You will no longer earn American miles through this bank partnership
Like any airline, American offers its AAdvantage members a variety of ways to earn miles without flying. In addition to co-branded credit cards, online shopping portals, and dining rewards programs, AA offers mileage-earning bank accounts. One of those bank partnerships will soon be discontinued, but it's not all sour grapes because there are better alternatives.
In a letter sent to its members, BankDirect shared that it will be discontinuing its partnership with American Airlines on Aug. 31, 2020. Members are being offered a sign-up bonus of 5,000 AAdvantage miles (worth $70 based on TPG valuations) to switch to a Bask Savings Account by Aug. 31, 2020, and deposit at least $5,000. Those who don't switch will automatically have their BankDirect accounts converted into BankDirect interest-bearing accounts on Sept. 1, 2020. Customers also have the option to can close the account by calling customer service.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
BankDirect vs Bask Bank
BankDirect offered three types of mileage-earning accounts: Mileage Checking with Interest, Mileage Money Market Account (MMA) and Mileage Certificate of Deposit (CD). Each of these accounts offered a different earning structure with the potential to earn thousands of miles each year for saving with the online bank. But you can do much better now with a savings account offered by Bask Bank.
Launched in January 2020, Bask Bank is an online bank that offers savings accounts that earns AAdvantage miles instead of interest. Members earn one AAdvantage mile for every dollar deposited and there's no limit to the number of miles you can earn annually. That equates to a 1.4% return, based on TPG's latest valuations.
There are no fees associated with Bask Savings Accounts, which is an improvement over BankDirect, which did have fees. There is also no minimum funding amount required in order to open an account. Like BankDirect, it's run by Texas Capital Bank, N.A., which boasts a 20-year relationship with the airline and is a member of the FDIC.
Related: Introducing Bask Bank, a new way to earn miles
Bonus opportunities
As previously mentioned, BankDirect customer are being offered 5,000 bonus miles for switching to a Bask Savings Account by Aug. 31, 2020 and depositing at least $5,000. This is the same as Bask Bank's publicly available offer, except that offer is only valid through June 30, 2020.
There are some other valuable bonus opportunities available as well, especially if you tend to carry a high balance and are ready to open your account before the end of the month. First, you can earn an easy 1,000 bonus miles by completing the Bask Bank online feedback survey by June 30, 2020. Second, you can earn extra miles for maintaining certain balance levels.
Savers who maintain a $25,000 balance for 12 consecutive months within the first 14 months of opening an account earn 10,000 bonus miles. That moves up to 20,000 bonus miles for maintaining a $50,000 balance for 12 consecutive months and 40,000 bonus miles for maintaining a $100,000 balance.
Bottom line
The discontinuation of BankDirect isn't much of a bummer, since there is an improved alternative. Bask Bank offers better earning potential, superior technology and doesn't have any fees. It's a nice supplement your travel rewards credit cards even if you weren't previously a BankDirect customer.
Related video:
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.