesn’t offer.

Bask Bank Account Types

Bask Bank offers three different savings options:

  • Bask Interest Savings Account – this is a traditional online savings account,
  • Bask Mileage Savings Account – similar to the Bask Interest Savings account, except the interest earned is paid out in American Airlines AAdvantage miles, and;
  • the Bask Certificate of Deposit (CD) Account.

Let’s take a closer look at each account type.

Bask Interest Savings Account

Bask interest savings account

The Bask Interest Savings Account is an online high-yield savings account that pays 5.10% APY on all deposits (as of this writing). For 2023, Bask was named among the Best Online & NeoBank Savings Accounts.

This is one of the best savings account interest rates available today, and the variable rate has been increasing as the federal funds rate rises and banks can pay more interest to savers. 

Consider this account to earn cash interest like a traditional interest-bearing savings account. However, if you need extra AAdvantage miles to book an award flight, the Bask Mileage Savings Account may be the better option.

Bask Bank AAdvantage Miles Calculator

Bask Mileage Savings Account

Bask Mileage Savings Account

Bask Bank is well-known for its American Airlines Mileage Savings Account. It’s free to open, and you can earn 2.5 AAdvantage miles per $1 saved annually.

Your earned miles will be deposited into your linked American Airlines AAdvantage account monthly before the 5th. As an example, earned miles during October will deposit by November 5th.

While there are no account service fees or mileage transfer fees, your earned miles are taxable as interest income. Like your other savings account, you will receive an IRS Form 1099-INT at the end of the year.

💵 Bonus Offer: New members can earn 5,000 Bonus AAdvantage Miles when you open a new Bask Mileage Savings Account by . Then, maintain a minimum daily account balance of $25,000 for 90 consecutive days out of the first 120 days following the initial account opening.

Bask Bank Mileage Calculator

Because your miles earning potential will differ from cash interest, the bank offers an easy-to-use online calculator to estimate your annual miles interest.

For example, let’s say you make an initial deposit of $10,000 and deposit $2,000 monthly. You will earn 42,000 miles during the first 12 months in this scenario.

One-way domestic award flights start at 7,500 miles through American Airlines. Additionally, each AAdvantage mile tends to be worth approximately 1.5 cents for award flights, but the actual redemption value varies by itinerary.

Learn More About Bask Bank

Bask Certificate of Deposit (CD) Account

With Bask Bank, you can purchase term CDs with maturity dates from 6 months to 24 months. The minimum deposit is $1,000. 

The upfront rates can be higher than the interest-bearing account. For example, you can earn at least 5.40% APY for a 6-month term (as of this writing).

However, early redemption penalties apply, and you may need to forfeit the first three months or six months of interest earnings, depending on the CD terms. 

Compare Bask Bank with the best CD Rates available right now.

Learn More About Bask Bank

Bask Bank Pros and Cons

Bask Bank offers some of the best interest rates on savings and CDs, but some customers may find their product range too limited. Here’s my list of Bask Bank’s pros and cons.

Pros

  • Earn American Airlines AAdvantage miles
  • High APY on Interest Savings Account
  • Attractive CD rates
  • No account fees or minimum balances on savings accounts
  • Up to $250,000 in FDIC Insurance coverage

Cons

  • No checking accounts, loans, or business banking
  • No ATM withdrawals

Bask Bank Alternatives

Bask Bank has plenty to offer clients looking for attractive interest rates on savings. Unfortunately, they don’t have a checking account product, nor do they have an ATM network for easy access to cash.

Also, the miles you earn can only be from American Airlines AAdvantage.

If you want an online bank with both savings and checking, the following Bask Bank alternatives might be a better fit. Keep in mind their interest rates may not be as high as Bask.

Discover Bank 

You can open a Discover® Bank high-interest savings account without a minimum deposit. You can also get a free checking account that earns 1% cash back on the first $3,000 in monthly debit purchases. 

Discover also offers bank CDs, money market accounts, IRA CDs, and IRA savings accounts. Our Discover Bank review digs deeper into the account options. 

At the time of this writing, Discover’s savings interest rate isn’t as attractive as Bask’s rate but several Discover Bank promotions offer bonus cash and are worth considering.

Learn More About Discover

Chime

Chime lets you open a checking account, a high-yield savings account, and a credit builder account. There are no monthly fees, but you may need to receive a minimum amount of direct deposits to be eligible for free overdraft protection and a secured credit card. 

You may also consider Chime as it’s a second-chance bank that’s easier to qualify for if you have no credit or damaged credit. Unlike most online banks, Chime won’t run your application through ChexSystems to determine your eligibility. For more information, check out our Chime Bank review.

Learn More About Chime

Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The Chime Visa® Debit Card is issued by The Bancorp Bank or Stride Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. Please see back of your Card for its issuing bank.

Milli

Milli is a banking app that provides a high-interest savings account with no fees or account minimums. It allows you to earmark different parts of your balance into “jars, ” allowing you to easily save for different goals.

It doesn’t have a web version, only an app. However, Milli Savings currently pays interest of 4.75% APY on all account balances. So that might be a hoop worth jumping through.

Here’s our full review of Milli.

Learn More About Milli

FAQs

Is Bask Bank a local bank?

No, Bask Bank only offers online savings accounts and CDs. You can add funds only by linking an external bank account and scheduling one-time or recurring transfers.

Is Bask Bank trustworthy?

Yes, Bask Bank is the online banking arm of Texas Capital Bank, which was founded in 1998 and has more than $40 billion in assets. Eligible deposits held with Bask Bank are protected with FDIC insurance.

What are the Bask Bank customer service options?

Phone support is available Mondays-Fridays from 7 am to 7 pm CST and Saturdays from 9 am to 4 pm CST. Email support is available 24/7 for non-urgent topics.

Is there a Bask Bank checking account?

No, Bask Bank only offers savings accounts and certificates of deposit (CDs).

Learn More About Bask Bank

Is Bask Bank Worth It?

Bask Bank is worth using if you want to earn American Airlines AAdvantage miles instead of interest on your savings. Also, the Bask Interest Savings Account offers a competitive yield with no fees.

Other online banks, like the ones mentioned above, are better if you want more account options, such as a checking account, rewards credit card, or personal loans. You may also choose a national bank if you need local branch access across the United States.

If you don’t mind opening multiple accounts, you could always keep your savings with Bask and have your online checking account elsewhere.

Other Posts You May Enjoy:

Northwest Registered Agent Review

Northwest Registered Agent provides affordable business formation and registered agent services. It also offers additional business services, including business identity, mail forwarding, virtual office, and more. Is it worth it? Find out in this Northwest Registered Agent review.

Lili Review: Free Small Business Banking and More

Lili has created a banking experience that just might make your solo business operations a little easier. Although there are some limitations of Lili that probably won't work for full-time business owners, there are several that make Lili a viable option for side-hustlers.

Twigby Review: Key Features, Plans, and Pricing

Twigby is an affordable cell phone carrier offering customizable data plans. All Twigby plans include unlimited nationwide talk & text, 5G nationwide coverage, access to mobile hotspot, Caller ID, Call Waiting, Call Forwarding, and more. How does Twigby compare to other discount carriers, such as Mint Mobile, Visible, and Tello? Find out in this Twigby review.

About Josh Patoka

After graduating in $50k with student loans in May 2008 from Virginia Military Institute with a B.A. International Studies and Political Science with a minor in Spanish (he studied abroad in Sevilla, Spain for 3 months), Josh decided to sell his soul for seven years by working in the transportation industry to get out of debt ASAP and focus on doing something else with a better work-life balance.

He is a father of three and has been writing about (almost) everything personal finance since 2015. You can also find him at his own blog Money Buffalo where he shares his personal experience of becoming debt-free (twice) and taking a 50%+ pay cut when he changed careers.

Today, Josh relishes the flexibility of being self-employed and debt-free and encourages others to pursue their dreams. Josh enjoys spending his free time reading books and spending time with his wife and three children.

Opinions expressed here are the author's alone, not those of any bank or financial institution. This content has not been reviewed, approved or otherwise endorsed by any of these entities.

Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments

As Seen In:

0
Would love your thoughts, please comment.x
()
x